T. S. THAKUR, D. Y. CHANDRACHUD, L. NAGESWARA RAO
CHIEF ADMINISTRATOR, H. U. D. A. – Appellant
Versus
SHAKUNTLA DEVI – Respondent
The Supreme Court in this case did not explicitly rule that the consumer commission erred solely in awarding compensation for mental agony and physical discomfort without direct evidence of a substantial deficiency in service. Instead, the Court emphasized that the computation of compensation must be fair, reasonable, and proportionate to the actual loss or injury suffered by the consumer. The Court highlighted that compensation should not be arbitrary and must take into account relevant factors, including the nature of the injury or loss, and the conduct of the parties involved (!) (!) .
Furthermore, the Court pointed out that in cases where there is a delay or deficiency in service, the award of interest might suffice to compensate for the injury, and excessive or arbitrary compensation would be unjustified. The Court specifically set aside the higher compensation awarded, indicating that the amount must be justified by the circumstances and the actual damage caused, rather than awarded in a manner that is excessive or unreasoned (!) .
Thus, the Court's ruling underscores the importance of proportionality and fairness in awarding compensation, rather than endorsing awards based solely on the presence of injury or hardship without clear evidence or proper assessment of the extent of loss or injury (!) (!) .
JUDGMENT
L. Nageswara Rao, J. - This Appeal is filed challenging the order dated 25.09.2007 of the National Consumer Disputes Redressal Commission, New Delhi (hereinafter referred to as ‘National Commission’) by which an order of the State Consumer Disputes Redressal Commission, Union Territory, Chandigarh (hereinafter referred to as ‘State Commission') awarding compensation to the Respondent was confirmed.
2. The Respondent was allotted Plot No. 40, measuring 40 marlas in Sector 8, Urban Estate, Karnal on 03.04.1987. As physical possession of the plot was not given to her by the Appellants, the Respondent filed Original Complaint No. 54 of 1997 before the State Commission. In the said complaint, the Respondent alleged that she had paid the full price of the plot including the enhancement fee as per the terms and conditions of the allotment letter. She averred that she was not given the possession of the plot in spite of repeated requests. The Respondent also pleaded in the complaint that the Appellants were required to complete the development work within 2 years from the date of the allotment letter and hand over the physical possession. She further stated that she wanted to constr
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