IN THE SUPREME COURT OF INDIA                                                       CIVIL APPELLATE JURISDICTION

       CIVIL APPEAL  No.8411-8412 of 2002            

Bhopal Development Authority  ....Appellant(s)

    Versus

Prakash Chand Jain .....Respondent(s)

                           O R D E R

1. We  have  heard  learned  counsel  for  the  appellant  as  well  as  the  

respondent.

2. In the circumstances of the case,  we are of the clear opinion that the  

interest at the rate of 18% would not be a fair rate of interest.  As has been held in  

other cases instead the interest at the rate of 12% would be the correct interest.  

We, therefore, put the parties back to the position as was arrived at by the order  

passed  by  the  District  Consumer  Disputes  Forum.   Therefore,  the  amount  of  

interest will  be calculated on Rs.4,65,938/- between the two dates i.e.  18th June,  

1994 to 27th February, 1997.  The interest so calculated on the principal amount of  

Rs.4,65,938/- was made payable by the District Forum within three months.  In  

default, it is clarified that the further interest will be charged on that amount of  

unpaid interest and the interest shall be calculated accordingly.  It shall be simple  

interest.

..2/-

:2:

3.       With these modifications, we dispose of the  appeals but without any order  

as to costs.

    ................J. [V.S. SIRPURKAR]   

.................J.                                   [R.M. LODHA]        NEW DELHI,      JANUARY 28, 2009.