Raichand & Sons supplied deficient pipes and fitting materials to Rakesh & Sons. Rakesh & Sons preferred an application before the State Commission, for which State Commission had awarded ₹ 1.5 Crore as compe

Supreme Court in the case of Manohar Infrastructure and Constructions Private Limited v. Sanjeev Kumar Sharma & Ors, judgment dated December 07, 2021 held that the condition of pre-deposit for entertaining appeal under Section 51 of the Consumer Protection Act, 2019 is mandatory. Section 51 of the Consumer Protection Act, 2019 provides that no appeal by a person, who is required to pay any amount in terms of order of the State Commission shall be entertained by the NCDRC unless the appellant has deposited 50 percent of that amount. The Hon'ble Court in answering the question laid down the following: Pre-deposit of 50 per cent of amount as ordered by the State Commission under second proviso to Section 51 of the Consumer Protection Act, 2019 is mandatory for entertainment of an appeal by the National Commission; The object of the said pre-deposit condition is to avoid frivolous appeals; The said pre-deposit condition has no nexus with the grant of stay by the NCDRC. Therefore, it is mandatory for Raichand & Sons to deposit the money before preferring an appeal to National Consumer Dispute Redressal Commission (NCDRC) under the Consumer Protection Act, 2019.