New Delhi

The Supreme Court of India on Wednesday emphasised that the constitutional right to fair compensation in land acquisition cases cannot be weakened, ruling that payment of solatium and interest cannot depend on the financial burden involved.

A bench led by Chief Justice Surya Kant and Justice Ujjal Bhuyan made the observation while dismissing a review petition filed by the National Highways Authority of India.

The NHAI had sought reconsideration of a February 2025 judgment, which held that a 2019 Supreme Court ruling—granting compensation along with interest to landowners affected by highway projects—would apply retrospectively.

Rejecting the plea, the court said that even if the financial liability is significantly higher than earlier estimated, it cannot be a reason to revisit the decision. The bench noted that projecting a large financial burden does not justify denying lawful compensation.

The court further clarified that interest payable to landowners should be calculated as per the Land Acquisition Act, at 9 per cent, rather than the 5 per cent cap under the NHAI Act.

At the same time, the bench underlined the need to maintain legal certainty. While landowners are entitled to solatium and interest as part of “just compensation”, cases that have already been settled and attained finality cannot be reopened.

It pointed out that different landowners have pursued varied legal remedies, including arbitration and court proceedings, and not all claims can be treated equally. Allowing repeated reopening of concluded cases, the court said, would disrupt the balance between individual rights and judicial finality.

The ruling also reiterated that earlier judgments require limited clarification to ensure consistency in their interpretation and application.

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In its earlier 2019 verdict, the apex court had struck down provisions of the National Highways Act that denied solatium and interest, holding them violative of the right to equality under Article 14 of the Constitution.