Land Acquisition Compensation Calculation and Powers of Executing Court

Land Acquisition Compensation Calculation and Powers of Executing Court Case Laws Civil Law Compound Interest Compulsory Acquisition Charges First Appeal against Order Knowledge - Civil Law Lahore High Court Land Acquisition Litigation & Arbitration Obiter Dictum Solutions - Civil Law Mr. Justice Muhammad Sajid Mehmood Sethi in his judgment has decided the issue regarding land acquisition compensation calculation and powers of executing court in First Appeal against Order No. 216 of 2016.

1. This consolidated judgment shall dispose of instant appeal along with connected appeals as common questions of law and facts are involved in these cases.

2. Brief facts of the case are that land of respondent No.1 (I) to 1 (IV), measuring 02-Kanals and 13-Marlas, detailed in para 3 of the appeal, was acquired for construction of office of the appellant. Award dated 29.10.1987 was announced, wherein compensation of Rs.2193.4 per Marla was determined. Feeling aggrieved, respondents filed reference under Section 18 of the Land Acquisition Act, 1894 (“Act”), before Collector, which was accordingly entrusted to the referee Court/Senior Civil Judge, Gujranwala. On post remand, learned referee Court vide consolidated judgment and decree dated 11.06.2007, partly allowed the references including that of respondents No.1 (I) to 1 (IV), whereby the compensation was enhanced to Rs.5500/- per Marla instead of Rs.2193.4 per Marla. Feeling aggrieved, four Regular First Appeals were preferred by the appellant against said consolidated judgment and decree. Learned Division Bench of this Court, vide consolidated judgment and decree dated 20.03.2014, passed in RFA No.364 of 2007 titled Land Acquisition Collector, etc. v. Sardar Asghar Ali, partly allowed the appeals whereby compensation was enhanced from Rs.5500/- per Marla to Rs.7500/- per Marla with no other relief. Respondents No.1 (I) to 1 (IV) filed execution petition before Senior Civil Judge, Gujranwala, wherein the respondents averred to have already received an amount of Rs.1,33,671.88/-, and following calculations were made:

“Rs.7500 x (2-Kanals 13-Marlas)
Rs.7500 x 53-Marlas = 3,97,500/-
15 % compulsory acquisition charges of Rs.3,97,500/- = 59,625/-
3,97,500 + 59,625 = 4,57,125/-
Already Paid: 4,57,125 – 133,671.88 = 3,23,453.12/-”

While in para 8 of the execution petition, in terms of Section 28 (2) of the Act, they sought compound interest at the rate of 8 % w.e.f. 09.08.1987 to 09.07.2014. Thus, total amount claimed by said respondents / decree holders was calculated to the tune of Rs.25,83,763/-. The appellants filed objection petition under Section 47 CPC. Learned executing Court, after hearing the arguments, proceeded to dismiss the said objection petition vide order dated 15.03.2016. Hence, instant appeal against the aforesaid order.

3. Learned counsel for appellant submits that impugned order has been passed in violation of law laid down by Hon’ble Supreme Court of Pakistan in Sardar Ahmed Yar Khan Jogezai and 2 others v. Province of Balochistan through Secretary, C & W Department (2002 SCMR 122), Irshad Masih and others v. Emmanuel Masih and others (2014 SCMR 1481), Ch.Ahmed Nawaz v. Province of Punjab through Land Acquisition Collector, Jhelum and others (2015 SCMR 823) and Abdul Habib v. Fazal Muhammad and 2 others (2012 MLD 1856). He adds that the executing Court cannot go beyond the decree. In the end, he submits that impugned order is not sustainable in circumstances.

4. On the other hand, learned counsel for respondents defends the impugned order and submits that the same is absolutely in accordance with law. He adds that appellant is under statutory obligation to pay the compulsory acquisition charges at the rate of 15 % as well as compound interest at 8 % per annum. He adds that learned counsel for appellant has failed to point out any illegality or legal infirmity in the impugned order. In support of his contentions, he has placed reliance upon Syed Saadi Jafri Zainabi v. Land Acquisition Collector and Assistant Commissioner (PLD 1992 Supreme Court 472), Sheikh Muhammad Ilyas Ahmed and othrs v. Pakistan through Secretary Ministry of Defence, Islamabad and others (PLD 2016 Supreme Court 64), Hafeez Ahmad and others v. Civil Judge, Lahore and others (PLD 2012 Supreme Court 400), Jane Margrete William v. Abdul Hamid Mian (1994 SCMR 1555), Fakir Abdullah and others v. Government of Sindh through Secretary to Government of Sindh, Revenue Department, Sindh Secretariat, Karachi and others (PLD 2001 Supreme Court 131), Hameed Akhtar Niazi v. The Secretary, Establishment Division, Government of Pakistan and others (1996 SCMR 1185), Government of Punjab, through Secretary Education, Civil Secretariat, Lahore and others v. Sameena Parveen and others (2009 SCMR 1), Islamic Republic of Pakistan v. Muhammad Saeed (PLD 1961 Supreme Court 192), Ch. Ahmed Nawaz v. Province of Punjab through Land Acquisition Collector, Jhelum and others (2015 SCMR 823), Sindh High Court Bar Association through its Secretary and another v. Federation of Pakistan through Secretary, Ministry of Law and Justice, Islamabad and others (PLD 2009 Supreme Court 879), Sh. Ghulam Mohammad and another v. The Bank of Bahawalpur Ltd. and 21 others (1971 SCMR 148), Wasal Khan and others v. Dr. Niaz Ali Khan (2016 SCMR 40), Mst. Nasreen Zahra and others v. Multan Development Authority, Multan and others (2015 SCMR 1440) and Land Acquisition Collector and 6 others v. Muhammad Nawaz and 6 others (PLD 2010 Supreme Court 745).

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