For Timely Supply of Quality Seeds to Farmers at Affordable Prices, GO Overrides Private Vendors’ Right to Do Business: Karnataka HC

The Karnataka High Court recently dismissed a petition challenging the Government Order directing purchase of certified and properly labeled seeds (TL) only from government institutions.

Single judge K V Aravind dismissed the petition filed by M/s Karnataka State Certified Seed Producers Association and others as follows: “Having regard to the objectives and reasons stated in the Government Order to achieve qualitative, quantitative and affordable certified seeds and the aim of ensuring timely supply of seeds to farmers, the Court is not convinced that the exemption provided in the Government Order is prohibited by law.”

The petitioners have argued that they are engaged in the business of production, processing and marketing of TL seeds, that it involves huge investments at various stages and that the respondents’ decision to purchase TL seeds only from government agencies is both illegal and will deprive the petitioners of the obligation to carry. in their work.

It was also alleged that State institutions do not have the competence to supply TL seeds required for agricultural cultivation. Therefore, there will be a significant shortage of TL seeds, which will not only hamper agricultural activities but also deprive farmers of timely supply and planting.

The government maintained that the impugned order was issued in line with the larger objective of providing quality seeds to farmers on time and at affordable prices. Since the supply of TL seeds will be available in a short time during the monsoon season, the agriculture department is required to maintain adequate seed stock. Therefore, decision-making is in the interest of farmers and not in the interest of any commercial interest.

Although the complaint raised in the petition was invalidated because the 2017 decision was only in force for three years, the court was of the same opinion as the plaintiff argued that similar decisions were made after the previous decision had expired.

The bench noted that the preamble and reasons for issuing the Government orders were fourfold: supply of quality certified seeds, timely supply and meeting demand, price control and maintaining coordination with Government agencies to ensure maintenance of adequate stock.

Testing the above reasons against the propriety of invoking Section 4(g) of the Karnataka Transparency in Public Procurement Act, 1999, the Court concluded that the GO cannot be held to be arbitrary or biased. Held,

“There is no doubt that petitioners will have the right to pursue free trade and compete in business. However, while considering the right of the petitioners to conduct business, the object/objective sought to be achieved by the Government order requires preference. The steps taken by the government to supply quality seeds at a reasonable price and within a certain period of time will come before the right of the petitioners to continue their business.”

He added:The large investments made by the petitioners in the business are of little importance when compared to the justifications in the impugned decision.”

The court also took cognizance of the submission made by the State that the total quantity of seeds of different crops required in the State was 15.73 lakh quintals. Out of the total amount required, MoUs have been signed with Government agencies for the supply of 6.93 lakh penta seeds and the balance of 8.08 lakh penta seeds are up for tender and the petitioners are eligible to participate in the tender process.

Accordingly, he dismissed the petition.

Appearance: Counsel for RS Hegde for the Petitioners.

AGA SH Raghavendra for the participants.

Quote Number: 2024 LiveLaw (Snow) 478

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

WRITE A PETITION Case No: 31329/2017.

Click Here to Read/Download the Order