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M/s Shyam Beej Bhandar & Anr. Etc. v. Suresh Etc.

Civil Appeal · 2026 INSC 158Decided 5 Feb 2026
C.A. No.-013749-013755 - 2024
Justice B.V. Nagarathna · Justice Ujjal Bhuyan

Background

A group of Rajasthan farmers bought groundnut seeds from the appellant seed dealers in June 2013, but the crop failed to yield properly, prompting them to file consumer complaints alleging substandard seeds. The District Consumer Forum ruled in the farmers' favour and awarded compensation; the State Commission reversed this in the dealers' favour; and the National Consumer Disputes Redressal Commission (NCDRC) then reinstated the District Forum's order against the dealers, prompting the seed sellers to appeal to the Supreme Court.

Decision Breakdown

The Supreme Court examined the original government inspection report from 2013, which found that only about 50% of the seed pods had fully developed while the rest were semi-developed, and also noted that excess rainfall that season had contributed to a natural shortfall in yield across similar crops in the region, indicating the crop failure was only partly attributable to seed quality and partly to weather (a force majeure-type factor). Because the evidence showed a mixed picture rather than complete deficiency of service by the seed sellers, the Court held that the lower fora had erred in fastening full liability and full compensation onto the appellants. It modified the orders to direct that only 50% of the compensation amount already deposited (with any accrued interest) be released to the farmers, with the remaining 50% refunded to the seed sellers.

Lesson Learnt

In consumer disputes over agricultural inputs, compensation should be proportionate to the actual, evidence-based extent of the defect. Where an inspection report shows the shortfall was caused partly by natural factors like weather and only partly by a genuine product defect, courts will apportion liability rather than holding the seller fully responsible.

Official source (sci.gov.in)View Judgment (PDF)

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