Haryana Urban Development Authority vs Mrs. Raj Mehta

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 and must be based on a finding of deficiency in service or misfeasance in public office. The National Commission's order granting such interest was set aside, reinforcing the need for individualized assessment in consumer disputes.