Sec.19 of Consumer Act – Whether the National Consumer Forum can grant stay orders at appeal stage – much more conditional Stay orders – Apex court held that It is not the case of any of the appellants that the Consumer Forum including State and National Commissions has no power to pass interim order of stay. If the National Commission after hearing the appeal of the parties in its discretion wants to stay the amount awarded, it is open to the National Commission to pass an appropriate interim order including conditional order of stay. Entertainment of an appeal and stay of proceeding pursuant to order impugned in the appeal stands at different footings, at two different stages. One (pre-deposit) has no nexus with merit of the appeal and the other (grant of stay) depends on prima facie case; balance of convenience and irreparable loss of party seeking such stay. In view of the finding recorded above, the interference with the impugned order dated 15th May, 2012 passed by the National Commission is not called for.=
A number of complaints u/s 17(1) of the Consumer Protection Act, 1986
(hereinafter referred to as the, ‘Act’) were filed by different persons
before the Consumer Disputes Redressal Commission, Gujarat State, Ahmedabad
(hereinafter referred to as the, ‘State Commission’) against the appellants
– opposite parties.
4. The State Commission by order dated 30th January, 2012 allowed the
applications in part and directed the appellants-opposite parties to pay
certain amount with interest in favour of the complainants.
5. Against the aforesaid orders, the appellants preferred separate
appeals u/s 19 of the Act before the National Commission being First Appeal
Nos.91-104 of 2012. In all these appeals separate interlocutory
applications for stay were filed by the appellants. The National Commission
by impugned common order dated 15th May, 2012 passed conditional interim
order which reads as under:
“Heard.
Issue notice on main appeal as well as on stay applications to
the respondents, returnable on 22.11.2012.
In the meanwhile, operation of the impugned order shall remain
stayed, till next date, subject to appellants depositing 50% of the awarded
amount (principal amount), within three months from today, with the State
Commission.
On deposit of the amount, State Commission shall put the same
in fixed deposit in a Nationalized Bank, initially for one year.
Dasti.” =
This Court in State of Haryana v. Maruti Udyog Ltd. and others,
(2000) 7 SCC 348, while dealing with case of waiver of “pre-deposit” in an
appeal under first proviso to Section 39(5) of the Haryana General Sales
Tax Act held:
“7…………….There cannot be any dispute that right of appeal is the creature of
the statute and has to be exercised within the limits and according to the
procedure provided by law. It is filed for invoking the powers of a
superior court to redress the error of the court below, if any. No right of
appeal can be conferred except by express words. An appeal, for its
maintainability, must have a clear authority of law. Sub-section (5) of
Section 39 of the Act vests a discretion in the appellate authority to
entertain the appeal if it is filed within sixty days and the amount of tax
assessed along with penalty and interest, if any, recoverable from the
persons has been paid. The aforesaid restriction is subject to the proviso
conferring discretion upon the appellate authority to dispense with the
deposit of the amount only on proof of the fact that the appellant was
unable to pay the amount. Before deciding the appeal, the appellate
authority affords an opportunity to the party concerned to either pay the
amount or make out a case for the stay in terms of proviso to sub-section
(5) of Section 39 of the Act. Once the conditions specified under sub-
section (5) of Section 39 are complied with, the appeal is born for being
disposed of on merits after hearing both the sides.”
11. The second proviso to Section 19 of the Act mandates pre-deposit for
consideration of an appeal before the National Commission. It requires 50%
of the amount in terms of an order of the State Commission or 35,000/-
whichever is less for entertainment of an appeal by the National
Commission. Unless the appellant has deposited the pre-deposit amount, the
appeal cannot be entertained by the National Commission. A pre-deposit
condition to deposit 50% of the amount in terms of the order of the State
Commission or Rs.35,000/- being condition precedent for entertaining
appeal, it has no nexus with the order of stay, as such an order may or may
not be passed by the National Commission. Condition of pre-deposit is
there to avoid frivolous appeals.
12. It is not the case of any of the appellants that the Consumer Forum
including State and National Commissions has no power to pass interim order
of stay. If the National Commission after hearing the appeal of the parties
in its discretion wants to stay the amount awarded, it is open to the
National Commission to pass an appropriate interim order including
conditional order of stay. Entertainment of an appeal and stay of
proceeding pursuant to order impugned in the appeal stands at different
footings, at two different stages. One (pre-deposit) has no nexus with
merit of the appeal and the other (grant of stay) depends on prima facie
case; balance of convenience and irreparable loss of party seeking such
stay.
13. In view of the finding recorded above, the interference with the
impugned order dated 15th May, 2012 passed by the National Commission is
not called for. In absence of any merit, the appeals are accordingly
dismissed. No costs.
advocatemmmohan 
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