GHAZIABAD DEVELOPMENT AUTHORITY vs CHANDRA BHAN SINGH

The Supreme Court held that interest at the rate of 18% per annum cannot be uniformly granted in all cases by Consumer Forums, as established in Ghaziabad Development Authority vs. Balbir Singh (2004) 5 SCC 65. The Court emphasized that compensation for mental agony must correlate with actual loss or injury due to misfeasance in public office. The Court directed that the determination of deficiency in service must precede any award of damages, thereby setting guidelines for future cases.