H.U.D.A. vs SHANTI DEVI

The Supreme Court held that interest at a uniform rate of 18% 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 failing to apply these principles, and the appellants were directed to deliver possession of the plot to the respondent without further demands.