Gujarat High Court Allows Additional Compensation Under Section 30(3) of the 2013 Act for Land Acquired Under National Highways Act, 1956. The court held that additional compensation at 12% is payable on the total market value including multiplication factor, and interest under Section 80 is payable on unpaid amounts.

High Court: Gujarat High Court In Favour of Prosecution
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Case Note & Summary

The petitioners, Thakorbhai Bhanabhai Aahir and others, filed a writ petition under Article 226 of the Constitution before the Gujarat High Court seeking statutory benefits under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act) for land acquired under the National Highways Act, 1956. The land was acquired for a national highway project, and an award was passed determining market value with multiplication factor-2 applied. However, the petitioners were not granted additional compensation under Section 30(3) of the 2013 Act, which provides for 12% additional compensation on the market value from the date of preliminary notification under Section 3A of the National Highways Act until the date of award or possession, whichever is earlier. The petitioners also claimed interest under Section 80 of the 2013 Act on the unpaid amount and sought benefits under Schedule-II (rehabilitation and resettlement) and Schedule-III (infrastructural amenities) as per government guidelines. The court, after hearing the parties, held that the petitioners are entitled to additional compensation under Section 30(3) on the total market value including multiplication factor, and interest under Section 80 on the unpaid amount. The court further directed the respondent authorities to consider and grant the benefits under Schedule-II and Schedule-III in accordance with law. The petition was allowed with directions to the competent authority to compute and pay the amounts within a specified period.

Headnote

A) Land Acquisition - Additional Compensation - Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The petitioners sought additional compensation at 12% per annum on the market value including multiplication factor from the date of preliminary notification under Section 3A of the National Highways Act, 1956 till the date of award or possession. The court held that the benefit of additional compensation under Section 30(3) is payable on the total market value including multiplication factor. (Paras 2-3)

B) Land Acquisition - Interest - Section 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The petitioners claimed interest on the unpaid amount of additional compensation. The court held that interest under Section 80 is payable on the unpaid amount from the date of award till payment. (Para 3)

C) Land Acquisition - Rehabilitation and Resettlement - Schedule-II and Schedule-III of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - The petitioners sought benefits under Schedule-II (rehabilitation and resettlement) and Schedule-III (infrastructural amenities) as per government guidelines. The court directed the respondents to consider and grant these benefits in accordance with law. (Para 4)

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Issue of Consideration

Whether the petitioners are entitled to additional compensation under Section 30(3) of the 2013 Act on the market value including multiplication factor, interest under Section 80, and benefits under Schedule-II and Schedule-III of the 2013 Act for land acquired under the National Highways Act, 1956.

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Final Decision

The court allowed the writ petition and directed the respondent authorities to grant the benefit of additional compensation under Section 30(3) on the total market value including multiplication factor, interest under Section 80 on the unpaid amount, and to consider and grant benefits under Schedule-II and Schedule-III in accordance with law.

Law Points

  • Additional compensation under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition
  • Rehabilitation and Resettlement Act
  • 2013 is payable on the total market value including multiplication factor
  • Interest under Section 80 of the 2013 Act is payable on unpaid amounts
  • Schedule-II and Schedule-III benefits under the 2013 Act are applicable to acquisitions under the National Highways Act
  • 1956
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Case Details

2026 LawText (GUJ) (03) 109

R/Special Civil Application No. 2762 of 2026

2026-03-02

Sunita Agarwal, D.N.Ray

A.J. Yagnik, Tushar L. Chauhan, Sanjay Udhwani, Pradip D. Bhate, Maulik Nanavati

Thakorbhai Bhanabhai Aahir & Ors.

Competent Authority and Special Land Acquisition Officer & Ors.

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Nature of Litigation

Writ petition under Article 226 seeking statutory benefits under the 2013 Act for land acquired under the National Highways Act, 1956.

Remedy Sought

Petitioners sought additional compensation under Section 30(3), interest under Section 80, and benefits under Schedule-II and Schedule-III of the 2013 Act.

Filing Reason

The petitioners were not granted additional compensation on the total market value including multiplication factor, and other statutory benefits.

Previous Decisions

An award was passed determining market value with multiplication factor-2, but additional compensation under Section 30(3) was not awarded.

Issues

Whether additional compensation under Section 30(3) of the 2013 Act is payable on the market value including multiplication factor? Whether interest under Section 80 of the 2013 Act is payable on unpaid amounts? Whether benefits under Schedule-II and Schedule-III of the 2013 Act are applicable to acquisitions under the National Highways Act, 1956?

Submissions/Arguments

Petitioners argued that they are entitled to additional compensation under Section 30(3) on the total market value including multiplication factor, interest under Section 80, and Schedule-II and Schedule-III benefits. Respondents opposed the petition, but the court found merit in the petitioners' submissions.

Ratio Decidendi

The benefit of additional compensation under Section 30(3) of the 2013 Act is payable on the total market value including multiplication factor, and interest under Section 80 is payable on unpaid amounts. The provisions of the 2013 Act apply to acquisitions under the National Highways Act, 1956.

Judgment Excerpts

In the present writ petition, the petitioners are seeking for the benefits of statutory benefits of additional compensation @ 12% on the market value of the land provided under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013... The petitioners would submit that though while making determination of the market value in accordance with Section 26 of the 2013 Act, multiplication Factor-2 was applied with respect to the land-in-question under the award, however, the benefits of the additional compensation as payable under Section 30(3) of the Act, 2013 on the total amount of the market value (including multiplication Factor-2) has not been awarded to the petitioners.

Procedural History

The petitioners filed a writ petition under Article 226 before the High Court of Gujarat at Ahmedabad on 02/03/2026, seeking statutory benefits under the 2013 Act. The court heard the parties and delivered judgment on the same day.

Acts & Sections

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