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2026 Supreme(Guj) 975

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Sunita Agarwal, C.J., D.N.Ray, J.
Yakub Gulam Achchha & Ors. – Petitioner 
Versus
Competent Authority, National Highway Authority Of India And Deputy Collector, Bharuch (Expressway) & Ors. – Respondents
Special Civil Application No. 5328 of 2026
Decided On : 16-04-2026

Advocates Appeared:
For the Petitioner: Mr A J Yagnik, Mr Tushar L Chauhan
For the Respondent: Ms Hetal Patel, Agp, Mr Pradip D Bhate, Mr Maulik G Nanavati For Nanavati & Co.

The 12% additional compensation under the 2013 Act must be computed on the total market value of the acquired land, which includes the multiplication factor provided under Section 26(2). Consequently, landowners are entitled to statutory interest on such unpaid additional compensation for delayed payment.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Sections 26, 30(3), and 80 - National Highways Act, 1956 - Section 3A - Determination of market value - Additional compensation @ 12% - Whether additional compensation under Section 30(3) should be calculated on base market value or total market value including multiplication factor - Court observed that 'market value' under the 2013 Act encompasses components under Section 26(1) and (2) - Additional compensation @ 12% is designed to mitigate impact of inflation on land value and must be computed on total market value inclusive of multiplication factor (Paras 8, 9, 11, 14)

(B) Statutory Interpretation - Use of term 'such market value' - Presumption that legislature uses same expression in consistent sense throughout statute - Interpretation must avoid inconsistency or repugnancy - Expression 'market value' qualified by 'such' in Section 30(3) refers to definition in Section 26 including Section 26(2) application (Paras 101, 102)

(C) Interest under Section 80 - Liability for interest on additional compensation - Delay in payment of legitimate compensation attracts interest - Interest held applicable on unpaid additional compensation from date of original award (Paras 10, 15, 16)

Facts of the case:
The petitioners sought the benefit of 12% additional compensation under the 2013 Act regarding land acquisition for infrastructure projects. Although the awards applied a multiplication factor of 2 to determine the basic market value, the authorities failed to calculate the 12% additional compensation on the total amount including this multiplication factor, restricting it only to the base market value. Petitioners further prayed for statutory interest on unpaid portions and adherence to rehabilitation and resettlement schedules.

Findings of Court:
The Court held that the multiplication factor is a vital component of the defined market value for rural lands. Denying 12% additional compensation on the multiplication-adjusted amount undermines the legislative intent to offset inflation. The Court further affirmed entitlement to statutory interest on the accrued arrears of additional compensation due to non-payment of the total compensation package.

Issues: The main issues were whether 12% additional compensation under Section 30(3) of the 2013 Act applies to the total market value including the multiplication factor under Section 26(2), and whether statutory interest under Section 80 is payable on such unpaid additional compensation.

Ratio Decidendi: The court concluded that the multiplication factor is an integral part of the 'market value' of the land. Since the 12% additional compensation is a compensatory measure for price appreciation during acquisition, it must be calculated on the final market value, including the multiplication factor. Consequently, any failure to pay this amount as part of the initial award triggers liability for statutory interest.

Result: Petition partly allowed.

Table of Content
1. petitioner challenges exclusion of multiplication factor 2 from additional compensation calculation under section 30(3). (Para 1 , 2 , 3)
2. court applies established precedent holding that additional compensation (12%) must be applied to market value inclusive of multiplication factor 2. (Para 4 , 5 , 6 , 7)
3. mandatory award of 12% additional compensation on total market value and interest under section 80. (Para 8 , 9)

ORDER :

SUNITA AGARWAL, C.J.

1. The petitioners herein are aggrieved by non-award of benefit of Section 30 sub-section (3) of the the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for short, the Act’ 2013”), on the market value computed by application of the multiplication factor 2, which was granted vide award dated 12.05.2023.

2. The contention is that the award dated 12.05.2023 with respect to the lands in question though determined market value by application of multiplication market value under Section 26(2) of the Act’ 2013 and other statutory benefits, but while granting benefits of additional compensation @12% under Section 30(3) of the Act’ 2013, the market value computed under Section 26 (1) has only been taken into consideration, terming the same as the base market value.

3. The issue pertaining to the grant of benefit of additional compensation @ 12% on multiplication factor 2, i.e. the market value computed under Section 26(2) of the Act’ 2013 has been set at rest with the decision of this Court in Special Civil Application No.7561 of 2023 and other cognate matters decided on 23.12.2025.

4. Taking note of the said decision dated 23.12.2025, in a latter judgment and order dated 26.02.2026 in a bunch of writ petition leading being Special Civil Application No.2324 of 2026, the following order was passed:-

“Heard Mr. A.J.Yagnik, the learned advocate for the petitioners, Ms. Maithili Mehta, the learned AGP appearing for the State respondent No.1, Mr. Maulik G. Nanavati, the learned advocate for the respondent No.2 and Mr. Ankit Shah, the learned advocate for the respondent No.3, in all the petitions.

2. In the present set of writ petitions, the petitioners are seeking for the benefits of statutory benefits of additional compensation @ 12% on the market value of the land provided under Section 30(3) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (in short as ‘the 2013 Act’) for the period commending from the date of the preliminary notification published under Section 3A of the National Highways Act, 1956, till the date of the award or the date of taking possession of the land, whichever is earlier, as per the scheme of the said provision.

3. The petitioners would submit that though while making determination of the market value in accordance with Section 26 of the 2013 Act, multiplication Factor-2 was applied with respect to the land-in-question under the award, however, the benefits of the additional compensation as payable under Section 30(3) of the Act, 2013 on the total amount of the market value (including multiplication Factor-2) has not been awarded to the petitioners. The further prayer made in the writ petition is to award interest under Section 80 of the Act, 2013 on the unpaid amount, which was required to be included in the impugned award.

4. The petitioners would also pray for issuance of writ of mandamus directing the respondent authorities to grant the benefit of Schedule-II with regard to re-habilitation and re-settlement under the 2013 Act in light of the directives and guidelines issued by the Government of India, Ministry of Road Transport and Highways, appended as Annexure-’A’ to the writ petitions. The further prayer is to extend the benefits of Schedule-III with regard to infrastructural amenities, based on the notification dated 28.08.2015 issued by the Government of India, whereby the First, Second and Third Schedule of the 2013 Act have been

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