Section 19 of The Consumer Protection Act, 1986

As per the second proviso to Section 19 of the Consumer Protection Act, 1986, no appeal by a person, who is required to pay any amount in terms of an order of a State Consumer Disputes Redressal Commission (“SCDRC”), shall be entertained by the National Consumer Disputes Redressal Commission (“NCDRC”) unless the Appellant-person deposits, in the prescribed manner, fifty percent of the amount or Rupees Thirty Five Thousand, whichever is less. If a SCDRC, therefore, orders a person to pay an amount in the range of Rs. 70,000 and above – an appeal from that order will only be heard by the NCDRC once the Appellant has deposited, in the prescribed manner, Rs. 35,000. In M/s. Shreenath Corporation v. Consumer Education & Research Society, (2014) 8 SCC 657, the SC has held that the aforesaid “pre-deposit condition” has no nexus with any order of stay that the NCDRC may be pleased to issue. That, “entertainment of an appeal and stay of proceedings pursuant to order impugned in the appeal stands at different footings…” And therefore, even after an Appellant has deposited the requisite amount, for the hearing of his appeal before the NCDRC, the NCDRC may yet prescribe a condition of depositing a further amount before it grants any stay of the operation of the order of the relevant SCDRC.

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