In Brief
A consumer purchased three residential flats in 1989 from a builder, paying 60% of the price, but the developer failed to deliver them within the agreed period. The lower Consumer Forums awarded refund of deposits with compound interest at 14% per annum, citing the earlier Dr. Manjeet Kaur Monga case. The Supreme Court held that while Consumer Forums have broad discretion to award compensation for deficiency of service, compound interest is not ordinarily an appropriate measure in monetary refund cases without detailed examination of relevant factors. The Court disapproved the lower orders but allowed the consumer to retain amounts already received, recognising the unusual circumstances and the fact that the same builder had previously been held liable under similar facts.
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