Consumer Protection Act 2019 : Can NCDRC Direct Deposit Of 50% Of Amount Determined By State Commission For Appeal Under Section 51? Supreme Court To Examine

The Supreme Court has decided to examine if the National Consumer Commission can direct deposit of entire amount or any amount higher than 50% of the amount in terms of the order of the State Commission while entertaining an appeal under Section 51 of the Consumer Protection Act, 2019.

A Bench comprising Justice MR Shah and Justice BV Nagarathna will examine the question while hearing a special leave petition challenging an order passed by the National Consumer Dispute Redressal Commission, New Delhi.

The question of law which is posed for consideration before the Supreme Court Court is whether the National Commission can pass an order to deposit the entire amount and/or any amount higher than the 50% 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.

Section 51 of the Consumer Protection Act, 2019 deals with the provision for appeal against an order of State Commission before the National Commission within a period of thirty days from the date of the order

The proviso to the section states that no appeal by a person, who is required to pay any amount in terms of order of the State Commission will be entertained by the National Commission unless the appellant has deposited 50% of that amount in the manner as may be prescribed.

With regard to the provision, the Bench will examine if the same can be said to be the minimum amount to be deposited by the appellant before his appeal is entertained by the National Commission.

In the present case, the Bench will consider if the same proviso bars and/or precludes the National Commission from passing an order on the stay application directing the appellant to deposit any amount higher than the 50%.

The Bench will hear the matter next on 29th November 2021.

Case Title: Manohar Infrastructure & Constructions Pvt Ltd vs Sanjeev Kumar Sharma & Ors

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