HARYANA URBAN DEVELOPMENT AUTORITY vs SAURABH AGGARWAL

The Supreme Court held that interest at a uniform rate of 18% per annum cannot be 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 be based on a finding of loss or injury and must correlate with the actual damages suffered. The National Commission's order was set aside, and it was directed that compensation must be determined based on the specific facts of each case, rather than a blanket application of interest rates.