There can be no dispute to the principles laid down inPrashant
Kumar Shahi's case and Bihar State Housing Board's case (supra). It
is on these principles that it is already held that awaring interest at a
flat rate of 18% is not justified. It is clear that in all these cases
interest is being awarded as and by way of compensation/damages.
Whilst so awarding it must be shown that there is relationship between
the amount awarded and the default/unjustifiable delay/harassment.
It is thus necessary that there be separate awards under each such
head with reasons why such award is justified. However, the
principles that interest must be granted at the current rate of interest
is only applicable where the proceeding are for recovery of debt or
damages. They apply where a refund of amount is being claimed and
the direction is to refund amounts with interest. The principles which
govern grant of interest do not apply to grant of compensation. For
this reason also it becomes necessary to consider facts and award
damage/compensation under various heads.