Haryana Urban Development Authority & ... vs A. K. Rampal

The Supreme Court held that interest at a uniform rate of 18% cannot be granted in all consumer cases, 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. In this case, the forfeiture of the deposit was deemed unjust due to the encumbrance on the allotted plot, leading to a directive for the Appellants to refund the deposit with interest at 12%.