H.U.D.A. vs DHEER SINGH BHATTI

The Supreme Court held that interest at the rate of 18% per annum cannot be uniformly 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 must correlate with actual loss or injury and be based on a finding of deficiency in service or misfeasance in public office. The National Commission's order granting interest was set aside, and it was clarified that TDS deductions were not permissible, requiring the appellants to pay the deducted amount with interest at 12%. The Court upheld the principle that compensation must be justified by the facts of each case.