H.U.D.A versus PREM KUMAR AGARWAL & ANR.

H.U.D.A versus PREM KUMAR AGARWAL & ANR.

Rate of interest on compensation for alternative plot allotment should be based on current rate rather than a fixed high rate; 12% interest is appropriate under prevailing circumstances.

Parties
Appellant: Haryana Urban Development Authority (HUDA); Respondent: Prem Kumar Agarwal; Respondent: Prem Kumar Agarwal & Anr.
Jurisdiction
India
Judgment Date
17 January 2008
Procedural Posture
Civil Appeal / Final Disposal
Outcome
Appeal partly allowed
Legal Topics
Allotment of Alternative Plot, Rate of Interest on Compensation
Consumer Law Property Law Allotment of Alternative Plot Rate of Interest on Compensation

Case Brief

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Parties

Haryana Urban Development Authority (HUDA)

Appellant

Prem Kumar Agarwal

Respondent

Prem Kumar Agarwal & Anr.

Respondent

Procedural Posture

Civil Appeal / Final Disposal

Legal Issues

  1. 1 What price HUDA is to charge for an alternative plot allotted to an allottee when possession of the originally allotted plot cannot be given for no fault of the allottee?
  2. 2 Whether the National Consumer Commission was justified in awarding interest at 18% per annum?

Ratio Decidendi

Rate of interest on compensation for alternative plot allotment should be based on current rate rather than a fixed high rate; 12% interest is appropriate under prevailing circumstances.

Court Disposition

Appeal partly allowed

Orders

  • Rate of interest reduced from 18% to 12% per annum; respondent entitled to 12% interest instead of 18% as fixed by the Commission.
  • No costs awarded.