Supreme Court: Pre-2015 highway land acquisitions use 1894 Act for solatium, interest

The case concerns a dispute over whether solatium, interest, and interest on solatium for land acquired under the National Highways Act, 1956, should be calculated under the Land Acquisition Act, 1894, or the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Who it concerns: Appellant: Manav Bhanot; Respondent: National Highway Authority of India; Bench: Justice K. Vinod Chandran.

What the court decided

• The Court held that for awards passed prior to 01.01.2015, solatium, interest, and interest on solatium must be computed under the Land Acquisition Act, 1894.
• The Court held that for awards passed on or after 01.01.2015, the benefits are to be computed under the Act of 2013.
• The Court clarified that while landowners acquired before 01.01.2015 are entitled to solatium and interest, the specific rates and computation method depend on the date of the award relative to 01.01.2015.

Also in the document

• The Court noted that the Act of 2013 was made applicable to acquisitions under the National Highways Act only with effect from 01.01.2015 via Ordinance 9 of 2014.
• The Court distinguished between the entitlement to receive solatium/interest (which applies to pre-2015 acquisitions) and the statutory basis for calculating those amounts (which depends on the award date).