Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: September 29, 2026

Case Overview

  • Appeal: Civil Appeal No. /2026 (SLP(C) No. 14486/2025) filed by the Commissioner, Mysore Urban Development Authority against Lt. Gen (Retd.) BNBM Prasad & Anr.
  • Origin: Respondent was allotted a site under the ‘Ex‑servicemen’ category on 25‑02‑2001, paying ₹5,000 with application, ₹24,000 (due within 15 days) on 02‑06‑2001, and ₹1,31,000 (due within 90 days) on 29‑11‑2001.
  • The Authority failed to execute the lease deed or cancel the allotment, prompting the respondent to approach the District Consumer Disputes Redressal Forum (DCDRF), Mysore.
  • DCDRF Order dated 22‑07‑2016 directed the Authority to allot site No. 566 (Hanchya‑Sathagally B‑Zone) and execute possession documents within a stipulated time, imposing a penalty of ₹500 per day for default, compensation of ₹10,000 for deficiency in service, costs of ₹2,000, and interest at 10% per annum on delayed payments.
  • The Authority appealed to the State Consumer Disputes Redressal Commission (SCDRC); the appeal was allowed on 11‑01‑2024, dismissing the consumer complaint.
  • Respondent challenged the SCDRC order before the High Court of Karnataka (Writ Petition No. 14296/2024). The Division Bench quashed the SCDRC order, restored the DCDRF order, but permitted the Authority to deduct ₹21,930 as interest on delayed payments.
  • The Supreme Court found that despite the respondent’s minor delay, the Authority retained the full payment without allotting the site, making it liable for allotment and compensation.

Final Outcome

  • The Supreme Court set aside the DCDRF and High Court orders to the extent they conflict with this judgment.
  • The Authority is directed to allot site No. 566 to Lt. Gen BNBM Prasad, execute all necessary documents, and deliver possession within 30 days from the order date.
  • The Authority must pay compensation of ₹2,40,000 to the respondent within the same 30‑day period.- The appeal is disposed of, and any pending applications are dismissed.

Topics: Consumer Protection, Urban Development