Conditional pre-deposit of 50% of amount before entertainment of appeal by NCDRC doesn’t take away its jurisdiction to order to deposit entire amount, subject to reasons: SC

feature-top

Read Judgment: Manohar Infrastructure and Constructions Private Limited & Others vs. Sanjeev Kumar Sharma and Others 

Pankaj Bajpai

New Delhi, December 8,2021: The Supreme Court has ruled that while considering an application to stay the order passed by the State Commission, the National Consumer Disputes Redressal Commission (National Commission) can pass an order to deposit the entire amount and/or any amount higher than 50 per cent of the amount in terms of the order of the State Commission while entertaining the appeal u/s 51 of the Consumer Protection Act, 2019

A Division Bench of Justice M.R Shah and Justice B.V.Nagarathna therefore observed that the pre-deposit condition as per second proviso to Section 51 of 2019 Act has no nexus with the grant of interim order of stay by the National Commission subject to deposit of the amount awarded by the State Commission.

The observation came pursuant to appeal preferred by Manohar Infrastructure and Constructions Private Limited (Appellant-Builder) challenging the order passed by the National Consumer Disputes Redressal Commission, New Delhi (National Commission) by which, the National Commission, while staying the order passed by the State Commission had directed the Appellant to deposit the entire decretal amount with the State Commission. 

The background of the case was that, that feeling dissatisfied with the order passed by the State Commission directing the Appellants to refund the amount paid by the respective home buyers with interest, the Appellants approached the National Commission u/s 51 of the 2019 Act. 

Although the respective appellants have deposited 50% of the decretal amount, the National Commission stayed the order passed by the State Commission on condition that the Appellants shall deposit the entire decretal amount with interest, if any, with the State Commission. Hence, present appeal. 

After considering the arguments and the provisions, the Top Court observed from a fair reading of Section 51 of the Act, 2019, that an appeal against the order passed by the State Commission can be entertained by the National Commission, requires the appellant to deposit 50 per cent of the disputed amount as pre-deposit.

Hence, it is the pre-condition to deposit 50 per cent of the amount as ordered by the State Commission before appeal is entertained by the National Commission, added the Court. 

Speaking for the Bench, Justice Shah noted that such pre-condition does not take away the jurisdiction of the National Commission to order to deposit the entire amount and or any amount higher than 50 per cent of the amount while considering the application to stay the order passed by the State Commission. 

However, at the same time, while considering the stay application against the order passed by the State Commission and while passing the order to deposit the entire amount and/or any amount higher than 50 per cent of the amount, the National Commission has to assign some reasons and pass a speaking order why the conditional stay is being granted on condition of deposit of the entire amount and/or any amount higher than 50 per cent of the amount. Such an order on the stay application is not to be passed mechanically, opined Justice Shah. 

Hence, the Apex Court remanded the matters to the National Commission to decide the applications afresh and pass an appropriate order, as earlier it was passed mechanically without assigning any reasons. 

Add a Comment