Gujarat High Court Allows Additional Compensation Under Section 30(3) of the 2013 Act for Land Acquired Under National Highways Act. Court Holds That Additional Compensation at 12% Is Payable on Market Value Including Multiplication Factor, and Directs Payment of Interest and Rehabilitation Benefits.

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

The petitioners, whose land was acquired under the National Highways Act, 1956, filed a writ petition seeking additional compensation under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act). They contended that although the award applied multiplication factor-2 to determine market value under Section 26 of the 2013 Act, the additional compensation at 12% per annum on the total market value (including the multiplication factor) was not awarded. They also sought interest under Section 80 of the 2013 Act on the unpaid amount and benefits under Schedule II (rehabilitation and resettlement) and Schedule III (infrastructural amenities) of the 2013 Act. The court, after hearing the parties, allowed the petition. It held that additional compensation under Section 30(3) is payable on the total market value including the multiplication factor, as the provision intends to compensate for the delay between notification and award. The court directed the respondents to calculate and pay the additional compensation accordingly. It also directed payment of interest under Section 80 on the unpaid amount from the date of award till actual payment. Regarding rehabilitation and resettlement benefits, the court observed that the guidelines issued by the Ministry of Road Transport and Highways (Annexure-A) extend Schedule II and III benefits to acquisitions under the National Highways Act, and directed the respondents to consider granting these benefits to the petitioners. The petition was disposed of with these directions.

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 amount of market value including the multiplication factor, as per the scheme of the Act. (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 prayed for interest on the unpaid amount of additional compensation. The court directed that interest under Section 80 be paid on the unpaid amount from the date of award till actual payment. (Para 4)

C) Land Acquisition - Rehabilitation and Resettlement - Schedule II and 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 held that these benefits are applicable to acquisitions under the National Highways Act, 1956, and directed the respondents to consider granting them. (Para 4)

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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 on the market value including multiplication factor, and whether they are entitled to interest under Section 80 of the said Act, and benefits under Schedule II and III of the said Act for land acquired under the National Highways Act, 1956.

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Final Decision

The court allowed the petition and directed the respondents to calculate and pay additional compensation under Section 30(3) of the 2013 Act on the total market value including multiplication factor, pay interest under Section 80 on the unpaid amount from the date of award till actual payment, and consider granting benefits under Schedule II and III of the 2013 Act as per the guidelines.

Law Points

  • Additional compensation under Section 30(3) of the 2013 Act is payable on the total market value including multiplication factor
  • Interest under Section 80 of the 2013 Act is payable on unpaid amounts
  • Benefits under Schedule II and III of the 2013 Act are applicable to acquisitions under the National Highways Act
  • 1956
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Case Details

2026 LawText (GUJ) (03) 110

R/Special Civil Application No. 2770 of 2026

2026-03-02

Sunita Agarwal, D.N.Ray

A.J. Yagnik, Tushar L. Chauhan, Hetal Patel, Pradip D. Bhate, Maulik Nanavati

Hirabhai @ Hiralal Chotubhai Patel & Ors.

Competent Authority and Special Land Acquisition Officer & Ors.

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Nature of Litigation

Writ petition seeking additional compensation and other benefits under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 for land acquired under the National Highways Act, 1956.

Remedy Sought

Petitioners sought writ of mandamus directing respondents to grant additional compensation under Section 30(3) of the 2013 Act on market value including multiplication factor, interest under Section 80, and benefits under Schedule II and III of the 2013 Act.

Filing Reason

The award determined market value with multiplication factor-2 but did not award additional compensation under Section 30(3) on the total amount, nor interest or rehabilitation benefits.

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 III of the 2013 Act are applicable to acquisitions under the National Highways Act, 1956?

Submissions/Arguments

Petitioners argued that additional compensation under Section 30(3) should be calculated on the total market value including multiplication factor, as per the scheme of the Act. Petitioners also argued that interest under Section 80 and rehabilitation benefits under Schedule II and III are applicable.

Ratio Decidendi

The benefit of additional compensation under Section 30(3) of the 2013 Act is payable on the total amount of market value including the multiplication factor, as the provision aims to compensate for the delay between notification and award. Interest under Section 80 is payable on unpaid amounts. Rehabilitation and resettlement benefits under Schedule II and III are applicable to acquisitions under the National Highways Act, 1956, as per government guidelines.

Judgment Excerpts

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 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 before the High Court of Gujarat seeking additional compensation and other benefits under the 2013 Act. The court heard the parties and disposed of the petition with directions.

Acts & Sections

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