Farmers to Receive Partial Compensation as Supreme Court Acknowledges Natural Causes and Seed Quality Issues
In a significant judgment, the Supreme Court of India has modified the compensation awarded to farmers in a case involving claims of substandard groundnut seeds. The case, M/s Shyam Beej Bhandar v. Suresh, saw the appellants, M/s Shyam Beej Bhandar and Shree Ram Agro Bio-Tech, challenging the orders of the National Consumer Disputes Redressal Commission (NCDRC) and the District Forum, Alwar, Rajasthan.
The Supreme Court, led by Justices B.V. Nagarathna and Ujjal Bhuyan, addressed the appeals filed by the appellants who were held accountable for providing allegedly substandard seeds that resulted in failed crops for several farmers. The initial complaint was lodged by the farmers in 2013 after an inspection report indicated potential seed quality issues, as well as natural factors like excess rainfall affecting crop yield.
The District Forum had originally ordered the appellants to compensate the farmers, a decision that was overturned by the State Consumer Disputes Redressal Commission. However, the NCDRC reinstated the order of the District Forum, which prompted the appellants to seek relief from the Supreme Court.
The Supreme Court’s judgment focused on the dual factors contributing to the crop failure: the alleged substandard quality of seeds and natural causes, such as excessive rainfall. The inspection report revealed that while 50% of the pods were fully developed, the rest were not, suggesting a partial deficiency in service by the appellants.
In its decision, the Supreme Court ordered the release of 50% of the compensation amount, which had been previously deposited by the appellants, to the farmers along with any accrued interest. The remaining amount is to be refunded to the appellants. The Court acknowledged the presence of natural causes affecting the yield and thus modified the findings of the lower forums regarding the extent of the deficiency in service.
This ruling underscores the Court's balanced approach in considering both the alleged seed quality issues and the uncontrollable natural factors impacting agricultural productivity. The decision is expected to have significant implications for similar consumer protection disputes involving agricultural products.
Statutory provision(s): Consumer Protection Act, 1986, Section 12
M/s Shyam Beej Bhandar v. Suresh, (SC) : Law Finder Doc id # 2853234
