Stored produce in a cold storage? This ₹31.54 lakh consumer court ruling could protect your harvest

Madhya Pradesh State Consumer Disputes Redressal Commission has held a cold storage facility liable for deficiency in service and directed it to pay a farmer ₹31.54 lakh after finding that over 48,000 kg of his carrots were sold without his consent and pocketing the profits, the commission's June 25 order shows. 

The commission finds deficiency in service

The bench, comprising retired President Justice Sunita Yadav and Member Monika Malik, accepted the farmer’s contention that he had stored carrots and beetroots worth ₹40.19 lakh in the cold storage but later discovered the vegetables had been sold 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 spoilt/rotten on account of heat or other weather conditions,” the order said, adding the 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.”

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Farmer’s claim and evidence

The farmer had deposited 1,033 bags of carrots (approximately 77,250 kg) and 450 bags of beetroots (approximately 42,379 kg) on different dates, the complaint stated. According to the commission’s calculation, each bag held roughly 75 kg. The farmer received 387 bags of carrots back from the storage, leaving 646 bags – equal to 48,450 kg – which the commission found had been sold by the cold storage.

“From the record it is proved that the complainant deposited 1,033 bags containing 77,250 kg of 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 1,033-387=646 bags, i.e., 646×75 kg comes to 48,450 kg of carrots,” the order held.

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In response to an enquiry months after storage, the farmer learnt that the facility had purportedly “thrown away” the stock as rotten but later discovered it had been sold for profit. The farmer sent a legal notice to the cold storage on November 5, 2018. The farmer alleged “deficiency of service” by the providers and filed a consumer complaint seeking payout of Rs 90.19 lakhs, which included the cost of crops along with compensation. 

Defence statement

Advocate Shivangi Trivedi, representing the cold storage, argued that the facility had warned the farmer that the stock was already affected by heat and needed immediate sale to avoid spoilage, but the farmer ignored the advice. The farmer had sold a portion of his stock and did not collect the remaining vegetables lying in the storage, which were later sold on his instructions, Trivedi told the commission. The defence also claimed the farmer repeatedly washed and re-stored produce and may have been engaged in the sale of crops, not purely farming.

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The commission rejects the defence

The commission did not accept the cold storage’s version, noting the facility provided no proof that the vegetables were already spoilt when deposited or that the sale had the farmer’s consent. It also found no evidence that the complainant was not a farmer. “From the record it is proved that the complainant deposited 1,033 bags containing 77,250 kg of carrots,” the order recorded when computing the unpaid quantity and damages.

Monetary award and compensation

The commission ordered the cold storage to pay Rs 29.07 lakh for the 48,450 kg of carrots and Rs 2.32 lakh representing rent for keeping 1,033 bags in storage. It also awarded Rs 15,000 as compensation and costs, bringing the total to Rs 31.54 lakh. The facility was directed to make payment within two months.

“This complaint is allowed against the opposite parties… The cold storage shall pay a sum of Rs.2,907,000 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.232,425 towards rent/fare charged from the complainant for keeping 1,033 bags of carrots in cold storage to the complainant within a period of two months,” the order said.