Consumer Courts can impose conditional Stay

The appex Court of the country in its one of the hearing of appeal has delivered a  judgement on 7th July, 2014 that the Consumer Courts can impose conditional Stay. The case is related with Shreenath Corporation. This corporation had constructed a building and handed over possession of the flats in 1992, but within nine years, a portion of the building collapsed and many people were killed and several injured. Then they filed a complaint with the help of (CERS) against the builder.

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Then the Commission ordered the firm to pay compensation starting from Rs. 1.5 lakh to Rs. 18.6 lakh, along with 9% interest. Afterwards, the builder appealed to National Commission According to (CP) act the party have to deposit certain amount of money which the builder deposited Rs. 35,000 per appeal.

The builder also applied for an interim stay against the verdict of the National Commission. The Commission granted the interim stay but directed the builder to deposited 50% of the principal amount with in three months so that the amount can be deposited in a nationalized bank in the form of fixed deposit.

Then again the builder challenged this order in Supreme Court of India saying that he had already deposited the required money for this. According to Supreme Court Rs. 35,000 was a pre deposited money which is taken at the time of appealing in (NC), it is changed to avoid frequent appeals and it has no link with the dispute. The further deposited will be demanded at the timing on hearing of the application for interim stay. The amount would be decided according to the pros and cons of the party appeal seeking a stay.

Then the Supreme Court declared that what ever the National Commission has done; is within the set rules of the judiciary and dismissed the builder’s appeal.


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