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2008 CLC 1247

PROVINCIAL GOVERNMENT through Chief Secretary, N.As. Gilgit and 4 others

Citation2008 CLC 1247
CourtSupreme Appellate Court Northern Areas
Judge(s)Altaf Hussain, Syed Tahir Ali Shah
ResultPetition dismissed

1. ' SYED TAHIR ALI SHAH, J.--- Instant petition for leave to appeal is the outcome of order, dated 13-9- 2007, passed by the Chief Court of N.As. Gilgit in a writ petition filed by present respondents whereby the Chief Court allowed the petition and issued writ of mandamus.

2. ' A piece of land belonging to Ghulam Abbas respondent and twenty others was possessed by the Land Acquisition Collector Gilgit/petitioner No,2 in the year 1999, for the construction of a jeep road.

3. ' As contended, no award was passed by the Collector concerned for the land possessed. However, on the repeated demand of the landowners Award bearing No,DK-1(Iqbal)/2786/87/2004 was passed on 31-5-2004. The amount of compensation determined by the Land Acquisition Collector, Gilgit was paid to landowners (affectees) in the year 2004. While making the payment of compensation the Collector Land Acquisition failed to pay interest on the amount of award and the A affectees aggrieved thereby filed a constitutional petition before the Chief Court N.As. Which was allowed. Hence the present petition.

4. ' Mr. Muhammad Kamal, Assistant Advocate-General Northern Areas, appearing for the petitioners confined his submission to the sole point that the proper course to be adopted by the affectees/respondents was to file a reference under section 18, Land Acquisition Act. He further submits that the relief claimed through writ petition is illegal and without jurisdiction. We have given our anxious thought to the point argued before us by going through the relevant record and related provisions of Land Acquisition Act. For elaboration the relevant provisions of sections 18 and 34 of the Land Acquisition Act are reproduced:-- "Section 18 reference to Court.--- (1) Any person interested who has not accepted the award may, be written application to the Collector, require that the matter be referred by the Collector for the determination of the Court, whether his objection to be the measurement of the land, the amount of the compensation, the persons to whom it is payable, or the apportionment of the compensation among the persons interest."

5. ' Bare reading of above referred provisions make it abundantly clear that reference under this section shall be made by a person who has not accepted the award. In the instant matter affectees/landowners have received the compensation amount and not made the award a disputed one. Further the landowners have no objections to the measurement of land acquired.

6. They have no case for the amount of compensation by the Collector nor have they disputed apportionment of compensation money inter se. The amount of "interest" claimed by the respondent clearly falls out of the ambit of the above provision and is not hit by for non-filing of the reference envisaged under section 18 of the Land Acquisition Act.

7. "Section 34, payment of interest.-- When the amount of such compensation is not paid or deposited on or before taking possession of the land, the Collector shall pay the amount awarded with interest thereon at the rate of six per centum per annum from the time of so taking possession until it shall have been so paid or deposited."

8. ' This section speaks that the award does not include the solitium under section referred above. The interest is an additional benefit to be allowed to the landowners over and above the compensation determined by the Collector for the property acquired. In other words "interest" is rider in nature to the compensation determined under the award, thus, whenever applicable same to be awarded invariably being mandatory in nature.

9. ' Furthermore for elaboration the claim for interest, not falling under the provisions of section 18 and rider to the compensation money under the award independent remedies by way of filing a suit or challenging the same through constitutional jurisdiction is available to the person aggrieved.

10. ' The cumulative effect of the provisions contained in section 18 of the Land Acquisition Act is that the interest to be paid on the compensation amount is not inclusive in the compensation rather an additional relief, its realization is out of the ambit of reference under section 18, Land Acquisition Act. The Collector concerned, if fails in obligation either to disburse the amount of compensation to the landowners or to deposit it in the Court as the case may be, after taking possession of the property under award, is bound to pay the "interest" to the party concerned from the date of taking possession till payment/ deposit of compensation money as envisaged in section 34 of the Land Acquisition Act. In case the interest is not paid in the circumstances above highlighted the party concerned has a right to file a regular suit or invoke the writ jurisdiction for its realization. There is no bar to invoke the writ jurisdiction for the realization of "interest" money by an aggrieved person.

11. ' Before parting with the order we take notice of the fact that procedure laid down in the Land Acquisition Act for acquisition of land is not properly followed, rather ignored by the concerned Collector resulting in unnecessary litigation between the parties and the Government besides burden on the Government exchequer in the shape of payment of interest over and above the compensation determined. This lethargic attitude should be discouraged in future in the interest of Government itself and public-at-large. Copy of this order be sent to the Home Secretary, Northern Areas, with the directions to issue a circular to all the Land Acquisition Collectors in Northern Areas, to follow the provisions of Land Acquisition Act in its true spirit while preparing award lest necessary remarks in their A.C.Rs, be incorporated.

12. ' With the observations made above the petition for leave to appeal, being meritless is dismissed in limine.

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