Haryana Urban Development Authority vs Smt. Dropadi Devi

The Supreme Court held that interest at a uniform rate of 18% per annum cannot be granted by Consumer Forums without considering the specific facts of each case, as established in Ghaziabad Development Authority vs. Balbir Singh (2004) 5 SCC 65. The Court emphasized that compensation for mental agony or harassment 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 was set aside for not adhering to these principles, and the case was remanded for proper determination of compensation based on the established guidelines.