2 months ago
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Stating that the law warrant of conscionable compensation cannot beryllium diluted, the Supreme Court connected Wednesday (March 25, 2026) said solatium and involvement successful a onshore acquisition substance cannot beryllium contingent connected the magnitude of the fiscal burden.
A Bench of Chief Justice Surya Kant and Justice Ujjal Bhuyan made the reflection portion disposing of the National Highway Authority of India's (NHAI) plea seeking reappraisal of the apex court’s February 4, 2025, verdict that the 2019 determination of the apical tribunal allowing assistance of compensation and involvement to farmers whose onshore was acquired nether the NHAI Act would use retrospectively.
The Bench said involvement payable to the landowners volition beryllium according to the onshore Acquisition Act, which is 9%, and not the NHAI Act, which has a 5% cap.
The tribunal said NHAI sought a reappraisal of the determination connected the grounds that fiscal liability from solatium and involvement to those whose onshore was acquired by NHAI was not ₹100 crore arsenic was claimed, but astir ₹29,000 crore.
The apical tribunal successful its bid contiguous said arsenic acold arsenic this contention is concerned, the tribunal made it wide astatine the outset that adjacent if the corrected fiscal estimation is taken connected grounds it does not transportation it to revisit the merits of the earlier order.
"The assistance of solatium and involvement cannot beryllium made contingent upon the magnitude of the fiscal burden. The law warrant of conscionable compensation cannot beryllium diluted connected that basis. Mere projection of fiscal liability does not represent a valid crushed for review," the CJI said portion pronouncing the order.
The Bench, however, said its earlier decisions connected the contented necessitate a constricted clarification to guarantee a accordant and equitable knowing of the scope and effect of the judgment.
The apical tribunal said it is undisputed that landowners whose lands were acquired nether the National Highways Act are entitled to solatium and involvement arsenic portion of conscionable compensation.
It said that each claims of landowners bash not basal connected the aforesaid footing. In respective cases, landowners person pursued antithetic remedies and proceedings, including arbitration and tribunal proceedings, for enhancing compensation oregon assistance of benefits.
"We are of the presumption that portion landowners whitethorn beryllium entitled to solatium and involvement arsenic a substance of law, they cannot beryllium permitted to reopen concluded claims which person attained finality. The equilibrium betwixt the rights of landowners and the request for certainty successful litigation indispensable beryllium maintained. Endless reopening of settled claims cannot beryllium permitted," it said.
On February 23, the apical tribunal orally observed that pre-March 2018 onshore acquisition cases cannot beryllium reopened for granting compensation with involvement to the farmers whose onshore had been acquired nether the NHAI Act.
In 2019, the apex tribunal held that the determination to assistance compensation with involvement to farmers whose onshore was acquired nether the NHAI Act would use retrospectively. The NHAI contended that the 2019 judgement imposed a immense fiscal load (approximately ₹32,000 crore) and should truthful use prospectively.
The apical tribunal antecedently rejected this contention, noting that denying specified benefits violated Article 14 (right to equality) of the Constitution.
"The cut-off day appears to beryllium of 2008, provided claims were live then. Pre-2018 matters cannot beryllium reopened. Those matters which were pending successful 2008 continue. If idiosyncratic successful the aboriginal 2020s filed an exertion saying they are entitled to parity connected the ground of 2008, we tin accidental yes arsenic the solatium but not interest, similar successful onshore acquisition matters," the apical tribunal had observed.
The tribunal said successful its 2019 determination that Section 3J of the NHAI Act, by excluding the applicability of the Land Acquisition Act of 1894 and consequently denying solatium and involvement for lands acquired nether the NHAI Act, was violative of Article 14 of the Constitution.
