H.U.D.A. vs PREM KUMAR AGARWAL

The Supreme Court held that the National Consumer Disputes Redressal Commission's practice of awarding a uniform interest rate of 18% per annum for compensation in cases of alternative plot allotment is unsustainable. The Court emphasized that compensation must correlate with the actual loss or injury suffered, as established in Ghaziabad Development Authority v. Balbir Singh, and should vary based on the specifics of each case. The Court directed that the Commission must assess losses individually rather than applying a fixed rate uniformly, thereby setting aside the Commission's order regarding the interest rate.