Case Note & Summary
The dispute arose from an appeal filed by M/s New Okhla Industrial Development Authority against the order of the National Consumer Disputes Redressal Commission, which awarded interest at the rate of 18% per annum to the respondent, Virender Narain Masaladan. The appellant contended that this rate was excessive and should not exceed 12% per annum. During the proceedings, the respondent's counsel, upon instructions from his client, expressed willingness to accept the reduced interest rate of 12%. Consequently, the Supreme Court modified the impugned order, adjusting the interest rate accordingly. The court noted that interest at the modified rate had already been paid to the respondent as per an interim order dated 10th May, 2002. The appeal was thus disposed of with the new interest rate. The court also corrected a clerical error in the previous order regarding the date of the interim order. The final decision reflected the agreement between the parties and ensured that the interest rate was set at a reasonable level.
Headnote
A) Consumer Law - Interest Rate - Modification of Interest Rate - Consumer Protection Act, 1986 - The court modified the interest rate awarded by the National Consumer Disputes Redressal Commission from 18% to 12% per annum based on the agreement between the parties. The respondent's counsel indicated satisfaction with the reduced rate, leading to the appeal's disposal with the modified interest rate. Held that the interest should be calculated at the agreed rate of 12% per annum (Paras Not mentioned).
Issue of Consideration
Whether the interest awarded at 18% per annum by the National Consumer Disputes Redressal Commission was excessive.
Final Decision
The Supreme Court modified the interest rate awarded by the National Consumer Disputes Redressal Commission from 18% to 12% per annum, based on the agreement between the parties. The appeal was disposed of accordingly.
Law Points
- Interest rate modification
- Consumer disputes
- Excessive interest
