RFCTLARR Act, 2013 — S. 26(1) r/w First Schedule — Multiplier factor — Rural vs Urban — Gujarat Govt circular dated 10-11-2016 — Effect of its quashing Petitioner’s agricultural land acquired for Vadodara–Mumbai Express Highway; award dated 05-09-2017 passed by Competent Authority applying multiplier factor “1” by treating land as “urban” on basis of State Circular dated 10-11-2016 (lands within Urban Development Authority limits to be treated as “urban” for RFCTLARR multiplier). Said circular already quashed by co-ordinate Bench in SCA No. 8734 of 2019 (order dated 12-09-2019); SLP (C) Diary No. 18777 of 2020 filed by State dismissed by Supreme Court on 07-01-2021. Petitioner contended land is not within any municipal/cantonment area and falls in “rural area” as defined in earlier decision in SCA No. 7458 of 2019, hence multiplier factor “2” must be applied. Held: In view of quashing of circular and affirmation by Supreme Court, Competent Authority must recompute compensation applying appropriate multiplier factor having regard to whether land is rural/urban, in line with the above judgments.

A. RFCTLARR Act, 2013 — S. 26(1) r/w First Schedule — Multiplier factor — Rural vs Urban — Gujarat Govt circular dated 10-11-2016 — Effect of its quashing

• Petitioner’s agricultural land acquired for Vadodara–Mumbai Express Highway; award dated 05-09-2017 passed by Competent Authority applying multiplier factor “1” by treating land as “urban” on basis of State Circular dated 10-11-2016 (lands within Urban Development Authority limits to be treated as “urban” for RFCTLARR multiplier).

• Said circular already quashed by co-ordinate Bench in SCA No. 8734 of 2019 (order dated 12-09-2019); SLP (C) Diary No. 18777 of 2020 filed by State dismissed by Supreme Court on 07-01-2021.

• Petitioner contended land is not within any municipal/cantonment area and falls in “rural area” as defined in earlier decision in SCA No. 7458 of 2019, hence multiplier factor “2” must be applied.

• Held: In view of quashing of circular and affirmation by Supreme Court, Competent Authority must recompute compensation applying appropriate multiplier factor having regard to whether land is rural/urban, in line with the above judgments.

B. National Highways Act, 1956 — Ss. 3A, 3G(1) — Correction/recomputation of award — Direction to Competent Authority

• Acquisition under NH Act, 1956 for expressway; award originally passed under S. 3G(1).

• NHAI’s counsel fairly submitted that determination/recomputation of compensation lies with Competent Authority, but raised no objection if High Court issued directions for such recomputation in light of quashing of the 10-11-2016 circular.

• Held: Without itself fixing the multiplier or entering merits of “rural area” determination, Court directs Competent Authority:

  • to re-compute market value and compensation of petitioner’s land by applying the appropriate multiplier factor, having regard to the geographical location as on the date of S. 3A notification, and

  • to publish a corrected award under S. 3G(1).

C. Writ jurisdiction — Award already passed — Higher court ruling intervening — Moulding of relief by consent

• Petitioner did not press for the High Court itself to apply multiplier “2” after hearing other side; agreed that matter may be remitted to Competent Authority for recomputation within a time-bound frame.

• Court, noting consensus and without deciding on the “exclusivity” of the Competent Authority to determine compensation (question kept open for appropriate case), chose to mould relief and remit matter for recomputation strictly following:

  • Gujarat HC judgment in SCA No. 8734 of 2019, and

  • Supreme Court order in SLP (C) Diary No. 18777 of 2020.

D. Directions — Time-bound recomputation

• Competent Authority directed to:

  • recompute compensation by applying appropriate multiplier factor and following the above precedents in all respects, and

  • publish corrected award under S. 3G(1)

• Within eight weeks from receipt of copy of the order.