H.U.D.A. vs 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 or harassment must correlate with actual loss or injury and be based on findings of deficiency in service or misfeasance in public office. The National Commission's order awarding interest at a flat rate was set aside, reinforcing the need for case-specific determinations.