National Highway Land Acquisition: Supreme Court Clarifies Applicable Compensation Law
Manav Bhanot v. National Highway Authority of India, 2026 INSC 973
The Supreme Court in Manav Bhanot v. National Highway Authority of India, 2026 INSC 973, has clarified the applicable law for computing solatium, interest and interest on solatium in land acquisitions undertaken under the National Highways Act, 1956.
The dispute concerned whether these benefits were to be calculated under the Land Acquisition Act, 1894 or the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
The Court examined the effect of its earlier decisions in Tarsem Singh-I and Tarsem Singh-II, particularly the declaration that Section 3J of the National Highways Act, which excluded the benefits of the 1894 Act, was unconstitutional. The Court held that landowners whose properties were acquired under the National Highways Act are entitled to solatium and interest, including those whose acquisitions took place before 01 January 2015.
However, the applicable statutory regime depends upon the date on which compensation was determined by the Competent Authority. The Court held that the determination under Section 3G(1) of the National Highways Act is in the nature of an award for determining the applicable compensation provisions.
Where compensation was determined before 01 January 2015, solatium, interest and interest on solatium are to be computed under the Land Acquisition Act, 1894. Where the determination was made on or after 01 January 2015, the beneficial provisions of the 2013 Act would apply.
In the present case, compensation had been determined on 11 July 2014. Accordingly, the Supreme Court directed that solatium, interest and interest on solatium be computed under the 1894 Act and remanded the matter to the Competent Authority for computation and disbursal.
The judgment provides an important clarification for determining compensation benefits in National Highway acquisition proceedings and distinguishes entitlement to benefits from the statutory regime governing their computation.
