H.U.D.A. vs SHAKUNTALA DEVI

The Supreme Court held that interest at the rate of 18% per annum 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 restored the State Forum's order, which allowed interest at 15% after two years from the date of deposit and awarded Rs. 5,000 for mental harassment. The National Commission's order granting 18% interest was set aside, affirming the need for a case-specific approach to damages.