The Supreme Court addressed whether the computation of solatium, interest, and interest on solatium for land acquisitions under the National Highways Act, 1956 should be governed by the Land Acquisition Act, 1894 or the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Partially allowing the appeal, the bench ruled that because the competent authority’s award under Section 3G of the NH Act was passed on July 11, 2014—prior to the statutory extension making the 2013 Act applicable to national highway acquisitions on January 1, 2015—the statutory benefits must be computed using the provisions of the 1894 Act. The Court clarified that while landowners whose lands are acquired under the NH Act are universally entitled to solatium and interest, the specific calculation regime depends on whether the initial award was finalized before or after the January 1, 2015 cut-off date.
- Core Dispute: The litigation centered on whether compensation enhancements (solatium and interest) should be calculated under the older 1894 Act or the more beneficial 2013 Act for acquisitions under the National Highways Act, 1956.
- Statutory Interplay & Amendments: Following the unconstitutionality ruling regarding Section 3J of the NH Act in Tarsem Singh-I, the 2013 Act’s compensation framework was extended to the NH Act via ordinances and notifications with effect from January 1, 2015.
- Award Timeline Determinant: The Court established that if an award by the competent authority under Section 3G of the NH Act was made before January 1, 2015, the computation of solatium and interest falls under the 1894 Act; if made after, it falls under the 2013 Act.
- Inapplicability of Ministry Notification Exception: The appellant’s reliance on a Ministry of Road, Transport and Highways circular regarding unpaid majority holdings failed, as records demonstrated that compensation for the majority of land holdings (1.700 out of 3.080 hectares) had already been disbursed within 2014.
- Final Relief: The appeal was partly allowed, remanding the matter back to the competent authority strictly for the computation and disbursal of solatium and interest in accordance with the 1894 Act framework.
2026 INSC 973
Manav Bhanot v. National Highway Authority of India (D.O.J. 08.09.2026)




