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CASE NO.: Appeal (civil)  8400 of 2002

PETITIONER: Ghaziabad Development Authority

RESPONDENT: Naresh Kumar Sharma

DATE OF JUDGMENT: 18/08/2004

BENCH: S. N. VARIAVA & ARIJIT PASAYAT

JUDGMENT: J U D G M E N T

S. N. VARIAVA, J.

Before this Court a large number of Appeals have been filed by  the Haryana Urban Development Authority and/or the Ghaziabad  Development Authority challenging Orders of the National Consumer  Disputes Redressal Commission, granting to Complainants, interest at  the rate of 18% per annum irrespective of the fact of each case.  This  Court has, in the case of Ghaziabad Development Authority vs. Balbir  Singh reported in (2004) 5 SCC 65, deprecated this practice.  This  Court has held that interest at the rate of 18% cannot be granted in all  cases irrespective of the facts of the case.  This Court has held that  the Consumer Forums could grant damages/compensation for mental  agony/harassment where it finds misfeasance in public office.  This  Court has held that such compensation is a recompense for the loss or  injury and it necessarily has to be based on a finding of loss or injury  and must co-relate with the amount of loss or injury.  This Court has  held that the Forum or the Commission thus had to determine that  there was deficiency in service and/or misfeasance in public office and  that it has resulted in loss or injury.  This Court has also laid down  certain other guidelines which the Forum or the Commission has to  follow in future cases.         This Court is now taking up the cases before it for disposal as  per principles set out in earlier judgment.  On taking the cases we find  that the copies of the Claim/Petitions made by the  Respondent/Complainant and the evidence, if any, led before the  District Forum are not in the paper book. This Court has before it the  Order of the District Forum.  The facts are thus taken from that Order.   In this case the Respondent was allotted a plot of land on 9th  March, 1989 in the Govindpuram Plot Scheme.  He deposited the  entire amount, but no plot was allotted to him. He thus filed a  complaint.   It appears that during the pendency of the complaint  before the District Forum possession was delivered to the Respondent  on 29th September, 1995.  The District Forum held that as possession  has been given belatedly compensation should be paid to the  Respondent by way of interest at the rate of 18% on the amounts  deposited by him from 1st January, 1992 till the possession was given.   The District Forum also directed payment of Rs. 1,000/- for mental  agony.   The State Forum dismissed the Appeal.  The National Forum  confirmed the payment of interest at the rate of 18% per annum. We are told that interest at the rate of 18% has been paid, but  some amount has been deducted as TDS.   We were shown Orders of  the State Forum and the National Forum holding that on interest  amounts no TDS can be deducted.  It could not be shown to us that  these Orders have been stayed by this Court and/or that there is any  contrary Order of this Court.  We are not going into the merits of such  an Order but once there is such an Order the Appellants have to

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comply with that Order.    They therefore cannot deduct TDS. The Appellants have already paid interest at the rate of 18% per  annum.  On the basis of the ratio laid down by us in the case of  Ghaziabad Development Authority vs. Balbir Singh (supra) the  Appellants cannot claim any refund.  The Appellants shall now pay,  within 4 weeks from today, the amount deducted as TDS with interest  at the rate of 18% per annum thereon till the date of payment. We clarify that this Order shall not be taken as a precedent in  any other matter having been passed on account of the special  features of the case.   The Forum/Commission will follow the principles  laid down by this Court in the case of Ghaziabad Development  Authority vs. Balbir Singh (supra) in future cases. This Appeal stands disposed off accordingly.