Case Note & Summary
The petitioners, whose lands were acquired under the National Highways Act, 1956, filed writ petitions seeking the benefit of additional compensation at 12% per annum under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (the 2013 Act). The market value of the land had been determined under Section 26 of the 2013 Act with the application of multiplier Factor-2, but the additional compensation under Section 30(3) was not granted. The petitioners contended that the additional compensation should be paid on the market value from the date of the preliminary notification under Section 3A of the National Highways Act, 1956 until the date of the award or taking possession, whichever is earlier. The respondents argued that since multiplier Factor-2 had already been applied, no further additional compensation was payable. The court, after hearing the parties, held that Section 30(3) of the 2013 Act provides for solatium on the market value determined under Section 26, and the period for such additional compensation commences from the date of the preliminary notification under the National Highways Act, 1956, as the acquisition is deemed to be under the 2013 Act. The court further held that the application of multiplier Factor-2 does not bar the grant of additional compensation under Section 30(3), as the two benefits are distinct and cumulative. Accordingly, the court allowed the petitions and directed the respondents to pay additional compensation at 12% per annum on the market value from the date of the preliminary notification under Section 3A of the National Highways Act, 1956 till the date of the award or possession, whichever is earlier, within a period of three months.
Headnote
A) Land Acquisition - Additional Compensation under Section 30(3) - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Section 30(3) - Petitioners sought additional compensation at 12% on market value from date of preliminary notification under Section 3A of National Highways Act, 1956 till award/possession - Court held that Section 30(3) provides for solatium on market value determined under Section 26, and the period runs from the date of preliminary notification under the National Highways Act, 1956, as the acquisition is deemed under the 2013 Act - Held that the benefit is admissible even if multiplier Factor-2 was applied (Paras 2-5) B) Land Acquisition - Multiplier Factor-2 and Additional Compensation - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Sections 26 and 30(3) - The application of multiplier Factor-2 under Section 26 does not preclude the grant of additional compensation under Section 30(3) - The two benefits are distinct and cumulative - Held that the petitioners are entitled to additional compensation at 12% per annum on the market value from the date of preliminary notification under Section 3A of the National Highways Act, 1956 till the date of award or possession, whichever is earlier (Paras 3-5)
Issue of Consideration
Whether the petitioners are entitled to additional compensation at 12% per annum under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 on the market value of land acquired under the National Highways Act, 1956, for the period from the date of preliminary notification under Section 3A of the National Highways Act, 1956 till the date of award or possession, even when multiplier Factor-2 has already been applied in the award
Final Decision
The court allowed the petitions and directed the respondents to pay additional compensation at 12% per annum under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 on the market value determined under Section 26 of the said Act, from the date of preliminary notification under Section 3A of the National Highways Act, 1956 till the date of award or taking possession, whichever is earlier, within a period of three months from the date of the judgment.
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 market value determined under Section 26 of the same Act
- even if multiplier Factor-2 has been applied
- and the period commences from the date of preliminary notification under Section 3A of the National Highways Act
- 1956 until the date of award or possession
- whichever is earlier
