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2012 (1) TMI 332 - SC - Indian LawsArbitration agreement - Jurisdiction of District Forums on Quality of seeds - commercial production of the seeds - farmers/growers 'consumer' u/s 2(d) of the Consumer Act - awarded compensation - Appellant - M/s. National Seeds Corporation Ltd. (NSCL) is a Government of India company. Its main functions are to arrange for production of quality seeds of different varieties in the farms of registered growers and supply the same to the farmers. The Respondents own lands in different districts and are engaged in agriculture/seed production. They filed complaints with the allegation that they had suffered loss due to failure of the crops/less yield because the seeds sold/supplied by the Appellant were defective. HELD THAT:- the farmers/growers purchased seeds by paying a price to the Appellant, they would certainly fall within the ambit of Section 2(d)(i) of the Consumer Act and there is no reason to deny them the remedies which are available to other consumers of goods and services. there is nothing in the Seeds Act and the Rules which may give an indication that the provisions of the Consumer Act are not available to the farmers who are covered under 'consumer'. As a matter of fact, any attempt to exclude the farmers from the ambit of the Consumer Act by implication will make that Act vulnerable to an attack of unconstitutionality on the ground of discrimination. The seeds sown under the supervision of the expert deputed by the Appellant. The entire crop was to be purchased by the Appellant. The agreements entered into between the Appellant and the growers clearly postulated supply of the foundation seeds by the Appellant with an assurance that the crop will be purchased by it. It is neither the pleaded case of the Appellant nor any evidence was produced before any of the Consumer Forums that the growers had the freedom to sell the seeds in the open market or to any person other than the Appellant. Therefore, it is not possible to take the view that the growers had purchased the seeds for resale or for any commercial purpose and they are excluded from the definition of the term 'consumer'. As a matter of fact, the evidence brought on record shows that the growers had agreed to produce seeds on behalf of the Appellant for the purpose of earning their livelihood by using their skills and labour. After examining the reports the District Forums felt satisfied that the seeds were defective and this is the reason why the complainants were not called upon to provide samples of the seeds for getting the same analysed/tested in an appropriate laboratory. the procedure adopted by the District Forum was in no way contrary to Section 13 of the Consumer Act and the Appellant cannot seek annulment of well-reasoned orders passed by three Consumer Forums on the specious ground that the procedure prescribed under Section 13 of the Consumer Act had not been followed. In the result, the appeals are dismissed. The Appellant shall pay cost of ₹ 25,000/- to each of the Respondents. The amount of cost shall be paid within a period of 60 days from today.
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