PROVINCE OF PUNJAB vs SHER MUHAMMAD And Another
This matter concerns a petition for leave to appeal filed by the Province of Punjab against an order of the Lahore High Court, which refused to stay execution proceedings regarding compensation awarded for land acquired under the Lahore Township Scheme. The respondents were granted compensation at a rate of Rs.2,000 per Kanal by the civil court following a reference under the Land Acquisition Act. The High Court had declined to stay the execution but permitted the respondents to withdraw the awarded amount subject to furnishing security for potential refund, should the government's appeal succeed. The petitioner challenged this interim order, raising issues regarding the maintainability of the reference, limitation, and the government's alleged lack of funds. The Supreme Court held that the legal questions regarding the merits of the appeal would be addressed by the High Court during the final adjudication. Furthermore, the Court ruled that a plea of non-availability of funds does not justify staying execution proceedings, especially when the High Court has already secured the petitioner's interest by requiring security for refund. Consequently, the petition was dismissed as the Court found no justification to interfere with the High Court's discretionary interim order.
- Does the non-availability of funds justify a stay of execution proceedings in a land acquisition case?
- Can the Supreme Court interfere with a discretionary interim order of the High Court regarding the stay of execution?
- Is it appropriate for the High Court to allow the withdrawal of compensation money subject to the furnishing of security for refund pending an appeal?
- Section 18, Land Acquisition Act 1894
ORDER
M.S.H. QURAISHI, J.--For the lands of the respondents acquired for the Lahore Township Scheme vide notification dated 3-5-1960, the civil Court on a reference made to under section 18 of the Land Acquisition Act, allowed the respondents compensation at the rate of Rs.2,000 per Kanal. The petitioner, i.e., province of the Punjab thereon filed a Regular First Appeal in the Lahore High Court and also applied for stay of the execution proceedings. The High Court on 13-6-1982 declined to grant the stay but permitted the respondents to receive the money only on furnishing security for refund if the appeal ultimately succeeds. The petitioner sought review of the order and raised a number of contentions which the learned Judges felt had not been raised earlier and not finding any justifiable ground declined to review vide order dated 4-7-1982. This petition is directed against both the orders.
2. Learned counsel submits that there are many legal questions involved in the appeal, such as maintainability of the reference which had been filed after the award had been accepted by the respondents, limitation and computation of interest, etc. He even urges that funds are not available with the Government to pay the amount of the award. The legal points involved will, of course, be attended to by the High Court when deciding the appeal. The plea of non-availability of funds can hardly justify stay of the execution proceeding. The High Court has already ordered that the payment will be subject to furnishing security for refund and as such we find no proper justification for interfering with an interim and discretionary matter. The petition is dismissed.