In Brief
Chandigarh Housing Board and a developer disputed liability for compensation, mental harassment damages, and litigation costs awarded to a flat buyer by the National Consumer Disputes Redressal Commission. The Supreme Court held that mental harassment and litigation costs do not fall within the fixed compensation contemplated by Clause 9(c) of the Tripartite Agreement, which applies only when the developer fails to deliver possession within 36 months. Consequently, liability should be apportioned between the developer (70%) and Housing Board (30%). The Court upheld the 10% p.a. interest rate and directed the Housing Board to pay its share plus an additional 1% p.a. interest within eight weeks, dismissing the appeal.
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