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2025 Supreme(Guj) 1363

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD 
SUNITA AGARWAL, CJ., D.N.RAY, J.
Dilipbhai Kashiram Valvi & Ors. - Appellant
Versus
Union Of India & Ors. - Respondent
Special Civil Application No. 8415 Of 2016 With Civil Application (For Joining Party) No. 1 Of 2018 In Special Civil Application No. 8415 of 2016
Decided On : 07-07-2025

Advocates:
Advocate Appeared:
For the Appellant : Ms. Kruti M Shah
For the Respondent:Ms. Hetal Patel, AGP, Mr. Maulik Nanavati, Advocate For Ms. Manvi Damle, Advocate For Nanavati & Co.

The court ruled that denial of solatium and interest in land acquisitions under the National Highways Act violates constitutional rights, emphasizing the necessity of fair compensation in compulsory acquisitions.

Headnote:(A) National Highways Act, 1956 - Section 3(j) - Article 14 and 21 of the Constitution of India - Section declared unconstitutional for denying solatium and interest in land acquisition - Apex Court emphasizes that solatium is part of compensation for compulsory acquisition and is essential to protect rights of landowners. (Paras 11, 12, 25, 52)

(B) Legal principles associated with solatium and constitutional rights are reiterated, linking the need for fair compensation to the principles of natural justice and equality before law.

(C) The court examined the validity of amendments that altered compensation standards and held them unconstitutional.

(D) The court framed issues relating to the validity of the amendment and its compliance with constitutional protections. (E) The court found that the amendment lacked rational basis, inferring discrimination against landowners under the National Highways Act, 1956 compared to other acquisition contexts. (F)

Result: The appeal challenging the provisions was dismissed, declaring them unconstitutional.

Table of Content
1. pending application for joining party. (Para 1)
2. challenge to national highways act's section 3(j). (Para 2)
3. supreme court's analysis on compensation provisions. (Para 3)
4. conclusion on computation of solatium and interest. (Para 4 , 5 , 6)

ORDER :

SUNITA AGARWAL, CJ.,

ORDER IN CIVIL APPLICATION

1. This application is pending since the year 2018. No objection has been filed on behalf of the Respondent – NHAI.

2. Mr. Maulik Nanavati, learned advocate has put in appearance on behalf of Respondent-NHAI who could not raise any plausible objection to the prayer made in the application.

3. The application is accordingly, allowed. The applicant is permitted to be joined as the petitioner and is held entitled for the same relief as has been granted to the petitioner herein, in the following order.

ORDER IN SPECIAL CIVIL APPLICATION :-

1. Heard Ms. Kruti M. Shah, learned advocate for the petitioners, Mr.Maulik Nanavati and Ms.Manvi Damle, learned Counsels for the respondent-NHAI and Ms.Hetal Patel, learned Assistant Government Pleader appearing for the State-Respondents.

2. The relief prayed in the present petition are as under:

“(b) issue appropriate, writ, order or direction to declare Section 3(j) of the NATIONAL HIGHWAYS ACT , 1956 as unconstitutional and ultra-virus to Article 14 and 21 of the Constitution of India.

(c) issue appropriate, writ, order or direction for quashing and setting aside the land acquisition proceedings in pursuance of notification dated 17.03.2009 published in the Gazette of India, Extra Ordinary, Part-II under Section 3 Sub Section (ii) of NATIONAL HIGHWAYS ACT , 1956.

(d) issue appropriate, writ, order or direction for quashing and setting aside the awards daed 15.02.2011, 15.02.2012 and 26.12.2012 declared by the respondent No.2 on the ground of awarding lesser compensation then demanded by the petitioner.

3. With respect to the challenge to the validity of Section 3(j) of the NATIONAL HIGHWAYS ACT , 1956, suffice it to note that the issue has been adjudicated by the Apex Court in Union of India Vs. Tarsem Singh and others reported in (2019) 9 SCC 304. While holding Section 3(j) as ultra vires, the following observations have been made :-

“11. Before embarking on a discussion as to the constitutional validity of the Amendment Act, it is important to first understand what is meant by the expression “solatium”. In Sunder v. Union of India [Sunder v. Union of India, (2001) 7 SCC 211] , a Bench of five Judges of this Court laid down the nature of solatium as follows : (SCC p. 229, paras 21 and 22)

“21. It is apposite in this context to point out that during the enquiry contemplated under Section 11 of the Act the Collector has to consider the objections which any person interested has stated pursuant to the notice given to him. It may be possible that a person so interested would advance objections for highlighting his disinclination to part with the land acquired on account of a variety of grounds, such as sentimental or religious or psychological or traditional, etc. Section 24 emphasises that no amount on account of any disinclination of the person interested to part with the land shall be granted as compensation. That aspect is qualitatively different from the solatium which the legislature wanted to provide ‘in consideration of the compulsory nature of the acquisition’.

22. Compulsory nature of acquisition is to be distinguished from voluntary sale or transfer. In the latter, the landowner has the widest advantage in finding out a would-be buyer and in negotiating with him regarding the sale price. Even in such negotiations or haggling, normally no landowner would bargain for any amount in consideration of his disinclination to part with the land. The mere fact that he is negotiating for sale of the land would show that he is willing to part with the land. The owner is free to settle terms of transfer and choose the buyer as also to appoint the point of time when he would be receiving considerat

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