Laws laid down by supreme court



Section 24 of Consumer Protection Act  talks about the finality of the  order and once the order is final ,consumer has a right to get it executed . The question has been raised time and again as to under what circumstances execution of consumer court order can be stayed .National Commission has discussed this issue in the matter before it , Shreenath Corporation &Others v/s Nilkamal v. Patel &Others  referring to section 24,27 and 25 of the act .

Section 24 confirms that “every order of a District Forum ,the State Commission or National Commission shall ,if no appeal has been preferred against such order under the provision of this act be final ’.This section does not talk of any stay or admission of the appeal ,hence  defendent  party just gets appeal registerd and claims for stay of execution of the order. Now the word ‘preferred ‘ requires interpretation.

National Commission relying upon number of judgments pronounced by the apex court on the issue held and explained in its judgment dated 5.8.2014 in the above referred case Of Shreenath Corporation -

“ A person against whom an order is passed by the District Forum,State Commission or the National Commission as the case may be ,fails or omits to comply with the order,he can be proceeded against under section 27 of the act even if he has filed an appeal against the order unless the said order has been stayed by the superior forum ”

The basis of above holding by the National Commission rests on the various earlier judgments .Apex court in the case of Atmaram Properties v/s Federal Motors v11(2005) 1 SCC 705 had held-

“There was no bar against initiation of proceedings under section27 of the act merely on account of an appeal having been preferred by the aggrieved party.A prayer for grant of stay of proceedings or on execution of order has to be made specifically to the appellate court and court has a discretion to grant an order of stay or refuse. Merely preferring an appeal does not operate as stay on the decree nor on the proceedings in the court”

In yet another case of Shree Chamundi Mopeds v/s Church of South India Trust Association , apex court went further to explain the impact of stay-

“Wherein operation of the order has been stayed by the court,it only means that such an order would not be operative from the date of its passing ,it shall remain pending till the disposal of case depending upon its final verdict .Order stayed is not wiped up from existence .”

Its clear from the above discussion that-

Merely preferring an appeal does not operate as stay on the decree nor on the proceedings in the court

Further ,even if order stayed from operation ,it is not wiped up from existence .”




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