High Court Partially Allows Writ Petitions for Additional Compensation Under Land Acquisition Act

High Court: Gujarat High Court
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Case Note & Summary

The judgment involved a series of writ petitions filed by the petitioners seeking additional compensation for land acquired under the National Highways Act, 1956. The petitioners contended that they were entitled to statutory benefits under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, specifically an additional compensation of 12% on the market value of the land. They argued that the competent authority had applied a multiplication factor of 2 while determining the market value but failed to award the additional compensation on this total amount. The petitioners also sought interest under Section 80 of the Act on the unpaid compensation amount. The court noted that the petitioners had approached the court for the first time in December 2025, despite the awards being rendered in 2021. The court referred to previous judgments that upheld the entitlement to additional compensation under Section 30(3) and clarified that the additional compensation is designed to offset inflation and the rise in land prices during acquisition proceedings. The court concluded that the petitioners were entitled to the additional compensation calculated on the total market value, including the multiplication factor, from the date of the notification until the date of the original award. Furthermore, the court granted interest on the unpaid compensation at specified rates. However, the court denied the petitioners' claims for benefits under Schedule-II and Schedule-III of the Act due to their failure to raise these grievances earlier and the significant delay in seeking such benefits. The petitions were partly allowed, with directions for the competent authority to compute the additional compensation accordingly.

Headnote

A) Land Acquisition - Additional Compensation - Entitlement to Additional Compensation - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 30(3) - Petitioners entitled to additional compensation at the rate of 12% on the market value determined under Section 26, including multiplication Factor-2, from the date of notification under Section 3A of the National Highways Act, 1956 till the date of the original award. Held that the additional compensation is to be computed on the total market value including the multiplication factor (Paras 115).

B) Land Acquisition - Interest on Unpaid Compensation - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 80 - Petitioners entitled to interest on the unpaid amount of additional compensation at rates of 9% and 15% from the date of taking possession until payment is made. The court clarified that the interest is applicable due to non-payment of full compensation as per the Act (Paras 116).

C) Land Acquisition - Rehabilitation and Resettlement Benefits - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Petitioners' prayer for benefits under Schedule-II and Schedule-III denied due to lack of prior grievances raised and delay in seeking benefits. The court held that the delay and laches on the part of the petitioners precluded them from claiming these benefits (Paras 18-19).

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Issue of Consideration

Whether the petitioners are entitled to additional compensation under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and interest under Section 80.

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Final Decision

The court held that the petitioners are entitled to additional compensation at the rate of 12% on the market value determined under Section 26, including multiplication Factor-2, from the date of notification under Section 3A of the National Highways Act, 1956 until the date of the original award. The court also granted interest on the unpaid compensation at rates of 9% and 15% as per Section 80. However, the court denied the petitioners' claims for benefits under Schedule-II and Schedule-III of the Act due to delay and lack of prior grievances.

Law Points

  • Statutory benefits
  • additional compensation
  • market value determination
  • interest on unpaid compensation
  • rehabilitation and resettlement benefits
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Case Details

2026 LawText (GUJ) (02) 139

C/SCA/2324/2026

2026-02-26

Sunita Agarwal, D.N. Ray

A.J. Yagnik, Tushar L. Chauhan, Maithili Mehta, Ankit Shah, Maulik G. Nanavati

Lallubhai Somabhai Patel & Ors.

Competent Authority and Special Land Acquisition Officer & Ors.

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Nature of Litigation

Writ petitions seeking additional compensation and interest under land acquisition laws.

Remedy Sought

Petitioners sought additional compensation under Section 30(3) and interest under Section 80.

Filing Reason

Petitioners claimed denial of statutory benefits and interest on unpaid compensation.

Previous Decisions

Previous awards rendered in 2021 did not include additional compensation as per Section 30(3).

Issues

Entitlement to additional compensation under Section 30(3) Entitlement to interest under Section 80

Submissions/Arguments

Petitioners argued for additional compensation based on market value including multiplication factor. Respondents contended that the statutory benefits were already included in the awards.

Ratio Decidendi

The court interpreted the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, affirming that additional compensation under Section 30(3) must be computed on the total market value, including any multiplication factors applied, and that interest on unpaid compensation is warranted under Section 80.

Judgment Excerpts

the petitioners herein are entitled to the additional compensation (@ 12% per annum) to be computed on the market value by application of multiplication Factor 2 as per Section 26 of the Act, 2013 the same would be payable to the land owners on the additional amount to be determined by the competent authority there is no whisper in the writ petitions about any steps taken by the petitioners or any grievances raised

Procedural History

The petitioners filed a series of writ petitions in December 2025, challenging the awards rendered in 2021 and seeking additional compensation and interest under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Acts & Sections

  • Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 30(3), Section 80, Section 26
  • National Highways Act, 1956: Section 3A
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