This article is structured to guide you through every aspect of filing a Second Appeal before the Hon'ble NCDRC. The Table of Contents below outlines the key areas we will cover, ensuring you have a clear understanding of this specific appellate procedure.

1        Understanding NCDRC Second Appeals

A Second Appeal to the Hon'ble National Consumer Disputes Redressal Commission (NCDRC) offers an opportunity for an aggrieved party to challenge an appellate order passed by a Hon'ble State Consumer Disputes Redressal Commission (State Commission). However, unlike a First Appeal, a Second Appeal has a more stringent admission criterion.

1.1     Legal Basis under the Consumer Protection Act, 2019

The foundation for filing a Second Appeal before the Hon'ble NCDRC is laid down in the Consumer Protection Act, 2019 (hereinafter referred to as the Act).

1. Sub-section 51(2), 51(3), and 51(4) of the Act 2019 empowers the aggrieved person to file a second appeal before the Hon'ble NCDRC against the State Consumer Commission’s order passed while adjudicating a First Appeal against a District Consumer Commission’s order passed in a consumer complaint.
2. Specifically, Section 51(2) of the Act states: Save as otherwise expressly provided under this Act or by any other law for the time being in force, an appeal shall lie to the National Commission from any order passed in appeal by any State Commission, if the National Commission is satisfied that the case involves a substantial question of law.

1.2     Against Which Orders Can a Second Appeal Be Filed?

A Second Appeal can be filed before the Hon'ble NCDRC against the State Consumer Commission’s order passed while adjudicating a First Appeal against a District Consumer Commission’s order passed in a consumer complaint. This means the order being challenged in the Second Appeal is not an original order of the Hon'ble State Commission but an order passed by it in its appellate capacity.

2       Cornerstone: Substantial Question of Law

The defining feature and the primary hurdle for a Second Appeal before the Hon'ble NCDRC is the requirement of a substantial question of law.

2.1     What Constitutes a Substantial Question of Law?

While the Act or the provided documents do not offer an exhaustive definition, a substantial question of law typically refers to a question of law that directly and substantially affects the rights of the parties involved and is not a mere question of fact. It should be a debatable question of law not previously settled by a binding precedent, or a question that requires a fresh interpretation of existing law. The Hon'ble NCDRC must be satisfied that such a question is involved in the case.

2.2     Mandatory Requirement for Admission

1. The important point for consideration is that an aggrieved person must raise a substantive question of law in the Second Appeal.
2. Where the first appeal can be considered as a matter of right for the Appellant, the second appeal solely depends on the substantive question of law involved in the appeal.
3. The Hon'ble NCDRC will only entertain a Second Appeal if the National Commission is satisfied that the case involves a substantial question of law.

2.3     Precise Statement in Memorandum of Appeal

The appellant must clearly articulate the substantial question(s) of law in the appeal documents.

Section 51(3) of the Act mandates: In an appeal involving a question of law, the memorandum of appeal shall precisely state the substantial question of law involved in the appeal.

2.4     NCDRC's Role in Formulating the Question

If the Hon'ble NCDRC is satisfied that a substantial question of law is involved, it plays an active role.

1. Section 51(4) of the Act states: Where the National Commission is satisfied that a substantial question of law is involved in any case, it shall formulate that question and hear the appeal on that question.
2. Once the Hon'ble NCDRC forum is satisfied that the substantive question of law existed in the second appeal, the forum shall formulate the substantive question of law and hear the appeal only on the formulated substantive question of law.
3. The proviso to Section 51(4) of the Act further allows that nothing in this sub-section shall be deemed to take away or abridge the power of the National Commission to hear, for reasons to be recorded in writing, the appeal on any other substantial question of law, if it is satisfied that the case involves such question.

3       Timeline and Condonation of Delay

3.1     The 30-Day Filing Window

Similar to a First Appeal, a Second Appeal must be filed within a specific timeframe.

1. Generally, appeals under Section 51 of the Act are to be preferred within a period of thirty days from the date of the order.
2. The Proforma for Filing Second Appeal also requires stating the date on which the free certified copy of impugned order was received from the State Commission.

3.2     Procedure for Condonation of Delay

If an appellant fails to file the Second Appeal within the 30-day period, they can seek condonation of delay.

1. The first proviso to Section 51(1) of the Act, which applies broadly to appeals under this section, allows the Hon'ble National Commission to entertain an appeal after thirty days if it is satisfied that there was sufficient cause for not filing it within that period.
2. The appellant is required to file an application seeking condonation of delay for the number of days beyond the expiry of the thirty days, if the appellant failed to file the appeal within the statutory timelines of 30 days.
3. This application must be supported by a notarised affidavit setting forth the facts and reasons for the delay.
4. Rule 14(4) of the Consumer Protection (Consumer Disputes Redressal Commissions) Rules, 2020 (hereinafter CDRC Rules, 2020), applicable to appeals before the National Commission, mandates that an appeal presented after the limitation period shall be accompanied by an application supported by an affidavit detailing the reasons for the delay.

4       Pre-requisites for Filing

4.1     Statutory Deposit: The 50% Rule

A significant pre-requisite for filing an appeal, including a Second Appeal, if the order being appealed requires the appellant to pay an amount, is the statutory deposit.

1. The second proviso to Section 51(1) of the Act stipulates that no appeal by a person, who is required to pay any amount in terms of an order of the State Commission, shall be entertained by the National Commission unless the appellant has deposited fifty per cent. of that amount in the manner as may be prescribed.
2. The manner of deposit is prescribed by Rule 13 of the CDRC Rules, 2020, which requires the amount to be remitted as a crossed Demand Draft drawn on a nationalised bank in favour of the Registrar, National Commission, payable at New Delhi.

5       Essential Documentation for NCDRC Second Appeal

Meticulous documentation is crucial for a Second Appeal. The requirements are specific and must be adhered to for the appeal to be considered. The following documents must be paginated in the specified seriatim for a Second Appeal:

1.    Index [Detailed index] with running page Nos.

2.    Proforma for Filing Second Appeal.

3.    Notarised Affidavit in support of pleadings filed before District Commission.

4.    Synopsis with List of Dates and Events.

5.    Memo of Parties (with complete addresses, mobile no., telephone no. & email ids of both the parties as well as the Counsel).

6.    Second Appeal with Notarised affidavit.

7.    Certified copy of order of State Commission.

8.    Copy of order of District Commission.

9.    Annexures:

(A) Copy of Complaint.

(B) Reply.

(C) Rejoinder.

(D) Documents filed before District Commission as well as copy of evidence if recorded and other documents as filed with the State Commission

10.                  Applications (IA), if any:

o   Application for Stay with Notarised affidavit, if any.

o   Application for condonation of delay with Notarised affidavit, if beyond limitation.

11.                  Vakalatnama

12.                  Demand Draft for Statutory Deposit (As discussed under pre-requisites, if applicable).

6       Step-by-Step Filing and Hearing Procedure

The procedure for a Second Appeal mirrors that of other appeals in some aspects but has unique elements concerning the substantial question of law.

6.1     Presentation and Scrutiny of Appeal

1. The Appeal Memorandum must be presented by the appellant or their authorised agent to the Hon'ble National Commission in person or sent by registered post.
2. It should be preferably typed or in legible handwriting, setting forth concisely under distinct heads the grounds of appeal, numbered consecutively, without argument or narrative. The substantial question of law must be precisely stated.
3. Upon filing, the appeal undergoes scrutiny by the Registrar. If defects are found, the party is informed and given fifteen days to rectify them.

6.2     Admission Stage: Focus on Substantial Question of Law

1. This is a critical stage for Second Appeals. The Hon'ble NCDRC will primarily examine whether the appeal involves a substantial question of law.
2. The Hon'ble NCDRC forum can use its discretion to dismiss the second appeal, presumably if it is not satisfied that such a question is involved.
3. If satisfied, the Hon'ble NCDRC will formulate the substantial question(s) of law.
4. Notice is then issued to the respondents.

6.3     Hearing Exclusively on Formulated Questions

• The Hon'ble National Commission shall formulate that question and hear the appeal on that question.
• The appellant generally cannot urge or be heard on any ground of appeal not set forth in the memorandum, except with the leave of the Hon'ble National Commission.
• However, the Hon'ble NCDRC is not confined to the grounds in the memorandum and can rest its decision on other grounds provided the affected party is given an opportunity of being heard. The proviso to Section 51(4) also allows hearing on other substantial questions of law for reasons recorded.
• The general procedures regarding appearance of parties, ex-parte decisions, adjournments, and aim for disposal within 90 days from admission, as detailed in Rule 14 of the CDRC Rules, 2020, would apply.
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7       NCDRC Second Appeal vs. Revision Petition: A Brief Perspective

A key question for many appellants is whether to file a second appeal or a revision petition against the State Consumer Commission’s order in a first appeal.

The second appeal comes with two significant hurdles—proving a substantive question of law and depositing 50% of the awarded amount.

In most practical scenarios, appellants opt for a revision petition, as the chances of obtaining a favorable outcome are generally higher in revisional jurisdiction than in a second appeal before the Hon'ble NCDRC. This strategic consideration is vital for litigants.

8       Conclusion

Filing a Second Appeal before the Hon'ble NCDRC is a nuanced process, heavily contingent on successfully demonstrating a substantial question of law. The procedural requirements, including timelines, documentation, and the mandatory pre-deposit, must be strictly adhered to. While it offers a path to challenge appellate orders of Hon'ble State Commissions, the high threshold for admission means appellants must carefully prepare their case, focusing squarely on the legal questions involved. Understanding the distinction and strategic implications of choosing a Second Appeal over other remedies like a Revision Petition is also crucial for an effective legal strategy.