National Highways Authority of India Vs Tarsem Singh And Others (Supreme Court of India)
Solatium Yes, But Not Forever: SC Bars Reopening of Closed Land Acquisition Claims
The Supreme Court, while deciding NHAI’s review in the Tarsem Singh line of cases, refused to revisit its earlier ruling granting solatium and interest to landowners under the National Highways Act-even for the 1997-2015 period-despite a massive revised financial burden (₹29,000 crore).
The Court reaffirmed that:
- Right to just compensation is constitutional (Article 300A) and cannot be denied due to financial burden.
- Solatium, interest, and interest on solatium are integral components of compensation and must be granted.
However, the Court introduced crucial limitations to prevent reopening of stale claims:
1. No reopening of concluded cases: Where compensation proceedings attained finality before 28.03.2008, landowners cannot reopen cases to claim solatium/interest.
2. Relief only for live claims: Benefits are available only where compensation proceedings were pending (alive) on or after 28.03.2008.
3. Penalty for delay: If landowners raised claims belatedly, they will not get interest for the delayed period—interest runs only from the date of claim.
4. Equitable balancing: The Court balanced substantive rights vs. delay, ensuring entitlement but curbing misuse through stale litigation.
5. No recovery from landowners: Any solatium/interest already paid cannot be clawed back.
The ruling thus preserves the right to enhanced compensation, but firmly shuts the door on revival of long-settled disputes, bringing finality with fairness
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
