Gujarat High Court

Additional compensation under Section 30(3) is calculated on market value inclusive of multiplication factors under Section 26.

DIGVIJAYSINH JASHWANTSINH SOLANKI vs COMPETENT AUTHORITY AND SPECIAL LAND ACQUISITION OFFICER

Gujarat High CourtJUDGMENT: March 24, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners’ lands were acquired under the National Highways Act, 1956 (NHA).

Source reference: para. 6

Preliminary notifications were issued under Section 3A of the NHA, and awards were subsequently passed in 2021.

Source reference: para. 6

While the market value was determined by applying a multiplication Factor-2 for rural land under Section 26 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act), the petitioners were denied the statutory benefit of 12% additional compensation under Section 30(3) of the 2013 Act on that total value.

Source reference: para. 3, 7

The petitioners approached the High Court in March 2026, seeking the additional compensation, statutory interest under Section 80, and benefits related to rehabilitation and infrastructure under the Second and Third Schedules of the 2013 Act.

Source reference: para. 4, 6
02

Issues

1. Whether the petitioners are entitled to additional compensation @ 12% per annum under Section 30(3) of the 2013 Act calculated on the market value inclusive of multiplication Factor-2.

Source reference: para. 7

2. Whether the petitioners are entitled to statutory interest under Section 80 of the 2013 Act for the unpaid additional compensation.

Source reference: para. 3, 10

3. Whether the petitioners can claim benefits under the Second and Third Schedules of the 2013 Act after a delay of approximately four years from the date of the award.

Source reference: para. 18-19
03

Law Applied

The court primarily applied Section 30(3) of the 2013 Act, which mandates an additional amount @ 12% per annum on the market value from the date of notification to the award or possession.

Source reference: para. 2

It relied on the definition of "market value" under Section 3(u) and Section 26, which includes the multiplication factor for rural areas.

Source reference: para. 8, 101

The court followed the precedent in Union of India v. Tarsem Singh [(2019) 9 SCC 304], which extended 2013 Act benefits to acquisitions under the NHA.

Source reference: para. 5

additional compensation must be computed on the value including the multiplication factor.

Source reference: para. 7-10

Section 80 of the 2013 Act was applied regarding interest on unpaid compensation.

Source reference: para. 10
04

Reasoning

The Court observed that "market value" under the 2013 Act is the end product of all components under Section 26, including the multiplication factor.

Source reference: para. 105

Thus, the 12% additional compensation under Section 30(3) cannot be restricted to the "base" market value but must apply to the total value after multiplication.

Source reference: para. 108, 113

Since this amount was missing from the original awards, it constituted "unpaid compensation" attracting interest under Section 80.

Source reference: para. 116

However, regarding the interest, the Court noted the petitioners' four-year delay in filing the writ and limited the interest period to three years from the award date.

Source reference: para. 16

Regarding the Second and Third Schedules (rehabilitation and amenities), the Court held that the petitioners had participated in the acquisition without raising these grievances earlier.

Source reference: para. 18-19

Consequently, these claims were barred by the principles of delay, laches, estoppel, and acquiescence.

Source reference: para. 18-19
05

Holding

The High Court partly allowed the petitions.

It held that the petitioners are entitled to 12% additional compensation under Section 30(3) calculated on the market value inclusive of Factor-2.

Source reference: para. 14-15

It further directed the payment of statutory interest under Section 80 (@ 9% and 15%) on the unpaid additional compensation, but limited this interest to a period of three years from the date of the award due to delay.

Source reference: para. 16

The prayers for benefits under the Second and Third Schedules were rejected.

Source reference: para. 19

The Competent Authority was directed to pass revised awards within six weeks.

Source reference: para. 17
Gujarat High Court

Original Court PDF

DIGVIJAYSINH JASHWANTSINH SOLANKIvsCOMPETENT AUTHORITY AND SPECIAL LAND ACQUISITION OFFICER

Gujarat High Court · March 24, 2026

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