GO For Timely Supply Of Quality Seeds To Farmers At Reasonable Price Prevails Over Private Sellers' Right To Carry Business: Karnataka HC

The Karnataka High Court recently dismissed a petition challenging a Government Order directing purchase of certified and truthfully labelled seeds (TL) only from government agencies.

A single judge K V Aravind dismissed the petition filed by M/s Karnataka State Certified Seed Producers Association and others stating, “Having regard to the object and the reasons stated in the Government Order to achieve the qualitative, quantitative and affordable certified seeds and the object of attaining timely supply of seeds to the farmers, the Court is not convinced to hold that the exemption provided in the Government Order is impermissible in law.”

The petitioners contended to be in the business of production, processing and marketing of TL seeds, involves huge investments at various stages and the decision of the respondents to purchase TL seeds only from government agencies is not only illegal but would also deprive the petitioners of carrying on their business.

Further, it was argued that Government agencies lack the competence to supply the required TL seeds for agricultural cultivation. Due to this, there would be a significant shortage of TL seeds, which would not only hamper agricultural activities but also deprive the farmers of timely supply and cultivation.

The government contended that the impugned order was issued with a larger objective of supplying quality seeds on a timely basis and with an affordable price to the farmers. As the supply of TL seeds is to be achieved within a short period during the monsoon season, the agricultural department has to maintain a sufficient stock of the seeds. Thus decision take is in the larger interest of the farmers and not with any commercial interest.

Though the grievance raised in the petition was rendered infructuous as the order issued in 2017 was in operation only for three years, the court considered the same as petitioner submitted that similar orders are issued after expiry of the previous order.

The bench noted that the preamble and the reasons for issuing Government orders are fourfold—to supply quality certified seeds, timely supply and to meet the demand, price control, and to maintain coordination with the Government agencies to ensure sufficient stock is maintained.

Testing the above reasons on the correctness of invoking Section 4(g) of the Karnataka Transparency in Public Procurements Act, 1999, Court found the GO cannot be held to be arbitrary or biased. It held,

“There is no doubt that the petitioners would be entitled to carry on free trade and to compete in the business. However, while considering the petitioners' right to carry on the business, the object/purpose sought to be achieved through the Government order needs preference. The steps taken by the Government to supply quality seeds for a reasonable price in a time-bound manner would prevail over the rights of the petitioners to carry on their business.”

It added “The petitioners' huge investments in the business are of little consequence if compared with the reasons in the impugned order.”

The court also took note of the submission made by the State that the total quantity of seeds of different crops required in the State is 15.73 lakh quintals. Out of the total required, MoU is entered with the Government agencies for supply of 6.93 lakh quintals of seeds and the balance of 8.08 lakh quintals of seeds is open for tendering and the petitioners are entitled to participate in the tender process.

Accordingly, it dismissed the petition.

Appearance: Advocate R S Hegde for Petitioners.

AGA S H Raghavendra for Respondents.

Citation No: 2024 LiveLaw (Kar) 478

Case Title: M/S KARNATAKA STATE CERTIFIED SEED PRODUCERS' ASSOCIATION & Others And State of Karnataka & Others

Case No: WRIT PETITION No. 31329/2017.

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