Pre-deposit non-compliance does not make an appellate authority functus officio; restored appeal must be heard on merits.

An appellate authority does not become functus officio where an appeal was dismissed only for non-compliance with a mandatory pre-deposit and not on merits. On compliance with the deposit requirement, the appeal may be restored and heard in accordance with law. The earlier dismissal order having recorded only failure to make the 7.5% pre-deposit, the refusal to entertain restoration on the basis of lack of jurisdiction was a legal error. The impugned appellate order was set aside and the matter remitted for fresh consideration after verification of the pre-deposit.

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Issues: Whether the Appellate Authority was justified in rejecting the petitioner's second appeal as functus officio after the earlier dismissal was only for non-compliance with the pre-deposit requirement, and whether the appeal ought to be restored for decision on merits.

Analysis: The earlier appellate order recorded dismissal only for failure to deposit the mandatory 7.5% pre-deposit and expressly did not decide the dispute on merits. In that situation, the later deposit request could not be treated as barred by functus officio, because the appeal had not been finally adjudicated on the substantive controversy. The Authority therefore committed a legal error in refusing to entertain the restored appeal on the assumption that it had no further jurisdiction. The proper course was to verify the deposit and proceed to decide the appeal in accordance with law.

Conclusion: The rejection order was unsustainable, and the petitioner was entitled to restoration of the appeal for decision on merits after verification of the pre-deposit.

Final Conclusion: The writ petition succeeded, the impugned appellate order was set aside, and the matter was remitted to the Appellate Authority for fresh consideration in accordance with law.

Ratio Decidendi: Where an appeal is dismissed only for non-compliance with a mandatory pre-deposit and not on merits, the appellate authority does not become functus officio and may restore the appeal upon compliance with the deposit requirement.

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