Facts

• Ghaziabad Development Authority (GDA), established under Section 4 of the Uttar Pradesh Urban Planning and Development Act, 1973, was the Appellant. It promote and advertise schemes for the allotment of developed plots for constructing apartments or flats for allottees.
• The Respondents in this case were Union of India and the claimants who subscribed to various schemes promoted by the Ghaziabad Development Authority (GDA) and for allotment of developed plots for construction of apartments or flats.
• Claimants initially filed complaints before the Monopoly and Restrictive Trade Practices (MRTP) Commission, Consumer Disputes Redressal Forum, and civil writ petitions under Article 226 of the Constitution before the High Court of Allahabad.
• Aggrieved by the decision of the Commission, forum, and High Court of Allahabad the present appeal was raised.
  

Background/ Procedural Posture:

Some claimants filed complaints before the Monopoly and Restrictive Trade Practices Commission, and some claimants raised disputes before the Consumer Disputes Redressal Forum.

Two Civil writ petitions were also filed before the Hon’ble High court of Allahabad for the refund. Decisions of these Forums were given below:

• MRTP Commission and Consumer forum: Found GDA guilty of unreasonable delay or failure to perform and directed the refund of amounts with interest.
• High Court of Allahabad: Held a term in the GDA's brochure, which denied interest on refunded amounts if applicants withdrew or surrendered, as unconscionable and violative of Article 14 of the Constitution, directing a refund with 12% interest per annum.
• Supreme Court of India: Aggrieved by the decision of MRTP Commission, Forum, and High Court the appeals were raised by people before the Supreme Court. The Supreme Court decided to hear all the appeals together as they had common question of law and Dispose of the matter with the common judgement.
  
  
  

Main Issue:

1. Whether compensation can be awarded for mental agony suffered by the claimants?
2. Whether interest can be awarded on the amount found due and payable by the GDA to the claimants in the absence of any contract or promise? If the interest can be awarded then what will be the rate of interest that can be granted? (Page 2)