NUZIVEEDU SEEDS LIMITED Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioners are the companies incorporated under the provisions of the Companies Act, 1956 and are inter alia engaged in the business of research, development, production, marketing and sale of seeds. The petitioners in these writ petitions have assailed the validity of Sec. 5(1)(b) and Sec. 7 of the Andhra Pradesh Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Act, 2007 as well as the Rules 27, 28 and 29 of the Andhra Pradesh Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Rules, 2007 on the ground that the same are unconstitutional. The petitioners, in addition, have assailed the validity of the Order dtd. 3/10/2012 passed by the Chairman, District Level Committee granting compensation in favour of the farmers. In order to appreciate the grievance of the petitioners, relevant facts need mention which are stated infra.

(2.) In the year 1955, the Parliament enacted Essential Commodities Act. The law relating to seeds is governed by the Seeds Act, 1966. The provisions of the Seeds Act, 1966 regulate the quality of seed in respect of notified varieties. Over the period of time, there has been a substantial change of pattern of agriculture particularly in usage of seed. Therefore, the provisions of the Act have been found to be inadequate for enforcement in respect of quality of cotton seed and regulation of trade of non-notified cotton varieties, research hybrid varieties etc., as a result the entire economy of farmers is affected. Seed was initially declared to be an essential commodity under the Essential Commodities Act, 1955. The Government of India in exercise of powers under Sec. 3 of the Essential Commodities Act, 1955 has issued Seeds (Control) Order, 1983.

(3.) The expression 'cotton seed' was deleted by way of amendment w.e.f. 24/12/2006 from the Schedule of the Essential Commodities Act, 1955. The provisions of the Environment Protection Act, 1986, the Rules made thereunder and the Rules for Manufacture, Use/Import/ Export and Storage of Hazardous Micro Organisms/ Genetically Engineered Organism or Cells, 1989 deal with only biosafety aspects of transgenic cotton seed. The State Legislature noticed that traders who were dealing in cotton seed including transgenic cotton seeds have been resorting to dubious methods and exploitation of poor farmers, particularly in respect of scarce type of cotton seed. The said methods and exploitation of farmers led them into debt trap and sometimes suicides as well. It was further noticed by the State Legislature that multinational companies were taking undue advantage of their monopoly in respect of scarce type of cotton seed.