Case Note & Summary
The appeal arose from an order of the National Consumer Dispute Redressal Commission directing the appellant to pay a substantial sum with interest. The appellant filed an application to entertain the appeal under the Consumer Protection Act, 1986, and deposited ₹50,000 as per the second proviso to Section 23 of that Act. The core legal issue was whether the appeal should be governed by the Consumer Protection Act, 1986 or the Consumer Protection Act, 2019, which came into force on July 20, 2020, particularly regarding the condition for deposit of amount for entertaining the appeal. Under the 1986 Act, the deposit condition was fifty per cent of the amount or fifty thousand rupees, whichever is less, while under the 2019 Act, it was fifty per cent of the amount. The appellant argued that the appeal was preferred under Section 23 of the 1986 Act, and the law applicable at the time of initiation of the lis should govern, citing Section 6 of the General Clauses Act, 1897, and Section 107 of the 2019 Act. The court analyzed the arguments, noting that the right of appeal is a substantive right that becomes vested when proceedings are first initiated. It referred to precedents, including Hoosein Kasam Dada (India) Ltd. v. State of Madhya Pradesh & Ors., which established that a pre-existing right of appeal continues unless taken away by express enactment or necessary intendment. The court found that Section 107 of the 2019 Act does not show a different intention to affect accrued rights, and thus the 1986 Act governs the appeal. Consequently, the court allowed the appeal to be heard on merits, accepting the deposit of ₹50,000 as sufficient.
Headnote
A) Consumer Law - Appeal Procedure - Deposit Condition - Consumer Protection Act, 1986, Section 23 - The appellant filed an appeal against an order of the National Consumer Dispute Redressal Commission and deposited ₹50,000 under the second proviso to Section 23 of the 1986 Act, arguing that the appeal is governed by the 1986 Act as the lis was initiated before the 2019 Act came into force. The court examined whether the appeal is governed by the 1986 Act or the 2019 Act, focusing on the deposit condition. Held that the right of appeal is a substantive right that becomes vested when proceedings are first initiated, and the law applicable at that time governs, unless a different intention appears from the repealing statute. The court found no such different intention in Section 107 of the 2019 Act, and thus the 1986 Act applies, allowing the appeal to be heard on merits with the deposit of ₹50,000 (Paras 1-10).
Issue of Consideration
Whether the present appeal would be governed under the Consumer Protection Act, 2019 or under the erstwhile Consumer Protection Act, 1986, particularly regarding the condition for deposit of amount for entertaining the appeal
Final Decision
The court allowed the appeal to be heard on merits, holding that it is governed by the Consumer Protection Act, 1986, and the deposit of ₹50,000 under Section 23 suffices for entertaining the appeal
Law Points
- Right of appeal is a substantive right
- not merely procedural
- and becomes vested when proceedings are first initiated
- The law applicable at the time of initiation of lis governs the appeal
- unless a different intention appears from the repealing statute
- Section 6 of the General Clauses Act
- 1897 protects accrued rights and pending legal proceedings upon repeal of an enactment
- unless inconsistent with the new Act
