Supreme Court Seeks Amendment to National Highways Act

The Supreme Court of India on 23 July 2026 stated that it is prima facie unacceptable for bureaucrats to decide land compensation disputes under the National Highways Act, 1956. A three-judge bench headed by Chief Justice of India Surya Kant and comprising Justices Joymalya Bagchi and V. Mohana urged the Union government to amend the law so that judicially trained adjudicators handle such disputes.

National Highways Act, 1956

The National Highways Act, 1956 is a Central law that provides for the declaration, acquisition, and maintenance of national highways in India. It is one of the principal statutes used for land acquisition for highway projects, including widening, expansion, and construction of new road corridors.

Land Compensation Framework

Land compensation under acquisition laws generally covers the market value of the acquired land and statutory additions such as solatium and interest. Solatium is an additional amount paid under land acquisition law, and interest is payable in specified cases when compensation is delayed. The Supreme Court noted that compensation disputes under other land acquisition laws are decided by judicially trained authorities, while the National Highways Act has remained an exception. The Court also observed that land adjoining national highways often has higher market value than inland agricultural land.

Role of Adjudicating Authorities

Under land acquisition law, adjudicating authorities determine disputes relating to valuation, apportionment, and statutory benefits. Judicially trained adjudicators are usually associated with courts, tribunals, or authorities with legal training in evidence, valuation, and statutory interpretation. The bench stated that the present system under the National Highways Act places landowners at a systemic disadvantage. It also recorded that farmers in some cases were denied solatium and interest until judicial intervention.

Important Facts for Exams

• The National Highways Act, 1956 is a Central law governing national highway acquisition and related procedures.
• Solatium is a statutory addition to compensation in land acquisition matters.
• Judicially trained adjudicators are used in many land acquisition disputes under other laws in India.
• The Supreme Court of India functions as the apex court under Article 124 of the Constitution of India.

Current Status

The Union government has informed the Court that it is seriously considering amendments to the National Highways Act, 1956. The bench said it would await the government’s decision on the proposed legislative changes.