Haryana Urban Development Authority vs K. C. Kad

The Supreme Court held that interest at the rate of 18% cannot be uniformly granted in consumer cases, emphasizing that compensation must correlate with actual loss or injury as established in Ghaziabad Development Authority vs. Balbir Singh (2004) 5 SCC 65. The Court set aside the National Commission's order increasing interest to 18% and directed the District Forum to calculate compensation for escalation in construction costs and awarded simple interest at 12% for mental agony from the date of deposit until payment. The judgment reinforces the need for consumer forums to assess deficiency in service and misfeasance in public office before awarding damages.