GOVERNMENT OF PAKISTAN Through Secretary, Communication, Islamabad
This petition for leave to appeal challenged a Lahore High Court judgment affirming a Senior Civil Judge's decision regarding compensation for land acquired by the Government under the Land Acquisition Act, 1894. The Government had acquired land for telecommunication facilities, initially awarding compensation at Rs. 15,000 per Kanal. The respondent sought a reference under Section 18 of the Act, leading the Senior Civil Judge to enhance the compensation to Rs. 60,000 per Kanal, a decision upheld by the High Court. The core legal question was whether the compensation awarded by the lower courts was correctly assessed based on the market value of the land in the vicinity. Upon review, the Supreme Court found that evidence of nearby land sales and auction prices supported the valuation of Rs. 60,000 per Kanal. Consequently, the Court held that the lower courts' assessment was justified based on the available data. The petition was dismissed, affirming the principle that compensation must reflect the market value of the land at the time of acquisition.
- Is the compensation awarded by a court for acquired land justified when supported by evidence of sale prices of land in the vicinity?
- Does a reference under Section 18 of the Land Acquisition Act 1894 allow for the re-evaluation of compensation based on market data?
- Section 18, Land Acquisition Act 1894
ORDER
1. S. USMAN ALI SHAH, J.---The petitioner seeks leave to appeal against the order of the Lahore High Court, dated 8-3-1987, passed in Civil Appeal No.48/83, whereby the order passed by the Senior Civil Judge in favour of the respondent was affirmed.
2. Briefly the facts of the case are that the land in dispute, subject-matter of this petition was acquired by the Government under the Land Acquisition Act, 1894 for expansion of Tele- Communication System/Facilities and for construction of staff quarters, the Notification dated 31-1- 1978 in this regard Was published on 6-3-1978. Award for compensation at the rate of Rs.15,000 per Kanal plus 15% compulsory acquisition plus 8% interest was announced by the Collector, D.G. Khan on 25-2-1979. The respondent being not satisfied with this award claimed reference under section 18 of Act, which was accordingly made by the Collector to the Senior Civil Judge which was accepted and the compensation was assessed at the rate of Rs.60,000 per Kanal plus 15% for compulsory acquisition plus interest at the rate of 8%. The petitioner filed appeal against this order before the Lahore High Court which was dismissed by the impugned judgment.
3. The learned counsel for petitioner mainly argued that the rate of Rs.15,000 per Kanal was fixed with the consent of the respondent. We have gone through the objection petition under section 18 of the Acquisition Act, of the respondent and find that the land close in the vicinity of the acquired land is sold at the rate of Rs.7,000 per Marla. There are mutations of some land near acquired and taken over for the development of the Provincial Government. We find that from 26-11-1977 the sale-deed and the mutation So produced shows, that the average of sale price so calculated is more than Rs.60,000 per Kanal. It is also in the statement of Sanaullah Sub-Engineer that the Government land was auctioned from Rs.6,500 to Rs.10,500 per Marla. The prices in our view, were correctly calculated at the rate of Rs.60,000 per Kanal and the learned counsel was unable to satisfy us that the calculation of the data produced and the sale prices in the vicinity is less than Rs.60,000 per Kanal.
4. Thus under the circumstances, we find no justification for interference in the impugned judgment.
5. The petition is, accordingly, dismissed.