COLLECTOR OF LAND ACQUISITION, ABBOTTABAD and others vs Alhaj SARDAR
This matter concerns a series of appeals filed by the Collector of Land Acquisition, Abbottabad, and the Ministry of Defence, challenging the enhancement of compensation for land acquired for the expansion of the Pakistan Military Academy. The core legal question was whether the compensation awarded by the High Court for the acquired agricultural and constructed properties was excessive or legally unjustified. The Supreme Court upheld the High Court's decision, dismissing the appeals filed by the acquiring department. The Court reasoned that the acquired property's strategic location, being contiguous to a significant national institution and posh residential areas, inherently justified a higher market value. Furthermore, the Court noted that the compensation rate aligned with a previous judicial precedent involving similar land acquisitions for the same Academy, which had already been affirmed by the Supreme Court. The key principle laid down is that the strategic location and contiguity of acquired land to established, high-value institutions are critical factors in determining fair market compensation, and judicial consistency regarding compensation rates for similar acquisitions in the same vicinity should be maintained.
- Does the strategic location of land contiguous to a national institution justify higher compensation in acquisition proceedings?
- Should compensation rates for land acquisition align with previous judicial determinations for similar properties in the same vicinity?
- Can the acquiring department challenge compensation awards that are consistent with established precedents for the same project?
- Section 11, Land Acquisition Act 1894
- Section 18, Land Acquisition Act 1894
' SARDAR MUHAMMAD RAZA KHAN, J.--- All the appeals, arising out of and all the respondents being affectees from one and the same Award No,14 dated 19-12-1994, are taken up together.
2. The Government of Pakistan/Ministry of Defence needed to expand the limits of Pakistan Military Academy at Abbottabad. Military. Estate Officer Abbottabad filed a requisition for compulsory acquisition of land. The Land Acquisition Collector, Abbottabad initiated acquisition proceedings and finally announced Award No, 14 on 19-12-1994 under section 11 of the Land Acquisition Act, 1894.
The rates of constructed properties and landed properties were fixed as follows:---
(1) Building structures. Rs,200 per square foot.
(2) Agricultural Land Rs,3,29,116/06 per Kanal.
(3) Baghicha Rs,8,16,661/40 per Kanal.
3. The affectees filed objection petitions under section 18 of the Land Acquisition Act, 1894, whereupon the Referee Judge enhanced the compensation as follows:--
(1) Building structures. Rs,300 per square foot.
(2) Agricultural Land Rs,5,29,395/06 per Kanal.
4. The landowners went in appeals before the High Court where the compensation of Agricultural land was further enhanced from Rs,5,29,350 to Rs,7,00,000 per Kanal along with 15% compulsory acquisition charges and 6% simple interest from the date of possession till payment. The cross- appeals of the acquiring department were, however, dismissed. Collector Land Acquisition Abbottabad, Government of Pakistan through Secretary Defence Islamabad and Military Estate Officer Abbottabad have challenged such judgments dated 12-3-2004 of the learned Division Bench of Peshawar High Court, Abbottabad Bench.
5. The very requirement that the limits of Pakistan Military Academy are to be expanded and its boundaries are to be widened, is a proof of the fact that the acquired property is immediately contiguous to the Academy. The market value of the constructed as well as landed properties is glaringly determinable from the fact that it is contiguous to the most important National and Historical Institution that exists since 1947. Needless to mention that the most posh residential Colonies are contiguous to the Academy as well as the property acquired. It has, therefore, a strategic location which is bound to enhance its market value, muchless the compensation which is always higher than the market value. In our view the affectees should have felt aggrieved of the compensation fixed, rather than the appellants.
6. For similar purpose of expansion of Academy some landed properties had earlier been acquired vide Award No,11 of 26-5-1993. Such acquisition having accrued one and a half year prior to the present acquisition was challenged by the landowners where the Referee Judge had fixed the amount of compensation at Rs,5,00,000 per Kanal. A learned Division Bench of Peshawar High Court Abbottabad Bench while deciding R.F.A. No,13 of 1998 on 18-9-2003 enhanced the same compensation to Rs,7,00,000 per Kanal. The aforesaid judgment was upheld by this Court vide judgment dated 10-7-2008 rendered in Civil Appeals Nos.1470 to 1487 of 2004.
7. Although for Award No,14 dated 19-12-1994 announced much subsequently, the price could have been on the higher side yet, in the present case it was fixed equal thereto. We, therefore, have no reason to disagree therewith especially in the appeals filed by the acquiring department and the acquiring agencies. For unavoidable legal as well as factual aspects of the case in hand, all the appeals are hereby dismissed with no order as to costs.