Contractual refund interest cannot be enhanced without proof of unfair trade practice or other statutory wrongdoing.

In the absence of any proved unfair, restrictive or monopolistic trade practice, a statutory authority cannot alter an agreed contractual rate of interest on refund or award litigation charges on equitable considerations alone. The Court noted that the refund of the registration amount had been made at the contractual rate, and there was no material, pleading, or finding showing unfair conduct, unreasonable pricing, or any duty to place the deposit in higher-yield investments. The enhancement of interest to 12% per annum and the award of litigation charges were therefore unjustified, and the appellant succeeded.

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Issues: Whether the Commission could enhance the contractual rate of interest on refund of the registration amount and award litigation charges in the absence of any finding of unfair trade practice or restrictive or monopolistic trade practice.

Analysis: The statutory framework under the Monopolies and Restrictive Trade Practices Act, 1969 empowered inquiry into monopolistic trade practice, restrictive trade practice and unfair trade practice. The respondent's grievance on cancellation charges had already failed, and there was no finding that the appellant's conduct in refunding the registration amount with interest at the agreed contractual rate was unfair, unreasonable or contrary to the declared scheme. The award of a higher rate of interest was made only on the view that the refund interest should not be lower than the default interest charged from applicants, but no material, pleading or proof established any unfair trade practice, unreasonable pricing, or obligation to place the deposits in higher-yield investments. Litigation charges were likewise unsupported once no wrongful conduct was found.

Conclusion: The enhancement of interest to 12% per annum and the award of litigation charges were unjustified, and the appellant succeeded.

Ratio Decidendi: In the absence of a proved unfair, restrictive or monopolistic trade practice, a statutory authority cannot rewrite an agreed contractual rate of interest or award compensation on mere notions of equity.

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