H.U.D.A. vs SOM NATH

The Supreme Court held that interest at the rate of 18% per annum cannot be uniformly granted in consumer cases, emphasizing that compensation must correlate with actual loss or injury as established in Ghaziabad Development Authority vs. Balbir Singh (2004) 5 SCC 65. The Court set aside the National Commission's order that allowed such interest without considering the specifics of each case, mandating that consumer forums must determine deficiency in service or misfeasance in public office before awarding damages. The Court directed the appellants to deliver possession of the plot to the respondent without further demands.