H.U.D.A. vs MUNSHI RAM

The Supreme Court held that the National Consumer Disputes Redressal Commission cannot uniformly grant interest at 18% per annum 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 must correlate with actual loss or injury and that the Commission must find deficiency in service or misfeasance in public office. The Court set aside the National Commission's order and directed the appellants to refund TDS deducted from compensation payments, with interest at 12%. This order is not to be treated as a precedent for future cases.