Appeal Against an NCDRC Order in the Supreme Court

Which National Commission orders can go to the Supreme Court

Section 58 of the 2019 Act gives the National Commission several kinds of jurisdiction. Section 67 allows an appeal to the Supreme Court only against orders made under section 58(1)(a)(i) and (ii): complaints in which the consideration paid for the goods or services is above the National Commission's pecuniary threshold, and complaints against unfair contracts above the same threshold. Since the jurisdiction rules of 30 December 2021, the National Commission hears complaints where the consideration paid exceeds two crore rupees; below that, complaints go to the District or State Commission.

Typical cases at this level are claims by home buyers against developers for delayed possession of high-value flats, insurance repudiations of large commercial policies, and claims for medical negligence where the compensation sought is high.

When the route is the High Court, not the Supreme Court

Where the National Commission decides an appeal from a State Commission, or exercises its revisional power, the Act provides no further appeal. In Ibrat Faizan v. Omaxe Buildhome (2022), the Supreme Court held that such an order can be challenged before the High Court under Article 227 of the Constitution, which has supervisory jurisdiction over the National Commission. The High Court's scope is supervisory: it corrects patent errors of jurisdiction or law, not every finding of fact.

For orders of the National Commission's bench in Delhi, that means the Delhi High Court. The decision on route should be made the day the order is received, since a misdirected Special Leave Petition loses weeks.

The 30-day limit and the 50% pre-deposit

An appeal under section 67 must be filed within 30 days of the order. The Supreme Court may entertain it after that period if it is satisfied there was sufficient cause, but delay must be explained convincingly.

The proviso to section 67 is the condition that most affects businesses: an appeal by a person required to pay an amount under the order is not entertained unless that person has deposited 50% of the amount. Under the 1986 Act, the deposit was the lower of half the amount and fifty thousand rupees; the 2019 Act removed the cap, so on a large award the deposit can be very substantial. The deposit is made with the Registry or as the Court directs. Whether it can be released to the consumer while the appeal is pending, with or without security, is in the Court's discretion and is often the first contested question.

Interest continues to run on an award unless the Court directs otherwise, which is another reason to file early and to seek directions on the deposit at the first hearing.

Before going to the Supreme Court, consider whether the problem is one the National Commission can correct itself. Section 60 of the Act lets it review its own order for an error apparent on the face of the record, on an application made within 30 days. A review suits an arithmetical slip, an overlooked document or a direction that contradicts the findings. It is not a substitute for an appeal on the merits, and because the appeal clock keeps running, both should be planned together.

What the Supreme Court examines on appeal

A section 67 appeal is a statutory first appeal on facts and law, wider than a Special Leave Petition. Arguments that commonly arise include:

• whether the complainant is a consumer at all, or bought the goods or service for a commercial purpose, which takes the case outside the Act;
• whether the complaint was within the two-year limitation of section 69, counted from when the cause of action arose;
• whether the compensation awarded is linked to actual loss, or duplicates interest and compensation for the same delay;
• in builder cases, whether delay was caused by events the agreement excuses, and whether a refund or possession with compensation is the right remedy;
• in insurance cases, whether the repudiation rested on a policy condition that was disclosed and that actually applied.

The Court may admit the appeal and issue notice, dismiss it at admission, or grant a limited stay on condition of further deposit.

Preparing the appeal

1. 1.Obtain the certified copy of the National Commission order and the complete record, including the complaint, version, evidence affidavits and written arguments.
2. 2.Confirm the jurisdiction under which the order was made, which decides the forum.
3. 3.Calculate the 50% deposit precisely and arrange it, with an application for directions on how it is to be held.
4. 4.Draft the grounds and a short synopsis with a list of dates.
5. 5.File through an Advocate-on-Record and seek a stay of execution, since an unpaid award can otherwise be enforced and non-compliance can attract penalties under section 72.

For a consumer defending an appeal, the work is the opposite: resisting stay, seeking release of the deposit and pressing for an early hearing. Our Supreme Court chamber handles both, and our real estate litigation team handles the underlying builder disputes.