Cold storage sells farmer’s 48,000 kg carrots without consent, ordered to pay Rs 31.5 lakh

A farmer won Rs 31.54 lakh after the Madhya Pradesh state consumer commission held cold storage provider liable for deficiency in service as it failed in safekeeping of the crops.

carrot beetroot farmer Madhya Pradesh State Disputes Redressal CommissionThe Madhya Pradesh state consumer commission ordered the cold storage provider to pay Rs 31.54 lakh to the farmer for its deficiency in service. (AI Generated Image)

The Madhya Pradesh State Consumer Disputes Redressal Commission has held a cold storage facility liable for deficiency in service and ordered it to pay a farmer Rs 31.54 lakh for allegedly selling over 48,000 kilogram of his carrots without consent and pocketing the profits.

President Justice (retired) Sunita Yadav and Member Monika Malik were hearing a plea filed by a farmer alleging that he had stored his crop carrots and beetroots worth Rs 40.19 lakh in cold storage but the facility sold it without his knowledge, claiming that the vegetables were rotten.

“It is obvious that farmers keep their products in cold storage to protect against loss due to getting the products spoiled/rotten on account of heat or other weather conditions. In this case, as discussed above, the opposite party-cold storage failed to keep the carrots and beetroots safe by keeping them at a suitable temperature, resulting in loss to the complainant, which comes under the purview of deficiency in service,” the June 25 order read, ordering the opposite party to pay the money within two months.

The farmer had alleged that he had kept his crop in the cold storage facility on different dates and the quantity comprised 450 bags of beetroots weighing approximately 42,379 kg, and a total of 1,033 bags containing 77, 250 kg of carrots.

About six months later, he learnt that the facility had “thrown away” his “rotten” vegetables, but upon enquiry he found out that the crop had been sold for a profit. The farmer complained of having lost a substantial part of his livelihood which led to monetary loss and mental agony suffered by his family.

The farmer also stated that on November 5, 2018, he had sent a legal notice to the cold storage providers, in reply to which they admitted that they had sold the crop. The farmer alleged “deficiency of service” by the providers and filed a consumer complaint seeking payout of Rs 90.19 lakhs, which included cost of crops along with compensation.

“From the record it is proved that the complainant deposited 1033 bags containing 77,250 kg carrots with the opposite party-cold storage. On calculation, it is found that one bag contains approx 75 kg. Out of 1033 bags, the complainant himself has received 387 bags of carrots from the opposite parties and the remaining bags were sold by the opposite parties. Therefore, the complainant is entitled to get the cost of carrots contained in 1033-387=646 bags, i.e., 646×75 kg comes to 48,450 kg of carrots,” the order held.

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Farmer didn’t return: Cold storage

Advocate Shivangi Trivedi, representing the cold storage facility, argued that at the time of storing the vegetables, the farmer was informed that the stock had already been affected by heat and it had to be sold immediately; otherwise it would be spoiled, but the farmer did not pay heed to their suggestion. Trivedi claimed that the farmer had sold a portion of his stock but did not collect the remaining vegetables lying in the storage, which were later sold on his instructions.

The counsel also stated that the farmer, after washing and drying the stock of carrots and beetroots, repeatedly kept it again in cold storage and the cold storage providers co-operated with him by paying for labour charges and keeping his stock safe. It was also argued that the farmer was not a farmer and was actually engaged in the business of selling crops.

Advocate Preetima Shrivastav, appearing for the farmer, argued that the farmer did not consent to the sale of the vegetables and asked why the storage facility accepted the “spoiled” stock and did not mention it in the receipts. The advocate argued that even if it was “presumed” that the stock was spoiled, the responsibility was on the storage facility to preserve the quality of the carrots and beetroots.

Monetary loss

The state commission did not agree with the storage facility’s claim that the farmer was not in the business of selling crops without backing it with proof. Besides, the cold storage provider couldn’t prove that the carrots and beetroots were already spoiled when the farmer brought them for storage, it added. The consumer body further found no evidence from the facility to show that the vegetables were sold with the consent of the farmer

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Holding that the farmer had suffered monetary loss and mental agony, the ruling pointed out that of the 1,033 bags of carrots, the farmer took 387 bags, and the remaining were sold by the cold storage facility.

The commission, as a result, ordered the facility to pay Rs 29.07 lakh towards the carrots and Rs 2.32 lakh for the rent charged for keeping the carrots in cold storage to the farmer.

“This complaint is allowed against the opposite parties…The cold storage shall pay a sum of Rs.29,07,000 towards the cost of 48,450 kg of carrots to the complainant within a period of 2 months from the date of this order. The opposite parties-cold storage shall also pay Rs.2,32,425 towards rent/fare charged from the complainant for keeping 1033 bags of carrots in cold storage to the complainant within a period of two months,” the order said.

The commission further ordered Rs 15,000 as compensation and costs, totalling Rs 31.54 lakh.

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Takeaway

The ruling establishes the obligation of companies to ensure proper services and that the concerns of the consumers must not be ignored, causing them unnecessary inconvenience. For consumer-related grievances, individuals may contact the consumer helpline in their respective states and union territories (Madhya Pradesh: 1800-233-0360) or call the National Consumer Helpline at 1915 for assistance.

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