MALAPRABHA NEERWARI BALAKEDARARA IRRIGATION CONSUMER CO OPERATIVE SANGHA LTD Vs. STATE OF KARNATAKA DEPARTMENT OF AGRICULTURE

JUDGEMENT

(1.) THE complainant, a society registered under the Societies Registration Act, 1964, is a voluntary organisation of the irrigation farmers of Arekurahatti Village, Dharwar District. Its object and purpose thereof include the protection and advancement of claims and interests of the said farmers as consumer of goods. It has 201 members. The society has been authorised by the general body to get redress of grievances of the farmers of the society.

(2.) THE first opposite party is the State of Karnataka represented by its Secretary to the Department of Agriculture while the second opposite party is the Director in the Department of Agriculture under the State of Karnataka, the third opposite party is Assistant Director of Agriculture under the second opposite party and similarly the 4th opposite party is the Assistant Director of Agriculture (Cotton). The 5th opposite party (hereinafter referred to as the Company) is registered under the Companies Act as a public limited Company with its registered office at Adalat Road, Aurangabad in Maharashtra. The said Company is engaged inter alia in the business of production/manufacture of variety of seeds and distribution of the same throughout the country, either through its branch offices or authorised agents. In Karnataka, it possesses a wide network to pursue its said business and is also a licensed dealer of cottonseeds, under the Karnataka Cotton Act of 1964. The 6th opposite party is a representative of the Company at its Branch Office in Hubli while the 7th opposite party is the Managing Director and Chairman of the Company and is incharge of the overall administration and management of the Company.

(3.) IT is the further case of the Complainant that the 6th opposite party, who is the Marketing Manager, became helpless to the ire of farmers. It is believed that he immediately contacted the Head Office at Aurangabad, which did not initially take cognizance of the matter. However, when the pressure from the farmers mounted and the issue assumed to blow up into a public scandal, the Company, to show concern, sent a team of experts to study the matter on spot. The inspecting team visited village Arekurahatti, wherein they met the farmers and also visited the fields of each of the farmers separately. During the said visit of the inspecting team, the farmers angrily cross-examined the members of the team, who were neither in a position to advise the farmers, nor were they authorised to suggest any immediate remedy. Thus, the Company itself, in a suspicious manner, withdrew its responsibility even to advise the farmers at this stage also. Village Arekurahatti this season had received the normal annual rainfall and water through the canal has been supplied without any interruption during the season. The village has not experienced any natural hazard or calamity. Moreover, the farmers, due to the early reports of the pests in the plants, took extra care and caution to fight the same. The farmers were compelled to seek help at the Local Self Government level. The Zilla Parishad of Dharwad, upon such request as well as due to the public pressure sent its standing committee on agriculture and animal husbandry to investigate and enquire into the facts relating to 'Shivnath' seeds. The committee was also accompanied by Dr. S.N. Kaddappah, Senior Scientist Cotton, South Zonal Coordinator. The committee among other villages visited Arekurahatti on 21st December, 1988 and inspected the fields. It also held conferences with the farmers and examined some of them. The committee also made the comparative study of 'Shivnath' and 'DCH 32' crop standing in the fields of Lakkannavar and Mulgund. The committee had also examined the Zonal Manager of the Company. The committee upon deliberations concluded that, the Company has supplied spurious seeds under the brand name of 'Shivnath' and consequently, the farmers have suffered heavy losses. The farmers who had sown cotton seeds under the brand name of 'Shivnath' had suffered heavy losses due to its inferior and defective quality. The yield of cotton has not been more than 3 quintals per acre in any of the said lands. Even this cotton has no price in the market due to its short staple growth. The price of so produced cotton is between Rs. 800/- to Rs. 1,000/- in Hubli market as against Rs. 1400/- to Rs. 1600/- for 'DCH 32' cotton at Hubli market.