H.U.D.A. vs SOMA DEVI

The Supreme Court held that interest at the rate of 18% per annum cannot be uniformly granted in consumer cases, emphasizing that compensation must be based on a finding of loss or injury as per the principles established in Ghaziabad Development Authority vs. Balbir Singh (2004) 5 SCC 65. The Court reiterated that Consumer Forums must determine deficiency in service or misfeasance in public office before awarding damages. The Court ultimately upheld the modification of interest from 18% to 12% per annum and confirmed the refund of amounts paid by the Respondent, along with compensation for mental agony.