Overview
In this case, the Supreme Court examined the question as to which law should govern the calculation of solatium, interest and interest on solatium for the land acquired under the National Highways Act 1956.
The dispute arose from whether these benefits 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.
The Court held that the date of the compensation determination by the Competent Authority is important. Wherever the determination was made before 1 January 2015, there the benefits have to be calculated under the Act of 1894.
Facts of the Case
The land of Manav Bhanot, the appellant herein, was acquired under the National Highways Act, 1956. The process of acquisition began after a notification was published under Section 3A on 7 June 2011. Following the same, the declaration under Section 3D was published on 20 January 2012.
The Competent Authority, NH7 and Sub-Divisional Officer, Jabalpur, decided the compensation on 11 July 2014. The total compensation was determined to be Rs. 3,47,38,287 out of which the appellant received Rs. 49,17,000 on 13 October 2014.
The appellant being dissatisfied with the same moved to arbitration. On 13 January 2016, the Arbitrator passed an award against the interests of the appellant.
Aggrieved by the same, the appellant approached the Supreme Court.
Legal Issues
- Whether solatium, interest and interest on solatium for acquisitions under the National Highways Act should be calculated under the 1894 Act or the 2013 Act.
- Whether the date of the Competent Authority’s determination of the compensation decides which Act applies.
- Whether the arbitral award could make the 2013 Act applicable to the calculation of these benefits.
Decision
The Supreme Court partly allowed the appeal and held that the appellant was entitled to solatium, interest and interest on solatium. However, these benefits had to be calculated under the 1894 Act.
The Court held that although Section 3J of the National Highways Act had been declared unconstitutional in the case of Union of India v. Tarsem Singh, this did not mean that the Act of 2013 would automatically apply to every acquisition since 1997.
For acquisition under the National Highways Act, the 2013 Act became applicable from 1 January 2015.
It was held that the relevant award under the National Highways Act is the determination which is made by the Competent Authority under Section 3G(1). Since the compensation in the present case was determined on 11 July 2014, the benefits had to be calculated under the 1894 Act. There was no change in position due to the arbitral award.
Therefore, the matter was remanded back by the Court to the Competent Authority for computation and disbursal of solatium, interest and interest on solatium under the 1894 Act and the pending applications were disposed of.
