Highway Land Acquisition: Supreme Court Says the Award Date Decides Whether 1894 or 2013 Act Solatium Applies

Case at a Glance

The Supreme Court has held that for land acquired under the National Highways Act, 1956, whether solatium and interest are computed under the Land Acquisition Act, 1894 or the 2013 Act depends on whether the Competent Authority’s award was made before or after 1 January 2015. Since the award in this case was made on 11 July 2014, the landowner gets solatium, interest and interest on solatium under the 1894 Act.

Land of the appellant was acquired for a national highway: the Section 3A notification was published in June 2011 and the Section 3D declaration in January 2012. The Competent Authority determined compensation on 11 July 2014, and the appellant received a part payment in October 2014 while disputing the amount. An arbitral determination followed, which was challenged under Sections 34 and 37 of the Arbitration Act.

Section 3J of the NH Act had excluded the 1894 Act, but was struck down in Tarsem Singh, (2019) 09 SC CK 0062 as violating Article 14, making solatium and interest payable. The 2013 Act’s compensation provisions were applied to NH Act acquisitions by an Ordinance from 1 January 2015. The appellant claimed full 2013 Act benefits; NHAI conceded solatium and interest but said the 1894 Act governed.

The Key Question Before the Court

When a national highway acquisition straddles the 2013 Act’s extension to the NH Act, which statute governs solatium and interest?

Finding the ‘Award’ Under the NH Act

The Court held that Tarsem Singh-II, (2025) 02 SC CK 0767 had not decided the timing question and Tarsem Singh-III, (2026) 03 SC CK 1460 dealt only with concluded proceedings, so the issue was res integra. It explained that the 2013 Act applies to NH Act landowners only on and after the Ordinance date, and that “the entitlement would be determined as to whether the ‘award’ was passed before or after 01.01.2015”.

Comparing the NH Act with the 1894 Act, the Court identified the Competent Authority’s determination under Section 3G(1) as the ‘award’, and likened the arbitrator’s determination under Section 3G(5) to a reference determination. Drawing on the Constitution Bench in Indore Development Authority v. Manoharlal and the one-year deferral under Section 105 of the 2013 Act, it held that a determination before 1 January 2015 attracts the 1894 Act. It also rejected reliance on a Ministry notification referring to ‘land holdings’.

What the Court Actually Held

• The governing date is the Competent Authority’s award under Section 3G(1), not the later arbitral award.
• An award before 1 January 2015 attracts solatium and interest under the 1894 Act; an award after it, under the 2013 Act.
• Here the award of 11 July 2014 meant the 1894 Act applied.
• The appeal was allowed in part and the matter remanded to the Competent Authority for computation and disbursal.

Why This Judgment Matters

• It gives a clear test for a large number of pending highway compensation disputes.
• It clarifies that the arbitrator’s later award does not shift the cut-off.
• It confirms that landowners acquired before 2015 are not left without solatium and interest.

What Should Advocates Take Away From the Judgment?

For Landowners

• Check the date of the Section 3G(1) determination before claiming 2013 Act benefits.
• Even pre-2015 awards carry solatium, interest and interest on solatium under the 1894 Act.

For NHAI and Competent Authorities

• Compute solatium and interest under the statute matching the award date.

Key Takeaways

Frequently Asked Questions

Yes. Solatium, interest and interest on solatium are payable; the question was only which Act governs their computation.

No. The Court treated the Competent Authority’s determination as the award for this purpose.

The Competent Authority will compute the amounts under the 1894 Act and the Government will disburse them.

Conclusion

Read the full judgment on CourtKutchehry: View judgment →