Reasoned compensation assessment required before fixing damages; unsupported quantum was set aside and remitted for fresh determination.

An award of compensation must disclose a clear basis of assessment, so the quantum bears a discernible relationship to the default, delay, or harassment found. Where the order fixing compensation does not explain how the amount was reached, the proper course is to set aside the award and remit the matter for fresh determination with reasons. The Forum may also consider any offer of alternative accommodation. Here, the compensation award of Rs. 7 lakhs was set aside and the compensation issue was remanded for reconsideration.

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Issues: Whether the award of compensation of Rs. 7 lakhs could be sustained without indicating the basis of assessment and whether the compensation aspect required reconsideration.

Analysis: An award of damages or compensation must disclose the basis on which the amount is arrived at, so that the sum awarded bears a discernible relationship to the default, delay, or harassment found. The order under challenge did not sufficiently set out the reasons for fixing the compensation amount. In these circumstances, the proper course was to remit the matter for a fresh determination of compensation, with reasons to support any amount ultimately awarded. The Forum was also left free to consider any offer of alternative accommodation.

Conclusion: The compensation award of Rs. 7 lakhs was set aside and the issue of compensation was remanded for fresh consideration.

Ratio Decidendi: A compensation award must be supported by an articulated basis of assessment and a reasoned explanation for the quantum fixed.

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