1. Dispute over non-inclusion of Railways Act, 1989 benefits in award for Special Railway Project land acquisition. (Para 1 , 2 , 3 )
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2025 Supreme(Online)(Guj) 11794
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Sunita Agarwal, CJ, D.N. Ray, J
Patel Alpesh Thakorbhai – Appellant
Versus
Prant Officer, Dabhoi – Respondent
R/SPECIAL CIVIL APPLICATION NO. 14560 of 2025
Advocates:
For the Appellants/Petitioners: Nanavati & Co.
For the Respondents: Pradip D Bhate
For the Appellants/Petitioners: Nanavati & Co.
For the Respondents: Pradip D Bhate
The court is examining whether the 12% additional compensation under the 2013 Act must be calculated on the market value including the multiplication factor and whether statutory solarium under the Railways Act, 1989, was erroneously omitted from the award.
Headnote:(A) Land Acquisition - Railways Act, 1989 - Solarium - Question as to whether failure to award Additional Compensation/Solarium of 60% on market value under Section 20F(9) for a notified Special Railway Project is sustainable. (Para 4)
(B) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Calculation of Additional Compensation - Interpretation of "market value" under Section 3(u) - Whether the 12% additional compensation under Section 30(3) should be calculated based on the basic market value or the total market value after applying the multiplication factor under Section 26(2). (Para 6)
Issues: Whether the calculation of additional compensation and the grant of solarium under the Railways Act, 1989, and the 2013 Act are correct in the given acquisition award.
Legal Category Hierarchy
Table of Contents
2. Petitioner argues 60% solarium under Section 20F(9) and 12% additional compensation on factor-applied market value were wrongly denied. (Para 3 , 4 , 5 , 6 )
3. Court noted matter requires consideration, specifically on computation of 12% additional compensation on total market value including multiplier. (Para 6 , 7 )
4. No final ratio decided; court only issued notice and directed pleadings, finding the matter requires consideration. (Para 7 )
5. Notice issued to all respondents; replies due in four weeks; matter adjourned to 27.11.2025. (Para 7 )
6. Whether 12% additional compensation under Section 30(3) of the Act, 2013 must be computed on the market value after applying the multiplication factor under Section 26(2)?
The court noted the petitioner's submission that it must be computed on the total market value after applying the Factor 2 multiplier. (Para 5 , 6 )
7. Whether benefits under Section 20F(9) of the Railways Act, 1989 regarding 60% solarium apply to acquisitions under the Act, 2013?
The court noted the petitioner's submission that the 60% solarium was not awarded and required consideration. (Para 4 )
ORAL ORDER
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL)
1. Heard Ms.Manvi Damle, the learned advocate for Nanavati and Co. appearing for the petitioner.
2. The petitioner herein raises the disputes with regard to non inclusion of the benefits of the Railways Act, 1989 in the award declared on 31.07.2025 in an acquisition for a Special Railway Project i.e. “Gauge Conversion of Dabhoi Samalaya (46.45 Km.) including Samalaya Railway fly over bridge (8.40 Km) and Lotana bye pass line (7.55 Km.)”
3. The attention of the Court is invited to the Notification dated 28.02.2023 published under Section 2(37A) of the Railways (Amendment) Act, 2008 to submit that the project in question has been notified by the Central Government as a Special Railway Project for acquisition of the land in the State of Gujarat, for providing necessary infrastructure for a public purpose. It is submitted that in furtherance thereto, the acquisition notifications dated 28.11.2024 and 20.03.2025 were published under Section 20A(1) and 20E(1) of the Railways Act, 1989; respectively. The award has been declared on 31.07.2025 by applying the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short “the Act, 2013”).
4. However, the benefits as admissible under Section 20F(9) with regard to Additional Compensation/Solarium of 60% on the market value in consideration of the compulsory nature of acquisition, has not been awarded. It is further submitted by learned Counsel for the petitioner that there is no mention in the award about any rehabilitation or resettlement award prepared in accordance with the National Rehabilitation and Resettlement Policy, 2007, in the line of the provisions of Section 20-O of the Act, 1989.
5. Further submission is that the additional compensation of 12% is paid on the market value for the period commencing from the date of the publication of the preliminary notification till the date of the award or the date of taking possession of the land in question. The land in question being in rural area, multiplication Factor 2 as per Section 26(2) of the Act, 2013 has been applied.
6. However, the determination of the amount of 12% additional compensation on the market value within the scheme of Sub-section (3) of Section 30 of the Act, 2013 is on the basic market value, as determined under Sub-section (1) of section 26 of the Act, 2013. The submissions is that the 12% additional compensation is required to be determined on the total amount of the market value computed by the Special Land Acquisition Officer, after application of the multiplication of Factor 2 within the scheme of Section 26 read with Section 30(2) of the Act, 2013. It is submitted that in view of the definition of “market value” under Section 3(u), the “market value” as and when occurred in the entire scheme of the provisions of the Act, 2013 has to mean and understood as the “market value” determined in accordance with Section 26 which includes both Sub-section (1) and (2) of the said section.
7. The matter requires consideration. Notice of the present petition on behalf of respondent Nos. 2 & 3 has been received by Ms. Archana Amin, learned advocate. The Notice on behalf of the respondent No.1 has been received in the office of the Government Pleader. All the respondents shall file their replies within a period of four weeks, two weeks thereafter is granted for rejoinder.
Put up this matter on 27.11.2025.
