WAPDA through Project Director vs AZAM KHAN and others
This appeal challenged a Lahore High Court judgment awarding interest on land acquisition compensation from the date of the Section 4 notification under the Land Acquisition Act, 1894, and at the profit rate of the National Bank of Pakistan. The appellant argued the appeal was time-barred by 842 days, contending the interest should accrue from the date of possession and be capped at 8% compound interest under Section 34 of the Act. The Supreme Court found the appeal time-barred, noting that the appellant failed to provide sufficient grounds for condonation of delay. Regarding the interest rate, the Court observed that the High Court's application of the National Bank profit rate appeared to be an accidental slip. With the respondents' consent, the Supreme Court modified the judgment to specify that compound interest at the rate of 8% per annum should be paid, directing the Executing Court to calculate the amount accordingly. The appeal was disposed of with this modification, while the limitation plea remained effective against the appellant's broader challenge.
- Can an appeal be entertained when it is barred by a significant period of delay without sufficient grounds for condonation?
- Is a judgment awarding interest from the date of a Section 4 notification void ab initio if possession was taken simultaneously?
- Can an appellate court modify a judgment to correct an accidental slip regarding interest rates with the consent of the parties?
- Section 4, Land Acquisition Act 1894
- Section 34, Land Acquisition Act 1894
Munir A. Sheikh, J.--Today, Civil Misc. Application for stay is fixed. Learned counsel for the parties are ready to argue the appeal as short questions are involved.
2. This appeal is directed against the judgment dated 6.2.2001 of a Division Bench of the Lahore High Court, Rawalpindi Bench, Rawalpindi through which regular first appeal filed by the respondents in acquisition proceedings was accepted and it has been ordered that interest shall be paid on the compensation awarded to the respondents from the date of notification issued under Section 4 of the Land Acquisition Act and the same should also be paid at the profit rate of the National Bank of Pakistan.
3. This appeal is barred by 842 days. Learned counsel for the appellant says that since the judgment on the said two points is void abinitio, for under the provisions of the Land Acquisition Act, the interest is payable from the date of delivery of possession of the land after acquisition and not from the date of notification under Section 4 of the Act and further under Section 34 ibid, compound interest was payable at the maximum rate of 8%.
4. As to the first point, the same requires probe into fact whether the possession was taken over by the appellant simultaneously with the issuance of notification under Section 4 or later on. Since the High. Court has granted the interest from the date of notification under Section 4, therefore, it shall be deemed to have been held that the possession was taken by the appellant simultaneously with the issuance of the said notification, therefore, the judgment is not void abinitio, as such, plea of bar of limitation is available qua the said plea.
5. As regard second contention, the remedy of the appellant was to make an application to the High Court for correction of the judgment because the same appears to be due to an accidental slip. Learned counsel for the respondents has no objection if the judgment is amended accordingly.
6. This appeal as observed above is barred by 842 days. The reasons given in the application seeking enlargement of time are not sufficient grounds for condonation of delay.
7. However, with the consent of the learned counsel for the respondents, it is observed that the compound interest on the awarded amount as per terms of the impugned judgment of the High Court shall be paid to the respondents at 8% instead of profit rate of National Bank of Pakistan. In the execution proceedings, the amount due as interest shall be calculated as if compound interest at the rate of 8% has been awarded to which extent the judgment of the High Court shall be deemed to have been amended. The Executing Court shall decide the matter expeditiously.
8. With the above modifications, this appeal is disposed of.
9. No order as to costs.