Ncdrc May Request 50% Or The Entire State Panel Order For Stay: Sc

NCDRC may request 50% or the entire state panel order for stay: SC

New Delhi, Dec 7, 2018 : On Tuesday, the Supreme Court ruled that the National Consumer Disputes Redressal Commission can direct the deposit by the NCDRC of the entire amount or more 50 percent as determined by the state commissioner for conditional stay A bench of Justices M.R.Shah and B.V.Nagarathna stated that the pre-deposit of 50% of the amount, as ordered by state commission under Section 51 of the Consumer Protection Act 2019, is mandatory for the entertainment of an appeal by national commission.It stated that the pre-deposit condition was intended to prevent frivolous appeals.

 Ncdrc May Request 50% Or The Entire State Panel Order For Stay: Sc-TeluguStop.com

The pre-deposit condition is not connected to the grant of a stay by the national commissioner.while considering the stay application in staying the order passed by the state commission, the national commission can grant a conditional stay directing the appellant(s) 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,” the bench said.

The top court’s ruling came in a case involving the interpretation of Section 51 of the Consumer Protection Act 2019, which prescribes pre-deposit for filing appeal before the NCDRC.

The top court framed a question to examine: “Whether the national commission can pass an order to deposit the entire amount and/or any amount higher than the 50 per cent of the amount in terms of the order of the state commission while entertaining the appeal in view of Section 51 of the Consumer Protection Act, 2019.It concluded that the national commission must give reasons and/or issue a speaking order if the conditional stay is granted by the state commission.This order, which requires deposit of all amounts and/or any amount greater than 50% of the amount in terms of Section 51 of the Consumer Protection Act, 2019, was passed.”

Section 51 of the Consumer Protection Act, 2019 provides that no appeal by a person, who is required to pay any amount in terms of order of the state commission shall be entertained by the national commission unless the appellant has deposited 50 percent of that amount in the manner as may be prescribed.

The top court judgment came on the appeals filed by a group of builders aggrieved by the direction of the NCDRC to deposit the entire decretal amount determined by the state commission for conditional stay.The bench stated that the national commission could grant a conditional stay to the order of the state commission on depositing the entire amount and/or any amount greater than 50 percent of the amount ordered by the state commissioner in the aforesaid way.”

One of the petitioner’s counsel argued Section 51 imposed a statutory limit that the pre-deposit amount cannot be higher than 50 percent of the decretal amount.


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