Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Consumer Protection Act 1986 : s. 14(1)(d) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Usurious Loans Act, 1918 (10 of 1918) Public Premises (eviction of Unauthorised Occupants) Act, 1971 (40 of 1971) Consumer Protection Act, 1986 (68 of 1986) Micro Small and Medium Enterprises Development Act, 2006 (27 of 2006) Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993 (32 of 1993) Indian Trusts Act, 1882 (2 of 1882) Payment of Gratuity Act, 1972 (39 of 1972) Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Consumer Protection Act 1986 : s. 14(1)(d) – Award of compound interest by Consumer Fora – Justification of – On facts, consumer complaints by the complainant-respondent alleging deficiency of service on the part of the appellants-builder for having failed to deliver the possession of three flats booked by her, even after expiry of the agreed period and despite the fact that she had admittedly made payment of 60% of the total sale consideration – Dismissed by the District Forum – However, the State Commission awarded compound interest in favor of the respondent @ 14 %, relying upon Dr. Manjeet Kaur Monga’s case – National Commission upheld the same – On appeal, held: State Commission and the National Commission passed rather assumptive orders on the basis of the decision in Dr. Monga that compound interest was required to be allowed – Various factors recounted on behalf of the respondent, including excessive harassment and denial of the fruits of her investment could all lead to a reasonable amount of compensation but, there appears absolutely no reason that compound interest be allowed in this matter – Award of compound interest had neither any foundation in the record nor any backing in law nor the Consumer Fora took care to examine the contours of their jurisdiction and the requirements of proper assessment, if at all any compensation and/or punitive damages were sought to be granted – Awarding of compound interest with reference to Dr. Monga’s case and without examining any other factor has led to serious inconsistencies; and if the award as made is approved, it could only lead to unjust enrichment of the respondent in the name of disgorgement of benefits purportedly derived by the appellants – Thus, the impugned orders cannot be sustained and is set aside – However, the respondent allowed to retain the sum of money already received by her only because of peculiar circumstances of this case. Judgment/order: Precedent – Ascertainment of – Held: Judgment is an authority only in regard to its ratio which is required to be discerned – Decision cannot be regarded as an authority in regard to its conclusion alone or even in relation to what could be deduced therefrom. |
Judge | Hon'ble Mr. Justice Dinesh Maheshwari |
Neutral Citation | 2023 INSC 391 |
Petitioner | M/s Suneja Towers Private Limited & Anr. |
Respondent | Anita Merchant |
SCR | [2023] 5 S.C.R. 1092 |
Judgement Date | 2023-04-18 |
Case Number | 2892- 2894 |
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