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Supreme Court of India· 08 September 2026

Is solatium and interest for a National Highways Act acquisition computed under the Land Acquisition Act, 1894 where compensation is determined before 1 January 2015?

Manav Bhanot v. National Highway Authority of India
2026 INSC 973 · SLP (C) No.27541 of 2024
Coram: Justice J. B. Pardiwala · Justice K. Vinod Chandran
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Answer

Solatium and interest for a National Highways Act acquisition is computed under the Land Acquisition Act, 1894 where compensation is determined before 1 January 2015.

Yes. Where the Competent Authority determines compensation for an acquisition under the National Highways Act, 1956 before 1 January 2015 — the date from which the Act of 2013 was extended to National Highways Act acquisitions — solatium, interest and interest on solatium are computed under the Land Acquisition Act, 1894; if the determination is made on or after that date, the more beneficial provisions of the 2013 Act apply instead. (¶23, 24)

Headnote

National Highways Act, 1956 — s.3J, s.105 — Land Acquisition Act, 1894 — Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 — Solatium and interest — Constitution of India, Art.14 — National Highways Act, 1956 — s.3J — Article 14 — Unconstitutional exclusion — Held: Excluding landowners under the National Highways Act from the solatium and interest available under general land acquisition law amounts to a violation of Article 14; Section 3J of the NH Act was struck down as unconstitutional on this ground. (¶6, 17) National Highways Act, 1956 — Land Acquisition Act, 1894 — Applicable rate of solatium — Held further: Solatium and interest for a National Highways Act acquisition are computed under the Land Acquisition Act, 1894 where compensation is determined before 1 January 2015, the date from which the 2013 Act was extended to such acquisitions; a later determination attracts the more beneficial 2013 Act. (¶23, 24) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 — s.24(1)(a) — Award pre-dating the Act — Held further: Compensation for a land acquisition with no award as of 1 January 2014 must be determined under the Act of 2013, even where the proceedings commenced earlier. Appeal allowed to the extent of directing solatium and interest under the Act of 1894. (¶21, 22, 27)

Headnote

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In the Court's own words
Paragraph 23Insofar as the NH Act is concerned, as we saw, a hiatus of one year was provided for its application. Section 105(1) provided that the enactments included in the IVth Schedule, will not be entitled to the benefits of the Act for a year and sub-section (3) provided for such benefits to be made applicable by a notification after one year. The intention as we discern is to provide a period of one year from the date of effect of the Act of 2013 for the Competent Authority under the NH Act to determine the compensation, deemed to be the initial award, insofar as the acquisition proceedings taken prior to the Act of 2013. If a determination of compensation has not been made before 01.01.2015, then necessarily the Act of 2013 was to apply. But if a determination of compensation is made by the Competent Authority under the NH Act before 01.01.2015, even if it is after 01.01.2014 solatium interest and interest of solatium would be payable under the Act of 1894.
Paragraph 24In the present case admittedly, the Competent Authority determined the compensation under the NH Act, which is akin to the award under the Act of 1894, passed on 11.07.2014, prior to the Ordinance which made applicable the benefits of the Act of 2013 to the NH Act w.e.f. 01.01.2015. Hence, though, the solatium, interest and interest on solatium is applicable, the same shall be computed based on the provisions of the Act of 1894.
Acts & Sections
s.3J National Highways Act, 1956s.105 National Highways Act, 1956s.24(1)(a) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013Art.14 Constitution of India

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Also decided in this judgment
Does excluding landowners under the National Highways Act from the solatium and interest available under general land acquisition law amount to a violation of Article 14?Must compensation for a land acquisition with no award as of 1 January 2014 be determined under the Act of 2013, where proceedings commenced earlier?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections