MADHYA PRADESH STATE CONSUMER DISPUTES REDRESSAL COMMISSION
S.K. Kulshreshtha, President, Neerja Singh and Subhash Jain, Members
RAMCHANDRA - Appellant
Versus
NANDECHA BROTHERS - Respondent
First Appeal No. 299 of 2010
Decided on : 12-02-2013
Mr. Parag Kale, Advocate, for the Appellant; None., for the Respondent
The main legal point established is that under the Fertilizer Control Order, a dealer cannot sell fertilizers at a price exceeding the maximum price fixed under the order, and the buyer is entitled to recover the difference in price if charged more.
Headnote:
Fertilizer Control Order - Price Fixation - The court held that the appellant is entitled to recover the difference in price of the fertilizer bags sold to him, as the respondent charged more than the price fixed under the Fertilizer Control Order.
Fact of the Case:
The appellant purchased Ammonium Sulphate at a price higher than the price fixed by the Government under the Fertilizer Control Order. The District Forum dismissed the complaint on the ground that the price fixed for sale of bags to the farmers was not proved.
Finding of the Court:
The court found that the respondent charged more than the price fixed under the Fertilizer Control Order and held the appellant entitled to recover the difference in price, along with additional amounts for mental agony and cost of litigation.
Issues: The main issue was whether the appellant was entitled to recover the difference in price of the fertilizer bags sold to him, as per the Fertilizer Control Order.
Ratio Decidendi: The court relied on Section 3 of the Essential Commodities Act and the Fertilizer Control Order, which provides for the fixation of prices of fertilizers and prohibits the sale of fertilizers at a price exceeding the maximum price fixed under the order.
Final Decision: The court directed the respondent to pay the appellant the difference in the price of the fertilizer bags, along with amounts for mental agony and cost of litigation, within one month, failing which interest at the rate of 9% p.a. would become payable.
ORDER
S.K. Kulshreshtha, President (Oral) Mr. Parag Kale, learned Counsel for the appellant.
None for the respondent who has filed written arguments.
Heard learned Counsel for the appellant and perused the written arguments filed by the respondent.
This appeal is directed against the order dated 30.5.2009 of the District Consumer Disputes Redressal Forum, Ujjain in C.C.No.378/2008 by which the District Forum has dismissed the appellant's complaint against the respondent.
2. The appellant had purchased Ammonium Sulphate two bags, each for Rs. 460 on 18.12.2007 above the price fixed by the Government under the Fertilizer (Control) Order, 1985 under which the price fixed for sale of bags to the farmers was Rs. 387.40 per bag. Learned Counsel therefore approached the District Forum but the District Forum dismissed the complaint on the ground that the price fixed applies to the establishment of the respondent has not been proved. The Fertilizer (Control) Order has been issued under Section 3 of the Essential Commodities Act and Fertilizer being Essential Commodity is governed and regulated by the said Control Order. Section 3 under Chapter II Price Control provides for Fixation of Prices of Fertilizers and reads as follows:
3. Fixation of prices of fertilizers
(1) The Central Government may, with a view to regulating equitable distribution of fertilizers and making fertilizers available at fair prices, by notification of the Official Gazette, fix the maximum prices or rates at which any fertilizer may be sold by a dealer, manufacturer, importer or a pool handling agency.
(2) The Central Government may, having regard to the local conditions of any area, the period of storage of fertilizers and other relevant circums-tances, fix different prices or rates for fertilizers having different periods of storage or for different areas or for different classes of consumers.
(3) No dealer, manufacturer, importer or pool handling agency shall sell or offer for sale any fertilizer at a price exceeding the maximum price or rate fixed under this clause.
From Sub-section (3) it is clear that a dealer cannot offer for sale any fertilizer at a price exceeding the maximum price or rate fixed under that clause.
3. Learned Counsel for the appellant has referred to fixation of price as communicated vide letter dated 9.10.2007 of the Government. The Government has fixed the price of the fertilizer per bag at the rate of Rs. 387.40. Thus the respondent has charged Rs. 72.60 per bag more than the price fixed under the said control order.
4. Ex-consequentia, the appellant is entitled to recover Rs. 145.20 from the respondent dealer.
5. The appeal is thus disposed of with the direction that the respondent shall, within one month from today pay a sum of Rs. 145.20 to the appellant towards difference in the price of the fertilizer bags sold to him and pay Rs. 1,500 towards mental agony and Rs. 500 towards cost of litigation.
6. If the above amounts are not paid within one month, interest at the rate of 9% p.a. from the date of this order, shall become payable.