Can NCDRC Stop a State Commission Order During an Appeal?

Yes. NCDRC does have power to grant such interim relief against an order passed by State Commission in a proper appeal. However, grant of stay is not automatic.

Appex Court has specifically held that National Commission has power to stay an order passed by State Commission and also impose condition subject to such stay. Further, in Manohar Infrastructure and Constructions Private Limited case, Court specifically said that NCDRC can ask for entire amount/deposit (more than the statutory limit of 50 percent pre- deposit) while granting conditional stay but cannot mechanically impose higher condition and must be reasoned.

Which essentially means Professional analysis becomes key. Lawyers appearing before NCDRC would have to assess not just merits of challenging underlying order but also whether Appellant will suffer material prejudice by way of enforcement pending appeal.

If your clients are specifically looking at an appeal to NCDRC against State Commission, you should ask questions regarding stay right when you begin to look at maintainability and limitations.

What Should You Know About NCDRC Stay at a Glance?

• Stay cannot be granted by Appeal itself against order passed by State Commission. Appeal before NCDRC against certain orders passed by State Commission are governed by section 51 of Consumer Protection Act, 2019. Section 51(1) appeal has to be filed within prescribed period of 30 days along with sufficient cause shown for delay.

• Rule 11 BB(1)(b) of NCDRC Rules requires a deposit of fifty percent of the amount ordered to be paid by the appellant by the order of State Commission concerned for entertaining an appeal u/s 51(1). Merely because statutory pre-deposit condition is there, doesn’t mean grant of stay is automatic.

• NCDRC can levy higher amount of deposit condition at the instance of granting stay, but the same has to be seen done for reason. Orders passed by State Commission in appellate jurisdiction shall attract narrow framework of Second-appeal u/s 51 and not normal first appeal.

Is Every State Commission Order Challenged Through the Same NCDRC Appeal?

No. That's because of one of those situations where my clients all the time jump to the wrong conclusion.

51. (1) An appeal shall lie from ."

Section 51(1) means appeals from certain orders passed by the State Commission in exercise of the jurisdiction conferred by section 47(1)(a)(i) and (ii) The Explanation to section 51 further clarifies that an appeal shall lie from an order of the State Commission passed in appeal if the National Commission is satisfied that the case involves a substantial question of law.

So it isn't necessarily the question "how strong is the stay?" that Advocate BK Singh should consider. First the question is what is the correct legal remedy against this order of the State Commission?

Only after Lawyers at NCDRC understand where the order came from (i.e. under what jurisdiction did the State Commission exercise jurisdiction) and what is the nature of the challenge sought to be made will they be able to determine whether a first appeal, second appeal, revision or some other remedy is available.

Determining that first could save huge amounts of time from being wasted.

What Does NCDRC Consider Before Granting a Stay?

Stay is not granted on the word go of the appellant that the State Commission erred in its order.

The Supreme Court said that need to see the facts and circumstances leading to the issuance of such order, inconvenience caused by the immediate enforcement of the order, nature of monetary/other directions and necessity for imposing conditions to safeguard the rival interests etc.

may have to be considered by the Commission. Importantly, the Supreme Court has held that conditional stay is perfectly fine and even conditions which are more than the statutory requirement of pre-deposit of 50 percent can be imposed if it is sufficiently carved out.

That is why the scrutiny of the facts becomes very important.

Those clients who come seeking stay application & interim relief assistance from NCDRC Lawyers will have to realize that urgency would be tested in isolation of the inherent merits of the appeal.

Mr Advocate BK Singh will also advise you if what you seek as interim relief is practical or not. Just because you get a stay order does not mean that you have won the appeal. A stay merely freezes the status quoant position.

Who Should Seek Urgent NCDRC Stay Advice?

Emergency Assistance may be needed when the State Commission order is such that you cannot let things remain as they are till the appeal is finally disposed of.

For example, a builder who has been directed to refund a huge amount; an insurer who is resisting payment of compensation; a hospital against whom an award on medical negligence has been made; a consumer who is worried about execution of an order passed against him; an e-commerce portal or online travel agency that has been ordered to pay money; or a business that has received a notice from NCDRC relating to execution of order, Geography is no barrier.

Whether the State Commission order is passed by Delhi, UP, Haryana, Rajasthan, Maharashtra, Karnataka, Tamil Nadu or any other State's commission, if appeal is going to NC then lawyer from NCDRC can help consumers and businesses located in Delhi NCR as well as in other parts of India. NCDRC Lawyers can assist you in determining whether you need Emergency Assistance to protect your rights and interests.

At this critical stage Advocate BK Singh tries to find out the vulnerability before it gets set in stone by time.

Which Documents Should a Lawyer Review Before Advising on Stay?

Judgment of the State Commission must be looked at rather than listening to the party client orally.

The Order sheet of State Commission itself speaks volumes. The complaint/ appeal as on record alongwith the written statements, evidence/photos/documents , the agreement/invoices/bank receipts/correspondence etc. alongwith any interim orders passed earlier and correspondence, if any regarding execution/compliance etc. would be part of the record that would be needed to be looked at to form an opinion.

If money is awarded as compensation/ penalty, the principal amount to be paid, interest accrued and if deposit of that amount would be affected would also have to be considered.

NCDRC Advocates would know what section/order in a huge consumer file determines the relatively narrower issue of allowing/denying immediate stay opposed to what the client would think.

Finally Advocate BK Singh would have to verify if the NCDRC proceeding proposed is a first appeal or a narrower appeal against the order of the State appellate commission. That itself would make a difference.

How Much Time Do You Have to Act?

Rule 51(1) says First appeal ought to be preferred within a duration of 30 days granted under CPA. Additionally rule 51(1) states that an appeal may be entertained after 30 days if National commission believes that there was adequate cause which didn’t enable the party to file appeal within 30 days.

52 deals with the timeframe regarding disposal of appeals. It states that appeals will be processed “as quickly as possible” and that attempts will be made to dispose of appeals within 90 days from date of admission. Remember thats a legal endeavour, not a promise that every appeal will be finalized in exactly 90 days. Registry defects can play a role as well.

The 2020 Regulations provide for scrutiny of appeals as well as for notice of defects in filing to be sent out so that they can be corrected. For that reason you typically have more time to properly analyze a situation when your NCDRC Lawyers clients come to you first thing after receiving the order rather than after enforcement proceedings have begun.

What Can Happen If the State Commission Order Is Not Stayed?

Stay of Orders from Consumer Commission: The logistical danger here is the time. The appeal can take months during which time the order continues to accrue consequence. Depending on the order and potential follow-on proceedings, the prevailing party may be permitted to try to execute on the relief granted. Orders from the Consumer Commissions are executable pursuant to statute, therefore the wish to appeal an order should not be confused with obtaining a stay of that order.

That can mean pressure on cash-flow for a business. That can mean continuing uncertainty for an individual consumer. A later stay will do less to help you if a great deal of consequence has already accrued. NCDRC Lawyers can assist you in determining if immediate relief is actually necessary instead of manufacturing crises in every situation.

You should at least understand the difference. Consult Advocate BK Singh for legal analysis, not to automatically order a stay that will be guaranteed by courts.

When Should You Consult Advocate BK Singh?

Get Advice Early when:

• you have received an adverse order from the State Commission;
• the order involves payment /refund/ compensation or some other serious liability;
• you are facing/ have been threatened with / executed upon;
• the limitation period will expire;
• you are confused whether the NCDRC remedy is available as first appeal or second appeal.
• you cannot determine what deposit exposure would be applicable; or
• the consumer/ real estate /insurance/ medical/ business exposure is high.

Early advice does not mean that you have to challenge every order.

Advocate BK Singh can initially advise whether it makes commercial and legal sense to get involved. If representation is warranted, clients can benefit from our lawyer and representation history with the NCDRC as well.

By focusing on this first, the NCDRC Lawyers can understand what your situation really is: Do you really need to appeal the State Commission order? Or do you need protection before the order takes effect against your interests?