Bhopal Development Authority vs Prakash Chand Jain

The Supreme Court determined that an interest rate of 18% was excessive and established that a fair rate of interest in this case should be 12%. The Court reinstated the order of the District Consumer Disputes Forum, mandating that interest be calculated on the principal amount of Rs.4,65,938/- for the period from 18th June 1994 to 27th February 1997, with simple interest applicable. The Court clarified that unpaid interest would accrue further interest if not paid within three months.