ORDER
P.S. Narayana, J.
1. This Court ordered notice before admission on 12.10.2007. Counter-affidavit is filed.
2. M/s. Sri Sai Agritech, represented by its proprietor, filed the present writ petition for a writ of mandamus to declare the Proceedings No. SR Cell (1) 264/2007, dated 4.7.2007 of the second respondent and as confirmed by the first respondent in proceedings dated 18.8.2007, as being illegal, irregular, unreasonable, arbitrary exercise of powers in gross violation of principles of natural justice apart from being contrary to the provisions of the Seeds Act, 1966 (hereinafter in short referred to as 'the Seeds Act') and the Seeds (Control) Order, 1983 (hereinafter in short referred to as 'the Control Order') and consequently, set aside the same with a further direction to the respondents to restore the licence and renew the same and pass such other orders.
3. Sri S. V. Bhatt, the learned Counsel representing the writ petitioner, had taken this Court through the affidavit and the counter-affidavit and also the relevant clauses of the Control Order and would submit that in view of the facts and circumstances, it is clear that an opportunity of being heard as specified under Clause 15 of the Control Order had not been complied with. It would be appropriate to set-aside these orders and give an opportunity to the petitioner to make an application in accordance with law and let the competent authority consider such application not being influenced by the observation, if any made already, in the proceedings in question. The learned Counsel had drawn the attention of this Court to the relevant clauses of the Control Order and also the relevant provisions of the Seeds Act.
4. Per contra, the learned Government Pleader for Agriculture had taken this Court through the contents of the counter-affidavit filed by the second respondent and would maintain that in the light of the reasons recorded, this is not a fit case to be interfered with by a writ Court. The learned Government Pleader also would maintain that virtually what had been prayed is a writ of certiorari though in the relief column it was specified as a writ of mandamus and in the light of the facts and circumstances, this is not a fit case where the certiorari jurisdiction to be exercised.
5. Heard the Counsel and perused the material placed before this Court.
6. It is averred that the petitioner is an agricultural graduate and ventured to start self employment and therefore, started a seeds business in the name and style as M/s. Sri Sai Agritech, plot No. 254, Shop No. 1, Sri Venkateshwara Nilayam, Bhagiratha Colony, Mahabubnagar. The petitioner obtained a licence from the competent authority-second respondent i.e. the licence to carry on the business of the dealer in seeds vide licence bearing No. 83 dated 26.6.2001. As per the licence, the sale premises is Plot No. 254, Shop No. 1, Sri Venkateswara Nilayam, Bhagiratha Colony, Mahabubnagar. The processing, packing and storage premises for the business is Door No. 1-133, Amistapur Village, Bhoothpur Mandal, Mahabubnagar District.
7. It is also stated that the Control Order was issued by the Central Government under the powers conferred by Section 3 of the Essential Commodities Act, 1955. The said Order came into force on 30.12.1983. Clause 3 of the Control Order deals with the dealer to obtain licence and no person shall carry on the business of selling, exporting or importing seeds at any place except under and in accordance with the terms and conditions of the licence granted to him. Clause 6 of the Control Order prescribes that the validity of licence is for a period of three years from the date of its issue and Clause 7 of the Control Order deals with the renewal of licence. Form-'A' is a form of application to obtain dealers' licence and this form is under clause 4 of the Control Order. Form-'B' deals with the terms and conditions of licence. Form-'C deals with the renewal of licence under Clause 7 of the Control Order.
8. It is also stated that the petitioner submitted an application for a licence and the same was granted on 26.6.2001 and it was renewed from time to time and it was renewed upto 25.6.2007.
9. It is also stated that on 15.3.2007 at about 12.30 p.m., the Assistant Director of Agriculture, Jedcharla, Mahabubnagar District has conducted the inspection at the petitioner's processing, packing and storage premises at Door No. 1-33, Amistapur, Bhoothpur Mandal, Mahabubnagar District and seized the seeds by conducting a panchanama and taken sample of seeds of Sindhu Hybrid cotton bulk seed and Dharma bulk seed and sent the samples to the laboratory for testing. The Seed Inspector attached to the Office of the Assistant Director, Jedcharla submitted a report in Form No. III pointing out the defects of the seed packets and issued seizure order in Form No. IV and as per the order, five items were seized.
10. Further it is averred that the petitioner submitted a representation to the Commissioner and Director of Agriculture, Hyderabad, with a request to take another sample since the Assistant Director of Agriculture, who has taken the samples has a grudge against the petitioner and accordingly the Commissioner and Director of Agriculture, Hyderabad has issued orders on 31.3.2007 by deputing three officers as special squad. They are viz., Sri N.S. Saxena, Deputy Director of Agriculture, Sri V. Siva Prasad, Assistant Director of Agriculture, Office of the Commissioner and Director of Agriculture and Sri P. Jaya Krishna and A.O., D.N.A. Finger Printing Laboratory and they have visited the petitioner's business premises on 1.4.2007 and again taken the samples by conducting a panchanama, which are again sent for testing to the Seed Testing Laboratory, Yemmignur, Kurnool District.
11. Further it is stated that the second respondent vide proceedings dated 30.3.2007 has suspended the licence of the petitioner on the ground that the petitioner is in unauthorized possession of cotton seed stocks. It is alleged that the petitioner was found to be in possession of unlicensed stock of seed of dharma Bt cotton (470 Kgs), Sindu Bt cotton (1300 Kgs) cotton seed stocks of M/s. Kisan Biogenes, Raj Bhavan Road, Hyderabad (122 packets) and cotton seed stocks of M/s. Indian Biogene Limited, Hyderabad (46 packets) and therefore, observed that it is violation of Clause 3(1) of the said Control Order, since the licence does not include these varieties/hybrids. It is also observed in the said orders dated 30.3.2007 the petitioner's firm has involved in deliberate production of genetically modified seed (Bt cotton seed) without permission. Therefore, it is violation of Rule 7(1), 8 and 9 (1) of Rules for the manufacture, use/import/export and storage of hazardous micro-organisms or cells 1989 under Environmental Protection Act, 1986. It is also alleged that seed stocks were expired and no proper documents were produced indicating their disposal and it is held that it is violation of Clause 8-A of the Control Order.
12. Further it is stated that before suspension orders, a show-cause notice dated 16.3.2007 was issued and detailed explanation was submitted on 24.3.2007 denying all the allegations and thereafter, the suspension order dated 30.3.2007 was issued. The show-cause notice dated 16.3.2007 reads as hereunder:
SR Cell (1) 937/2004 16.3.2007Commissionerate of AgricultureHyderabadSHOW-CAUSE NOTICESub:-Seeds-M/s. Sri Sai Agritech, Mahabubnagar- Unauthorized possession of cotton seed stocks-Show-Cause Notice -Issued-Regarding.
Ref:-Inspection of premises of M/s. Sri Sai Agritech, Bhoothpur Mandal, Mahabubnagar District by a special squad from O/o. Commissionerate of Agriculture on 15.3.2007.
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It is brought to the notice of the undersigned that M/s. Sri Sai Agritech, Bhoothpur Mandal, Mahabubnagar District is found possessed the following stocks of seed in the processing, packing and storage premises of M/s. Sri Sai Agritech located at Door No. 1-133, Amistapur (V), Bhoothpur Mandal, during the inspection of the premises vide reference cited.
Seed stocks for which licence is not issued: Dharma Bt. Cotton-470 Kgs, Sindhu Bt. Cotton-1300 Kgs. Cotton seed stocks of M/s. Kisan Biogenes, Rajbhavan Road, Hyderabad-122 packets, cotton seeds stocks of M/s. Indian Biogene Ltd., Hyderabad-46 packets.
Seed stocks with expiry of validity: Cotton-Dharma-420 packets, Cotton-Sindhu-340 packets, Sunflower-Rahul-288 packets, Jowar-Bapuji-21 quintals.
In this connection, it is informed that Centralized Seed Licence bearing No. 83 valid upto; 25.6.2007, granted to M/S Sri Sai Agritech, Mahabubnagar does not include above said Bt Cotton hybrids and cotton varieties of M/s Kisan Biogenes, Rajbhavan Road. Hyderabad and M/s Indian Biogene Ltd, Hyderabad and these 2 firms are also not licensed in the State to produce and market seed. Hence, possession of such seed stocks is a violation of Clause 3(1) of Seeds (Control) Order, 1983.
Further, it is established that the firm has involved in deliberate production of genetically modified seed (Bt cotton seed) without following the procedures laid down by GEAC (Genetic Engineering Approval Committee) and seeking the permission from GEAC and keeping the Licensing Authority absolutely uninformed which is a violation of Rule 7(1), 8 and 9(1)of Rules for the Manufacture, Use/Import/Export and storage of Hazardous Micro-organisms/Genetically Engineered Organisms or Cells, 1989 under Environmental Protection Act, 1986.
Besides, it is found that seed stocks of cotton were expired and no proper documents were produced indicating their disposal, which is viewed as intention of the firm for sale of the expired seed, thus it is a violation of Clause 8(A) of Seeds (Control) Order, 1983 that attracts suitable action under Clause 15(b) of Seeds (Control) Order, 1983.
In view of the above contraventions, M/s Sri Sai Agritech, Mahabubnagar is directed to show the cause, why the licence should not be cancelled or suspended under Clause 15(b) of Seeds (Control) Order, 1983 by the Licensing Authority, for the violations committed by the firm.
The explanation of the firm should reach this office within a period of 7 days from the date of receipt of this show-cause notice and in case of non-receipt of explanation within stipulated period, it is construed that M/s. Sri Sai Agritech, Mahabubnagar has nothing to say and the action will be initiated under the provisions of seed laws, without any further notice. Sd/- D. RushendranathLicensing Authority and AdditionalDirector of Agriculture II
13. The order of suspension dated 30.3.2007 reads as hereunder:
Proceedings of the Licensing Authority and Additional Director of Agriculture II, Office of the Commissioner and Director of Agriculture, Andhra Pradesh, Hyderabad.
SR Cell (1) 264/2007 Dated 30.3.2007Sub:-Seeds-M/s. Sri Sai Agritech, Mahabubnagar, Unauthorized possession of cotton seed stocks- Opportunity of being heard given- Explanation found unsatisfactory-Licence suspended- Orders issued-Regarding.
Ref-(1) Inspection of premises of M/s. Sri Sai Agritech, Bhoothpur Mandal Mahabubnagar District by a special squad from O/o. Commissionerate of Agriculture on 15.3.2007.
(2) Show-cause notice issued to M/s. Sri Sai Agritech, Bhoothpur Mandal, Mahabubnagar District vide Letter No. SR Cell (1) 937/2004 dated 16.3.2007.
(3) Reply to M/s. Sri Sai Agritech, Bhoothpur Mandal, Mahabubnagar to the show-cause notice dated 24.3.2007.
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Through the reference 2nd cited, a show-cause notice was issued to M/s. Sri Sai Agritech, Bhoothpur Mandal, Mahabubnagar since the firm is found to possess the unlicensed stocks of seed of Dharma Bt cotton (470 Kgs). Sindhu Bt cotton (1300 Kgs), cotton seed stocks of M/s. Kisan Biogenes, Rajbhavan Road, Hyderabad (122 packets). Cotton seed stocks of M/s. Indian Biogene Ltd, Hyderabad (46 packets) in the processing, packing and storage premises of M/s. Sri Sai Agritech located at Door No. 1-133, Amistapur (V), Bhoothpur Mandal, during the inspection of the premises vide reference 1st cited which is a violation of Clause 3(1) Seeds (Control) Order, 1983 since the centralized seed licence bearing No. 83 valid upto 25.6.2007 granted to M/s. Sri Sai Agritech, Mahabubnagar does not include these varieties/hybrids.
Based on this, it is also evident that the firm has involved in deliberate production of genetically modified seed (Bt cotton seed) without following the procedures laid down by GEAC (Genetic Engineering Approval Committee) and seeking the permission from GEAC and keeping the Licensing Authority absolutely uninformed which is a violation of Rules 7(1), 8 and 9(1) of Rules for the Manufacture, Use/Import/Export and Storage of Hazardous Micro-organisms/Genetically Engineered Organisms or Cells, 1989 under Environmental Protection Act, 1986.
Besides, it is found that seed stocks of Cotton Dharma (420 packets), Cotton Sindhu (340 packets), Sunflower Rahul (288 packets), Jowar Bapuji (21 quintals) were expired and no proper documents were produced indicating their disposal, which is viewed as intention of the firm for sale of the expired seed, thus it is a violation of Clause 8A of Seeds (Control) Order, 1983 that attracts suitable action under Clause 15(b) of Seeds (Control) Order, 1983.
In reply to the show-cause notice furnished by the firm vide reference 3rd cited is analyzed and found unsatisfactory and unmaintainable.