LLexfolio

After the order: enforcement of consumer orders and mediation (sections 71 and 72)

A consumer order is enforced under section 71 of the Consumer Protection Act, 2019 like a civil court decree, using Order XXI of the Code of Civil Procedure, and wilful non-compliance is a separate offence under section 72, punishable with imprisonment of one month to three years, or a fine of ₹25,000 to ₹1 lakh, or both. Mediation under section 37 is possible only with the written consent of both parties, and no appeal lies against a mediated settlement order. If the other side appeals, it must first deposit 50% of the amount ordered.

PointPosition
Execution of ordersSection 71: enforced as a decree; Order XXI CPC applies as far as possible
Penalty for non-complianceSection 72: 1 month to 3 years, or fine ₹25,000 to ₹1 lakh, or both
Appeal against a s.72 orderSection 73, within 30 days
MediationSection 37: at first hearing or later, only with written consent of both sides
Settlement orderTo be passed within 7 days of the mediation report (s.81(1)); no appeal against it
Appeal, District to State45 days (s.41), with 50% deposit by the party ordered to pay
Appeal, State to National30 days (s.51), with 50% deposit
ReviewSection 40: error apparent on the record, application within 30 days

Winning is half the job: the gap between an order and payment

Many consumers celebrate an order and then find the company does not pay. This stage is where patience and paperwork count. The order will usually say how much to pay, within what period (often 30 or 45 days) and with what interest. Download the signed copy from e-Jagriti and note the date of the order, because appeal and compliance periods run from it.

The first practical step is to wait until the compliance period ends, then write a short reminder with the order attached, asking for payment into your bank account and giving your account details. Send it by email and Speed Post. Many companies pay at this point, because an unpaid order puts their officers within reach of section 72.

Execution under section 71

Section 71 says each order of a District, State or National Commission shall be enforced by the Commission in the same manner as if it were a decree of a court in a suit, and Order XXI of the CPC applies as far as possible. Order XXI is the part of the CPC that deals with execution of decrees, including attachment of bank accounts and sale of property.

What to put in an execution application:

  1. Cause title with the original complaint number.
  2. A copy of the final order and proof that it was served or known to the other side.
  3. The amount due, with interest calculated to the date of the application, in a short table.
  4. Facts showing non-compliance, with your reminder letter and its proof of delivery.
  5. Details of the opposite party’s bank accounts, property or assets, if you know them, and a request for attachment or other process under Order XXI.

Example: Geeta in Ranchi won an order for a refund of ₹46,000 with 9% interest in 45 days. Ninety days passed. She filed an execution application with an interest calculation and a separate application under section 72. On the first date the retailer’s representative brought a demand draft for the full amount.

Learn this properly, with a certificate. Module 4 covers hearings, mediation, appeals, execution and the section 72 penalty step by step. Filing a Consumer Complaint: Refunds, Compensation and e-Jagriti, ₹199: self-paced lessons, module quizzes and a 30-question final test; pass at 60% for a verifiable Lexfolio certificate. It is a certificate of completion, not a degree and not a licence to practise.

Penalty for non-compliance: section 72

Under section 72(1), whoever fails to comply with an order of a District, State or National Commission is punishable with imprisonment for not less than one month, which may extend to three years, or with a fine of not less than ₹25,000, which may extend to ₹1 lakh, or with both. For this purpose the Commission has the powers of a Judicial Magistrate of the first class (s.72(2)), and the offence is tried summarily (s.72(3)). An order under section 72 can be appealed within 30 days (s.73).

Section 71 recovers the money, and section 72 punishes defiance. You can use both together where the non-payment is deliberate. Be accurate in your application: state the order, the date, the period allowed and what remains unpaid. Do not allege more than the record shows.

Consumer mediation: what it is and when to accept it

The 2019 Act added mediation. Under section 37, at the first hearing after admission or at any later stage, if the Commission sees elements of a settlement that the parties may accept, it may refer the dispute to mediation, but only with the written consent of both parties. Mediation is held at the consumer mediation cell attached to the Commission, under the Consumer Protection (Mediation) Rules, 2020.

  • If the dispute is wholly settled, the Commission records the settlement and disposes of the case. The order is to be passed within seven days of receiving the settlement report (s.81(1)).
  • If partly settled, the settled issues are recorded and the rest is heard.
  • If it fails, the case goes back to the Commission.
  • No appeal lies against an order recording a mediated settlement.

The Mediation Rules exclude certain matters, such as medical negligence causing grievous injury or death and cases of serious fraud, forgery, coercion or criminal offences. The Mediation Act, 2023 also contains amendments touching consumer mediation, so check the current text if your case reaches that stage.

When to accept mediation: when the relief offered is close to what the Commission is likely to grant, the amount is paid at once, and the terms are clear. Since you cannot appeal later, insist that payment date, amount and interest are written into the settlement, and that the settlement says what happens on default. Do not sign terms you do not fully understand.

If the other side appeals

A company that loses may appeal. The appeal ladder is:

  • District Commission order to the State Commission within 45 days (s.41).
  • State Commission order, in a complaint it heard as the first forum, to the National Commission within 30 days (s.51).
  • National Commission order, in a complaint it heard as the first forum, to the Supreme Court within 30 days (s.67).

In each case, a party required to pay under the order must deposit 50% of the amount before the appeal is entertained, and the appellate forum may condone a late appeal for sufficient cause. The Supreme Court has also held that the National Commission, when staying an order, may direct a deposit of more than 50% or even the whole amount (Manohar Infrastructure and Constructions v. Sanjeev Kumar Sharma, 2021). If you win and the other side appeals, the deposit is a useful safeguard, and you may apply to withdraw it, depending on the appellate forum’s orders.

Review under section 40 is narrow. It lies only for an error apparent on the face of the record, such as an arithmetical mistake, on a party’s application within 30 days. It is not a second hearing.

Common mistakes after the order

  • Doing nothing after the compliance period, and letting years pass. Keep your own calendar.
  • Filing execution without an interest calculation or bank details.
  • Accepting a mediated settlement with vague terms.
  • Missing the 45 day appeal period when you are the losing party.
  • Forgetting to claim execution costs and interest to date.

Frequently asked questions

Is there a time limit for filing execution?

Do not wait. Ordinary civil execution has its own limitation rules, so file as soon as the compliance period ends and take advice if years have passed.

Can the company simply appeal to avoid paying?

It must first deposit 50% of the amount ordered before the appeal is entertained, under the provisos to ss.41, 51 and 67.

Can the company’s officers be jailed?

Section 72 provides imprisonment of one month to three years or a fine, or both, for failing to comply. The outcome depends on the facts and the Commission’s order.

Can I refuse mediation?

Yes. A reference needs the written consent of both parties.

Is mediation free?

Consumer mediation is conducted through the cell attached to the Commission. Check the Commission’s current notice on any charge.

Quick quiz

Q1. Under which section is a consumer order executed like a decree?

  1. Section 37
  2. Section 71
  3. Section 41
  4. Section 69
Show answer

Answer: B. Section 71 applies Order XXI of the CPC to enforcement of orders.

Q2. What deposit must a losing company make before appealing from the District Commission?

  1. 10%
  2. 25%
  3. 50%
  4. None
Show answer

Answer: C. 50% of the amount ordered, under the proviso to s.41.

Q3. Can a mediated settlement order be appealed?

  1. Yes, within 45 days
  2. Yes, within 30 days
  3. No
  4. Only by the complainant
Show answer

Answer: C. The third proviso to s.41 bars an appeal against an order under s.81(1).

Full course: Filing a Consumer Complaint, ₹199.

Sources

  • Consumer Protection Act, 2019: ss.37, 40, 41, 51, 67, 71, 72, 73 and 81(1)
  • Code of Civil Procedure, 1908, Order XXI
  • Consumer Protection (Mediation) Rules, 2020
  • Manohar Infrastructure and Constructions Pvt. Ltd. v. Sanjeev Kumar Sharma (Supreme Court, 2021)

This page is for education and general information, not legal advice for a specific case. Law as on 7 November 2026. Section references are to the Act as in force; check the current text before filing an execution or appeal.

Useful books for this topic

As an Amazon Associate, Lexfolio earns from qualifying purchases. Prices and availability are shown on Amazon.

Free CLAT PG 2027 sample: exam guide + 2 judgment passages

Get our 16 page CLAT PG starter free: the 2027 pattern, how to read judgment passages fast, the 25 key Supreme Court judgments of 2026, and two practice passages with 10 explained questions. Plus new free guides and law updates by email. Unsubscribe any time.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *