Shivani Gadhavi
Published On: February 16, 2022 at 17:58 IST
The Supreme Court of India on February 15, 2022 observed that the burdensome condition to make a pre-deposit of 50% in order to challenge an Order of the National Consumer Dispute Redressal Commission (NCDRC), cannot be applicable on Complaints that were filed before the commencement of the Consumer Protection Act, 2019.
The Supreme Court Bench of Justices Hemant Gupta and V Ramasubramanian was hearing a Plea filed against an Order of the National Consumer Dispute Redressal Commission, wherein the Petitioner was directed to pay INR 265.01 crores with an interest rate of 10% per annum, starting from the date of October 19, 2016.
The Petitioners contended before the Supreme Court Division Bench that the original Complaint in the Redressal Commission was filed before the Consumer Protection Act, 2019 came into force. The Petitioner also mentioned that the Redressal Commission had passed the aforementioned Order of payment in 2021 i.e.., after the Consumer Protection Act came into force.
In this regard, a question before the Division Bench was raised that whether present Appeal would be applicable under the Consumer Protection Act, 1986 or 2019. The Act of 1986 states that no appeal shall be entertained by the Supreme Court except when the person deposits 50% of the original amount that has to be paid. The Petitioner had contended that the current Appeal should be governed under the Act of 1986 and not 2019.
The Supreme Court in this regard, while allowing the Plea of the Appellant stated that,
“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.”