H.U.D.A. vs MUKESH KUMAR

The Supreme Court held that the National Consumer Disputes Redressal Commission cannot grant interest at a uniform rate of 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 determine deficiency in service or misfeasance in public office. The Court set aside the National Commission's order and directed the recalculation of interest at 12% per annum from the date of each deposit until payment, as the appellants failed to deliver possession of the allotted plot.