H.U.D.A. vs DROPADI DEVI

The Supreme Court ruled that interest at a uniform rate of 18% per annum cannot be granted in all consumer cases, emphasizing that compensation must correlate with actual loss or injury as per the principles established in Ghaziabad Development Authority vs. Balbir Singh (2004) 5 SCC 65. The Court set aside the National Commission's order that indiscriminately awarded interest, mandating that consumer forums must assess each case's facts to determine appropriate compensation. The Court found that the respondent had overpaid and directed a reassessment of dues owed to him.