Gujarat High CourtProperty and Real Estate LawAdministrative and Public Law

Additional market value @12% under Section 30(3) must be computed on the total value inclusive of multiplication factor.

BHAGATSINH DAULATSINH DODIYAv.COMPETENT AUTHORITY AND SPECIAL LAND ACQUISITION OFFICER

Additional market value @12% under Section 30(3) must be computed on the total value inclusive of multiplication factor.. BHAGATSINH DAULATSINH DODIYA vs COMPETENT AUTHORITY AND SPECIAL LAND ACQUISITION OFFICER. Gujarat High Court. LawLens
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In brief

The question

1. Whether the additional compensation of 12% per annum under Section 30(3) of the 2013 Act is to be calculated on the total market value (including the multiplication factor 2) or only on the base market value

The court held

The court partly allowed the petition. It held that the 12% additional compensation under Section 30(3) must be computed on the market value determined after applying the multiplication factor 2

It also directed

The court directed the competent authority to pass the modified award within six weeks

It granted statutory interest under Section 80 on the unpaid amount, but limited it to a period of three years from the date of the award due to the petitioner's delay in approaching the court. The prayers for benefits under the Second and Third Schedules were rejected

01Facts

The petitioner’s land was acquired under the National Highways Act, 1956. An award was passed on 23.02.2018 (amended 14.10.2021) determining compensation

p. 1

While the authority applied the "multiplication factor 2" to calculate the market value under Section 26(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the '2013 Act'), it calculated the 12% additional compensation under Section 30(3) only on the "base market value" (pre-multiplication)

p. 2

The petitioner approached the High Court seeking the 12% benefit on the full multiplied market value, along with interest under Section 80 and rehabilitation benefits under Sch. II and III of the 2013 Act

pp. 2-3

02Issues

i.1. Whether the additional compensation of 12% per annum under Section 30(3) of the 2013 Act is to be calculated on the total market value (including the multiplication factor 2) or only on the base market value

p. 4 / para. 7

ii.2. Whether the petitioner is entitled to interest under Section 80 of the 2013 Act on the unpaid amount of additional compensation

p. 11 / para. 15

iii.3. Whether the petitioner is entitled to rehabilitation and resettlement benefits under the Second and Third Schedules of the 2013 Act

p. 11 / para. 18

03Law Applied

Section 26 defines "market value," with sub-section (2) requiring the application of a multiplication factor for rural areas

pp. 6-7 / para. 96

Section 30(3) mandates an award of 12% per annum on "such market value"

p. 5 / para. 96

The court relied on the precedent in Union of India v. Tarsem Singh [(2019) 9 SCC 304] to affirm that statutory benefits of the 2013 Act apply to acquisitions under the National Highways Act

p. 3 / para. 5

The court further applied the principle of statutory interpretation from Central Bank of India v. Ravindra [(2002) 1 SCC 369] regarding the adjective "such"

p. 5 / para. 100

Provisions in the judgment · 9 · Linked ones open on LawLens

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 9 provisionsSection 3Section 11Section 26Section 28Section 30Section 80Section 1Section 2Section 4

04Reasoning

Relying on its previous decision in SCA No. 7561 of 2023, the court reasoned that the expression "market value" under Section 26 is the end product of all factors, including the multiplication factor

p. 9 / para. 105

The word "such" in Section 30(3) refers to the market value determined under Section 26 in its entirety; therefore, excluding the multiplication factor when calculating the 12% additional compensation would be an artificial distinction not supported by the statute

pp. 5-6 / para. 101

Regarding interest, the court held that since the 12% amount is part of the compensation package that should have been paid originally, interest under Section 80 (9% and 15%) is applicable on the unpaid differential

p. 10 / para. 116

the court denied claims for Schedule II and III benefits, citing "delay and laches" and the principle of "estoppel and acquiescence" as the petitioner failed to raise these claims during the 2015-2016 acquisition process

pp. 11-12 / para. 19

05Holding

The court partly allowed the petition. It held that the 12% additional compensation under Section 30(3) must be computed on the market value determined after applying the multiplication factor 2

p. 12 / para. 8(i)

The court directed the competent authority to pass the modified award within six weeks

p. 13 / para. 17

It granted statutory interest under Section 80 on the unpaid amount, but limited it to a period of three years from the date of the award due to the petitioner's delay in approaching the court. The prayers for benefits under the Second and Third Schedules were rejected

p. 13 / para. 8(ii) and 8(iii)
Gujarat High Court

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BHAGATSINH DAULATSINH DODIYAvsCOMPETENT AUTHORITY AND SPECIAL LAND ACQUISITION OFFICER

Gujarat High Court · April 23, 2026

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