Landowners are entitled to solatium and interest on compensation for acquisitions under the National Highways Act.

The petitioner and petitioners in 55 connected writ petitions were landowners whose land had been acquired under the National Highways Act, 1956. They sought payment of statutory solatium under Section 23(2) of the Land Acquisition Act, 1894, together with interest on the solatium

The Court had earlier directed the petitioners to file affidavits confirming non-payment of solatium and directed the competent authority/NHAI to verify entitlement and process payment of the undisputed principal amount. The question of interest had initially been kept open because review proceedings were pending before the Supreme Court

At the hearing, NHAI stated that it did not dispute its liability to pay solatium and interest in accordance with Union of India v. Tarsem Singh, (2019) 9 SCC 304, and National Highways Authority of India v. Tarsem Singh, 2025 SCC OnLine SC 235. NHAI further stated that solatium had already been paid in some cases and would be paid in the remaining cases upon receipt of the Collector’s calculations

The Court applied Section 23(2) of the Land Acquisition Act, 1894, which provides for statutory solatium on the market value of acquired land.

It relied principally on Union of India v. Tarsem Singh, (2019) 9 SCC 304, holding that landowners whose property is acquired under the National Highways Act, 1956 are entitled to solatium under Section 23(2) of the 1894 Act

The Court also relied on National Highways Authority of India v. Tarsem Singh, 2025 SCC OnLine SC 235, in relation to the liability of the acquiring authority to pay solatium and applicable interest

The competent Land Acquisition Collector is responsible for calculating the amounts payable, while NHAI is required to release payment after receiving the calculation

The entitlement to solatium was no longer a disputed legal question in view of the Supreme Court’s decisions in Tarsem Singh. NHAI expressly accepted its liability for solatium and interest, thereby eliminating the need for adjudication of individual entitlement at the writ stage

Since the principal amounts and interest had to be determined case-wise on the basis of the acquisition records, the Court directed the Land Acquisition Collector to calculate the amounts payable in each case. The Court consequently adopted a time-bound administrative mechanism: the Collector was to complete the calculations within two months, after which NHAI was to release payment within four weeks

All the writ petitions were disposed of in view of NHAI’s statement. The concerned Land Acquisition Collector was directed to calculate solatium and interest within two months from the date of the order and intimate the amount to NHAI. NHAI was directed to release payment within four weeks of receiving the calculations. Petitioners dissatisfied with the calculation were left at liberty to pursue remedies available in law

Pending applications, if any, were also disposed of