In Brief
A builder cancelled a flat allotment and refunded the buyer's instalments (Rs. 4,53,850) via a pay order in 2005. The Competition Appellate Tribunal awarded the buyer 15% compound interest until 30.04.2005. The buyer appealed, seeking interest until actual payment; the builder appealed, contesting any interest liability. The Supreme Court upheld interest until 30.04.2005 as valid 'compensation' under the MRTP Act. However, a complicating issue arose: the bank had debited the builder's account for the pay order but the buyer never encashed it. The Court remitted to the Tribunal the questions of whether compensation should cover the post-cancellation period and whether the bank owes interest on unencashed funds. The bank was impleaded as a respondent for proper adjudication.
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