Bombay High Court
Maharashtra Hybrid Seeds Co. (Pvt.) ... vs The State Of Maharashtra, Rep. By The ... on 21 February, 2018
Equivalent citations: AIR 2018 BOMBAY 81
Author: R.K. Deshpande
Bench: R.K. Deshpande, M.G. Giratkar
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR
WRIT PETITION NO.8157 of 2017
Maharashtra Hybrid Seeds Co. (Pvt.) Ltd.,
National Highway No.6,
At Post Dhanora - 443 401,
Tq. Nandura, Dist. Buldhana,
Maharashtra,
through its Authorized Signatory
Mr. Shailendra Bagrao. ... Petitioner
Versus
1. The State of Maharashtra,
Rep. By the Secretary,
Agriculture, Animal Husbandry,
Dairy Development & Fisheries
Department, Mantralaya Annexe,
Mumbai - 400 032.
2. The Seed Inspector,
Inspector Seed/Fertiliser/Insecticide
Code No.220123 and
District Quality Control Inspector,
C/o District Superintending Agriculture
Officer,
Buldhana, Maharashtra.
3. The District Superintending Agricultural
Officer,
District Buldhana,
Maharashtra. ... Respondents
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Shri Sunil Manohar, Senior Advocate, assisted by
Shri A.A. Naik, Advocate for Petitioner.
Shri M.J. Khan, Assistant Government Pleader for Respondents.
CORAM : R.K. DESHPANDE & M.G. GIRATKAR, JJ.
DATE OF RESERVING THE JUDGMENT : 8-2-2018
DATE OF PRONOUNCING THE JUDGMENT : 21-2-2018
JUDGMENT (Per : R.K. DESHPANDE, J.) :
1. The petitioner is a Company registered under the provisions of the Companies Act, 1956 and is engaged in the business of research, production, processing, marketing and sale of variety of hybrid seeds. The respondent Nos.1 to 3 are the authorities under the State Government exercising the control over the quality and quantity of agricultural inputs, processing, marketing and sale of seeds undertaken by the Companies, like the petitioner. The respondents perform their powers, functions and duties, as are conferred upon them, under the provisions of the Seeds Act, 1966, the Seeds Rules, 1968, the Seeds (Control) Order, 1983, the Maharashtra Cotton Seeds (Regulation of Supply, ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 3 wp8157.17.odt Distribution, Sale and Fixation of Sale Price) Act, 2009 and the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Rules, 2010.
2. The processing of cotton and non-cotton seeds of different varieties is done by the petitioner-Company in its processing unit located at Dhanora, Tehsil Nandura, District Buldana. All such processed seeds are then stored in the storage attached to it. The activity of weighment, packaging and labeling of all such seeds in different weighments is carried out in this storage. The packed and labeled seeds are thereafter forwarded to different storages located at various places, like Pune, Jalna and Akola, through which they are put in the network of marketing.
3. The business of selling, keeping for sale, offering to sell, bartering or otherwise supplying any seed of any notified kind or variety other than cotton seeds, is regulated by Section 7 of the Seeds Act, 1966, and it is controlled by the Seeds (Control) Order, 1983. As per Clause 3 of the Seeds (Control) Order, no person can carry on the business of selling, exporting or importing seeds at any ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 4 wp8157.17.odt place except under and in accordance with the terms and conditions of licence granted to him in Form B under Clause 5 of the said Order. Form B under the Seeds (Control) Order is reproduced below :
"FORM B (See clause 5) LICENSE TO CARRY ON THE BUSINESS OF A DEALER IN SEEDS License No. .............. Date ...................
Subject to the provisions of the Seeds (Control) Order, 1983 and to the terms and conditions of this license Shri/M/s. ....................... is hereby granted license to sell, export, import and store for the said purposes of seeds.
2. The licensee shall carry on the aforesaid business at ....................... (Place for storage and place for sale) ........................... (Tehsil or District) ......................
Date .....................
Seal:
Licensing Authority State of ...................
Terms and conditions of license:--
(i) The license shall be displayed at a prominent and conspicuous place in a part of the business premises open to the public.
(ii) The holder of the license shall comply with the provisions of the Seeds (Control) Order, 1983 and the notifications issued thereunder and for the time being in ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 5 wp8157.17.odt force.
(iii) This license comes into force with immediate effect and shall be valid upto ...................... unless previously cancelled or suspended.
(iv) The holder of the license shall, from time to time, report to the licensing authority any change in the premises where he carried on his business of sale, export, import or storage for the said purposes seeds.
(v) The licensee shall given every facility to the licensing authority or any other Officer acting under his authority for the purpose of inspecting his stock in any shop, depot or godown or other place/places used by him for the purpose of storage, sale or export of seeds."
Clause 2(c) of the Order defines "dealer" means a person carrying on the business of selling, exporting or importing seeds, and includes an agent of a dealer. The authority to issue licence in Form B is the Director of Agriculture, Pune.
4. So far as the cotton seeds are concerned, the same are regulated by the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Act, 2009. Section 11 therein requires every person desirous of conducting the business of sale in cotton seeds shall apply to the Controller for ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 6 wp8157.17.odt grant of licence in such form as may be prescribed. "Prescribed" means prescribed by rules made under the Act. Rule 4 of the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Rules, 2010 deals with the application for grant of licence, and sub-section (1) therein states that every person desirous of conducting the business of sale in cotton seed shall make an application to the Controller for grant of licence, in duplicate, in Form A together with a fee of Rupees Five Hundred. After making such inquiry, as the Controller deems fit, a licence can be granted under Rule 5 in Form B, which remains valid for a maximum period of three years, as per Rule 6 therein. Form B under the Rules is reproduced below :
"FORM 'B' (See rule 5) LICENSE TO CARRY ON THE BUSINESS OF SALE OF COTTON SEEDS Licence No.:
Date of Issue :
Valid upto :
Subject to the provisions of the rule 9 of the Maharashtra Cotton Seeds (Regulation of supply, distribution, sale and fixation of sale price) Rules, 2010 and to the terms and conditions of this Licence, ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 7 wp8157.17.odt M/S. ................................................ is hereby granted licence to sell and store for the said purpose of seeds in the State of Maharashtra.
The holder of this Licence shall carry on the aforesaid business at;
SALE at STORAGE at
Details of Cotton Seeds to be Handled
Sr.No. Name of Cotton Variety
Notified Non notified
TERMS AND CONDITIONS OF LICENCE :--
1. The Licence shall be displayed at a prominent and conspicuous place in a part of the business open to the public.
2. The holder of the Licence shall comply with provisions of the Maharashtra Cotton Seeds (Regulation of supply, distribution, sale and fixation of sale price) Act, 2009 and the Maharashtra Cotton Seeds (Regulation of supply, distribution, sale and fixation of sale price) Rules, 2010, and the notifications issued thereunder -
Period of validity is mentioned in the licence.
3. The holder of the Certificate of Registration shall, from time to time, report to the Controller any change in the places where he carries on the business of sale or storage of cotton seeds.
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4. The holder of the Licence shall give every facility to the Controller for the purpose of inspecting his stock in any shop, depot or godowns or other/ places used by him for the purpose of storage of cotton seeds.
5. The terms and conditions specified in approval letter of the Genetical Engineering Approval Committee, if any shall apply.
Controller ......................................" The renewal of licence is done under Rule 7 in Form D. The authority to issue licence or grant its renewal under the aforesaid provision is that of the Director of Agriculture, Pune.
5. It is the case of the respondents before us that on the basis of the confidential information said to have been received by the respondents the Roundup Ready Flex Hybrid Cotton ("RRF Hybrid Cotton") are stored in the godown of the petitioner, the inspection was conducted of the godown of the petitioner located at Dhanora, Tehsil Nandura, District Buldana, on 8-12-2017 through local police. During the course of inspection, the suspected seeds of RRF Hybrid Cotton were observed and, therefore, the godown was ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 9 wp8157.17.odt partly sealed. The plant in-charge of the petitioner was immediately informed to furnish the crop-wise, variety-wise and lot-wise stock details of the seeds and also the stock details of various godowns of the petitioner. Some of the details were furnished on 10-12-2017. The samplings of suspected seed stock were taken and the godown at Dhanora was sealed on 15-12-2017, and this action is the subject-matter of challenge in this petition.
6. Initially, notice was issued by this Court on 20-12-2017, and on 22-12-2017, after hearing the parties, this Court passed an order as under :
" The matter was heard due to the urgency shown by the petitioner. The learned Additional Government Pleader with respondent officers has also cooperated.
2] We find need of proper affidavit on record before evaluating the controversy about need of licence for storage or processing of seeds in dispute.
3] The disputed seeds are cotton seeds roughly about 90,000 quintals stored by the petitioner. The petitioner ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 10 wp8157.17.odt claims that the same are not for sale but only for processing and therefore exempt from possessing licence. The other disputed seeds are RRF Cotton seeds. The petitioner claims that these seeds are only for testing and not for sale. According to the respondent, these RRF biologically modified seeds are prohibited and cannot be used.
4] The entire go-down of the petitioner which contains other commodities has been sealed.
5] Hence, without observing anything on merits of the controversy and as agreed during arguments, we direct that the representatives of the petitioner and respondent nos.1 to 3 shall on 23-12-2017 at 10.00 am at place Dhanora, taluka Nandura, District Buldhana open the seal of go-down and with the assistance of labour and equipments provided by the petitioner along with one Assistant Sub Inspector and one Police Constable. In presence of officers of the respondents the disputed seeds mentioned supra shall be segregated and piled up separately in separate part of go-down of the petitioner only. The panchanama of such segregated quantity and stocks shall be drawn and signed by the parties. If necessary, video shooting can be undertaken at the cost of the petitioner.::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 11
wp8157.17.odt 6] The segregated stocks on panchanama shall continue in possession of respondent no.2-Seed Inspector through it will be stored in the go-down of petitioner until further orders.
7] It is not in dispute, that the requisite samples for testing of disputed seeds are already drawn by the department and hence storage thereof in go-down of the petitioner is not going to create any problem.
8] This process shall be completed as early as possible. After the stocks are segregated and piled up separately, it is open to the petitioner to use the other part of his go-down for its activities and processing unit as before.
9] List the matter for further consideration on 08-01-2018.
10] The respondents to file their reply affidavit in the meanwhile.
11] Steno copy of this order be provided to the parties to act upon."::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 12
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7. On 24-1-2018, when the matter was listed before this Court, it was a complaint made that in spite of the order dated 22-12-2017, the godowns are not opened for functioning. After hearing the learned counsels appearing for the parties at length, we again passed an order on 24-1-2018 as under :
" We have heard Shri Sunil Manohar, learned Senior Advocate assisted by Shri A.A. Naik, learned Advocate for the petitioner and Shri Khan, learned Assistant Government Pleader for the respondents at length.
The seed processing unit of the petitioner at Dhanora has been sealed and in spite of our order dated 22-12-2017, it is not opened for functioning. The action of sealing is sought to be supported by a plea that there is a godown at Dhanora where packed and sealed seeds are stored without having any licence as required to be obtained in Form-D under clause 7(3) of Seeds Control Order.
It is not in dispute that the petitioner is having licence in Form-D in respect of their godowns from which the activity of sell of seeds is carried out. We put a specific question to the learned Assistant Government Pleader to ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 13 wp8157.17.odt point out to us requirement of obtaining licence in Form-D in respect of the godown at the processing unit. We also asked him to point out any statement in the reply to the effect that the petitioner is carrying out the activity of sell of seeds from the godown at Dhanora. Our attention is invited to paragraph 12 of the reply filed by the respondents from which prima facie it does not seem to us satisfying the queries.
Learned Assistant Government Pleader therefore seeks time in this matter till 30-1-2018 to make a positive statement as to what steps the respondents intend to take to implement the order dated 22-12-2017 passed by this Court.
Put the matter on 30-1-2018.
Steno copy of this order be supplied to learned Assistant Government Pleader."
8. On 30-1-2018, we again passed an order as under :
" We are unable to get answers to our queries from the learned A.G.P. Prima facie, we think that certain facts are being twisted and picture is not made clear to reduce the controversy. We, therefore, direct the Director of Agriculture, ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 14 wp8157.17.odt Pune, under whose supervision the activities complained of in the petition are being carried out, to remain personally present before us on 8th February, 2018.
Mr. Sunil Manohar, learned Senior Advocate appearing for the petitioner invites our attention to the show cause notice dt.24.1.2018 regarding cancellation of license. We hope that no further proceedings shall be carried out in response to the show cause notice.
Stand over to 8th February, 2018."
Accordingly, the Director of Agriculture, Pune is personally present before us for providing instructions.
9. It is not the case that the petitioner-Company does not possess the licence in Form B under Clause 5 of the Seeds (Control) Order for the storage of non-cotton notified seeds. The petitioner-Company admittedly possesses the renewal licence in Form D under Rule 7(3) of the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Rules, 2010 dealing with the conduct of business of sale and ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 15 wp8157.17.odt storage related to the cotton seeds. It is admitted in said reply that there are three sale points and three storage points incorporated in the licence along with their addresses, which are permitted, as per the licence in favour of the petitioner to conduct the sale of cotton seeds at Pune, Jalna and Akola.
10. It is further admitted that for the purpose of processing, no independent permission or licence is required either under the Seeds Act, 1966 or the Seeds Rules, 1968. It is also admitted that the petitioner is having Dhanora Processing Plant and running the same under the licence issued under the Factories Act, 1948. The activity permissible at Dhanora godown in favour of the petitioner is only to the extent of processing under Clause 2(j) of the Seeds Rules, 1968, which does not including packaging and labeling.
11. In the affidavit-in-reply dated 8-2-2018, it is admitted by the respondents that the petitioner-Company was accorded permission by GEAC to undertake confined BRL II field trial of "Ballgard II x Rounduf Ready Flex (BG II RR Flex) Cotton Hybrid"
was only for a stipulated period of three years in the year 2010. It ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 16 wp8157.17.odt is urged that it cannot be treated as an authority to retain GE material even after the evaluation by GEAC was terminated.
12. The reason for sealing the godown at Dhanora, as we get it from the reply, is that during the course of inspection, it was found that the suspected RRF Hybrid Cotton Seeds were stored in the godown attached to the processing unit. According to the respondents, the samples from disputed stock are taken and sent to the Seed Testing Laboratory for RRF testing and till the receipt of report of testing, the processing of disputed stock cannot be permitted. It is stated that if samples are found to be misbranded within the meaning of definition contained in Section 12, sub- section (2) of the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Act, the further action will have to be initiated. It is also the stand taken that the godown at Dhanora needs the registration of Genetical Engineering Approval Committee (GEAC), Central Government, New Delhi, and till the date the petitioner did not submit the permission, if granted, by GEAC for the stock of RRF Hybrid Cotton Seeds kept at Dhanora godown.
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13. It is stated in the reply that there was no licence obtained in Form B under Rule 5 of the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Rules, 2010 in respect of the storage at Dhanora. It is the stand taken that there is a violation of Condition No.(iv) in the licence issued in Form B under Clause 5 of the Seeds (Control) Order, 1983 in failing to report the Licensing Authority any change in the premises where the business of sale, export, import or storage for the purposes of sale is being carried out.
14. It is stated in reply that the intention of the petitioner-Company is to carry out illegal activity of storing and selling the non-permitted seeds of RRF Hybrid Cotton and also other non-permitted seeds of various kinds. It is the stand taken that activity of packaging and labeling of all kinds of seeds at Dhanora godown amounts to preparation of the seeds for sale or business of keeping for sale or offering to sell, as contemplated by Section 7 of the Seeds Act, which requires a licence to be obtained in Form B under Clause 5 of the Seeds (Control) Order. It is urged ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 18 wp8157.17.odt that the action of such storage without licence is illegal.
15. The parties have filed before us rejoinder, replies and affidavits. We have heard the learned counsels at length and we feel that the controversy mainly revolves around the following questions :
(1) Whether a separate licence was required to be obtained for storage of seeds in the godown attached to the processing unit at Dhanora, either in Form B under Clause 5 of the Seeds (Control) Order, 1983 for non-cotton seeds, or in Form B under Rule 5 of the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Rules, 2010 for storage of cotton seeds?
(2) Whether the respondents had an authority to seal the godown and to continue to keep it as sealed till the report of samplings is received from the Laboratory for testing?::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 19
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16. It is not in dispute or rather it is admitted by the respondents that no licence is required to be obtained for processing the cotton or non-cotton seeds. The processed seeds are stored in the godown attached to the processing unit. On 24-1-2018, we passed a speaking order, asking the respondents to point out to us any statement in the reply to the effect that the petitioner is carrying out the activity of sale of seeds from the godown at Dhanora and granted them time to file an affidavit. The respondents filed an affidavit before us on 8-2-2018, but we do not find therein any statement or a complaint that the petitioner is carrying out the activity of sale or marketing of seeds from the godown at Dhanora. We, therefore, proceed on such presumption.
17. In terms of Section 7 of the Seeds Act read with Clause 3 of the Seeds (Control) Order, the business of selling, exporting or importing of seeds cannot be carried out from any place except under and in accordance with the terms and conditions of the licence granted in Form B under Clause 5 of the said Order in respect of non-cotton seeds. In our view, if all these provisions are ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 20 wp8157.17.odt read together and Form B, reproduced earlier, is looked into, a licence for storage of non-cotton seeds shall require if the storage is meant for selling, exporting or importing of seeds. If the storage of seeds is for the purposes of transporting it to different sale points or storages meant for putting the seeds in the network of marketing, no licence is required to be obtained.
18. Similar is the position in respect of storage of cotton seeds. The licence for storage of cotton seeds is required to be obtained under Section 11 of the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Act read with Rule 4 of the Rules thereunder only if the business of sale of cotton seeds is being conducted from the place of storage. If the processed seeds are stored in a godown for its further transportation to other godowns and sale points for putting the cotton seeds in the network of marketing, then, in our view, no such licence is required to be obtained.
19. It is not the case that the petitioner-Company is carrying on the activity of sale, import or export of cotton or non-cotton ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 21 wp8157.17.odt seeds from the places other than the licensed storages or sale points. Therefore, in our view, the respondents were wrong in holding that there was a violation of the condition of licence in changing the premises of carrying out the business of sale, export, import or storage for the purposes of sale of cotton or non-cotton seeds. Merely because the definition of "processing" under Clause 2(j) of the Seeds Rules excludes the packaging and labeling of seeds does not mean that there is an intention to store the seeds at Dhanora godown for the purposes of sale, export or import. The packaging and labeling can be for the purposes of convenient transportation of seeds to the sale points. No separate licence is required for packaging and labeling.
20. We, therefore, hold that in the present case no separate licence is required to be obtained for storage of seeds in the godown attached to the processing unit at Dhanora, either in Form B under Clause 5 of the Seeds (Control) Order, 1983 for non-cotton seeds, or in Form B under Rule 5 of the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Rules, 2010 for storage of cotton seeds, in the ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 22 wp8157.17.odt absence of any activity of sale, export or import of such cotton seeds being carried out from that place. The question No.(1) is answered accordingly.
21. Now coming to the second question, which we have framed regarding the authority to seal the godown and to continue to keep it as sealed till the report of samplings is received from the Laboratory, it is admitted by the respondents in their affidavit that the petitioner-Company was accorded permission by GEAC to undertake confined BRL II field trial of RRF Hybrid Cotton Seeds for a stipulated period of three years, in the year 2010. The samplings of these seeds are taken and sent to the Seed Testing Laboratory to find out whether the samplings are "misbranded" within the meaning of the definition contained in sub-section (2) of Section 12 of the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Act, 2009.
22. The power of the Seed Inspector to take samples of the seeds and to seize the stock of such seeds, is contained in Section 14 of the Seeds Act, 1966. Clause (c) under sub-section (1) ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 23 wp8157.17.odt of Section 14 of the said Act being relevant, is reproduced below :
"14. Powers of Seed Inspector.--(1) The Seed Inspector may--
(c) enter and search at all reasonable times, with such assistance, if any, as he considers necessary, any place in which he has reason to believe that an offence under this Act has been or is being committed and order in writing the person in possession of any seed in respect of which the offence has been or is being committed not to dispose of any stock of such seed for a specific period not exceeding thirty days or, unless the alleged offence is such that the defect may be removed by the possessor of the seed, seize the stock of such seed."
The power to enter and search under Section 14 of the said Act can be exercised if the Seed Inspector has reason to believe that an offence under the said Act has been or is being committed. The Seed Inspector can also, by an order in writing, direct that the person in possession of such seeds shall not dispose of any stock for a specified period of not exceeding thirty days. The procedure to be followed for this purpose is contained in Section 15 of the said Act. Section 17 of the said Act dealing with "restriction on export and import of seeds of notified kinds or varieties" states that ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 24 wp8157.17.odt no person shall, for the purpose of sowing or planting by any person (including himself), export or import or cause to be exported or imported any seed of any notified kind or variety, unless (a) it conforms to the minimum limits of germination and purity specified for that seed under Clause (a) of Section 6; and
(b) its container bears, in the prescribed manner, the mark or label with the correct particulars thereof specified for that seed under Clause (b) of Section 6.
23. It is not the case made out by the respondents in their reply that the petitioner-Company has committed any offence under the Seeds Act or has violated the restriction on export or import of the seeds of notified kinds or varieties, as contemplated by Section 17 of the Seeds Act. In such a situation, in our view, the power of seizure under Section 14 of the Seeds Act was not available to the respondents to seal the storage of seeds at Dhanora. Even if it was so, the action on the part of the respondents is in breach of the procedure to be followed, as prescribed under Section 15 of the said Act.
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24. The case of "misbranding" is covered by Section 12 of the Maharashtra Cotton Seeds (Regulation of Supply, Distribution, Sale and Fixation of Sale Price) Act, 2009, for which the penalty is prescribed under Section 13 therein. However, we do not find any power to search and seize such cotton seeds, as contained in the said Act or the Rules framed thereunder. If on examination the report of the Analyst disclosed "misbranding", the penalty can be imposed or the offences can be registered for that purpose, as provided under the provisions of the said Act. We, therefore, hold that there is no power vested in the respondents to seal the godown and to continue to keep it as sealed indefinitely or till the report of the samplings is received from the Laboratory. The question No.(2) is answered accordingly.
25. It is the case of the petitioner-Company that the RRF Hybrid Cotton Seeds were the result of confined BRL II field trial for which permission was accorded by GEAC for a period of three years, in the year 2010. Be that as it may, we have already recorded in our order dated 22-12-2017 that RRF Hybrid Cotton Seeds, which are segregated and piled up separately and stored in a ::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 26 wp8157.17.odt separate part of the godown of the petitioner-Company, shall be deemed to be in possession of the respondents and further action in respect thereof shall depend upon the report of the Laboratory. It is the categorical statement made before us for and on behalf of the petitioner-Company that they are neither selling RRF Hybrid Cotton Seeds and the same shall not be sold without obtaining the requisite permission from the Central Government.
26. In the result, this writ petition is allowed and the following order is passed :
: O R D E R :
(1) The impugned notices dated 15-12-2017 are hereby quashed and set aside.
(2) All the godowns at Dhanora attached to the processing unit of the petitioner-Company be de-sealed immediately.::: Uploaded on - 21/02/2018 ::: Downloaded on - 22/02/2018 02:11:31 ::: 27
wp8157.17.odt (3) The respondents shall not create any impediment in the processing and storage of cotton and non-cotton seeds, except that of the RRF Hybrid Cotton Seeds, carried out by the petitioner-Company.
(4) The RRF Hybrid Cotton Seeds in the godown at Dhanora shall remain in possession of the respondents and they shall be at liberty to take such action as is permissible in law, depending upon the outcome of the samplings sent for testing, and the petitioner-Company shall not deal with it in any manner without obtaining the requisite permission from the Central Government.
27. Rule is made absolute in above terms. No order as to costs.
(M.G. Giratkar, J.) (R.K. Deshpande, J.)
Lanjewar, PS
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