STARTUP LEGAL5 Sept 2026
Indian Kanoon - Search engine for Indian Law
A consumer court held a Haryana government cold storage responsible for potato seeds that sprouted in its facility. The court called its clause disclaiming liability for breakdowns 'unfair'. The storage had to prove it kept temperatures right, and could not shift blame to farmers. Sprouted seeds can't be eaten, so farmers suffered real loss. This matters to any business storing goods.
Key Statutory Highlights
- The court found the cold storage's clause disclaiming liability for breakdowns, gas leaks or power cuts to be an unfair condition.
- The cold storage could not prove it maintained proper temperature, so it was held responsible for the spoiled potato seeds.
- A university report confirmed sprouted potatoes are not suitable for consumption, though they could still be sown.
Actionable Advice for Taxpayers / Founders:If your business stores goods for customers, review any contract clause that tries to waive your liability for equipment failure—Indian consumer courts may treat it as unfair.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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