WP/11773/2001 of The Fertilisers, Pestisides AND Seeds Vs Commissioner AND Director of Agriculture on 29 December 2008

ORDER:

The petitioner is an association of dealers in fertilizers,pesticides and seeds in the state of A.P. They feel aggrieved by theinsistence on the part of the respondents requiring the members ofthe association to obtain licences under the Insecticides Act, 1968(for short ‘the Act’) and the Rules made thereunder separately forgodowns. The petitioner contends that Rule 10 of the InsecticidesRules, 1971 (for short ‘the Rules’), which provides for licences forsale and other activities in insecticides, requires the applications tobe made in Form VI or VII and the licence is to be issued in Form

VIII. According to them, there is no separate provision or form forgrant of licences exclusively for godowns. It is also their case that theforms as well as licences mentioned not only the premises where theinsecticides are sold, but also the places where they are stored.

The respondents filed a counter-affidavit trying to justify theinstances of obtaining separate licences. According to them, sub-rule(3) of Rule 10 of the Rules, mandates that separate licence beobtained, where the activities are undertaken at more places thanone.

Heard Sri Vedula Srinivas, learned counsel for the petitioner,and learned Government Pleader for Agriculture.

The Act with the Rules made thereunder is a comprehensivecode regulating the manufacture, sale, distribution and stocking ofinsecticides. Rule 10 of the Rules prescribes the procedure for grantof renewal of licences. The rule to the extent it is necessary for thiscase reads as under:

“10.Licence for sale, etc., of insecticides:

(1) Applications for the grant or renewal of a licence to sell,stock or exhibit for sale or distribute insecticides shall bemade in Form VI or Form VII, as the case may be, to thelicensing officer and shall be accompanied by the feesspecified in sub-rule (2).stock or exhibit for sale or distribute insecticides shall bemade in Form VI or Form VII, as the case may be, to thelicensing officer and shall be accompanied by the feesspecified in sub-rule (2).

(2) The fee payable under sub-rule (1) for grant or renewal ofa licence shall be rupees five hundred for everyinsecticide for which the licence is applied. There shallbe a separate fee for each place, if any insecticide issold, stocked or exhibited for sale at more than oneplace:a licence shall be rupees five hundred for everyinsecticide for which the licence is applied. There shallbe a separate fee for each place, if any insecticide issold, stocked or exhibited for sale at more than oneplace:

Provided that the maximum fee payable in respect ofinsecticides commonly used for household purposes andregistered as such shall be rupees seven thousand fivehundred for every place:

Provided further that, if the place of sale is establishedin the rural areas, the fee shall be one-fifth of the feespecified in this rule.

(3) If any insecticide is proposed to be sold or stocked for sale at more than one place, separate applications shallbe made and separate licences shall be issued in respectof every such place and for every insecticides.

(4) A licence to sell, stock or exhibit for sale or distributeinsecticides shall be issued in Form VIII and shall besubject to the following conditions namely:insecticides shall be issued in Form VIII and shall besubject to the following conditions namely:

xxx.”

The rest of the Rule is omitted as not necessary.

From this, it becomes clear that an application for grant oflicence to sell, stock or exhibit for sale or distribute insecticides is tobe made in Form VI and the application for renewal thereof, is to bemade in Form VII. The licence is to be issued in Form VIII. At everyplace in the Rule, the activities of sale, stocking, exhibition of sale ordistribution are mentioned conjointly. All these places are to bementioned in the applications as well as licence. The activities ofsale, stock or exhibition are not dealt with independently. In fact, theRules do not permit an exclusive activity of stocking of pesticides. Itis only in the context of sale of the product. In the application,separate provision is made for mentioning the premises whereinsecticides are stored and the place where they are sold. Therefore,the view taken by the respondents does not fit into the scheme of theAct and the Rules.

The grievance expressed by the respondents is that the dealersare conducting sales at the godowns also. Even if that is true, it is not known as to how they proposed to curb it by insisting onobtaining separate licences. Firstly, the rules do not contemplateissuance for exclusive licence for stocking or for godowns. It isalways an ancillary to the licence to sell. Secondly, even if anindependent licence is applied and issued for godowns, that wouldonly strengthen the activities, which are otherwise illegal. Thereason is that the person holding independent licence would feelmore at liberty, compared to the one under a conjoint licence.

Viewed from any angle, the stand taken by the respondents cannotbe countenanced.

Hence, the Writ Petition is allowed and it is directed that therespondents shall not insist that the members of the petitioner shallobtain licence for godowns. It is, however, clarified that the licenceesshall not be entitled to undertake the activity of sales at godowns,even if mentioned in the licence. There shall be no order as to costs.

Dt.29.12.2008Note: L.R.Copy to marked.

GJ

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L.NARASIMHA REDDY, J