Condition To Pre-Deposit 50% Amount To Challenge NCDRC Order Not Applicable To Complaints Filed Before Consumer Protection Act 2019 : Supreme Court

The Supreme Court held that the onerous condition of payment of 50% of the amount awarded to file appeal against NCDRC order will not be applicable to the complaints filed prior to the commencement of the Consumer Protection Act, 2019.

The consumer complaint, in this case, was filed before the National Consumer Disputes Redressal Commission before the 2019 Act came into force. But the NCDRC allowed the complaint on 27.1.2021, whereas the 2019 Act came into force from 20.7.2020.

NCDRC Can Direct Deposit Of Entire Or More Than 50% Of Amount Determined By SCDRC For Stay : Supreme Court

So the question before the Apex Court bench was whether the appeal before it would be governed under the Consumer Protection Act, 2019 or under the erstwhile 1986 Act. This issue became relevant since, in terms of Section 67 of the 2019 Act, no appeal against the order of National Commission shall be entertained by the Supreme Court unless the person has deposited fifty per cent of the amount required to be paid. Whereas, under the 1986 Act, the condition was that no appeal shall be entertained by the Supreme Court unless the person who is required to pay the amount deposits fifty per cent of the amount or fifty thousand, whichever is less. 

Before the Apex court, it was contended that the law which is applicable at the time of initiation of the lis would be applicable, and therefore the provisions of 1986 Act would govern the present appeal and not the provisions of 2019 Act. Opposing this, the respondent contended that the amendment is procedural in nature and thus always retrospective.

In its judgment, the bench comprising Justices Hemant Gupta and V. Ramasubramanian refers to and discusses various judgments, including those by Constitution bench of the Supreme Court, to finally conclude thus:

"34. In view of the binding precedents of the Constitution Bench judgments referred to above, we hold that onerous condition of payment of 50% of the amount awarded will not be applicable to the complaints filed prior to the commencement of the 2019 Act."

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