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2011 CLC 897

Haji FAKIR MUHAMMAD through Attorney vs PROJECT DIRECTOR EDUCATION

Citation2011 CLC 897
CourtSindh High Court
Case No.Civil Revision Application No,110 of 2005
Date2010-12-20
Judge(s)Faisal Arab
ResultApplication allowed

ORDER

1. ' FAISAL ARAB, J.--- The land of the applicant comprising of 7-1 acres was acquired under the Land Acquisition Act for setting up a School. The market value was determined at the rate of Rs,80,000 per acre. The possession of the land was taken on 1-1-1993. Thereafter the award was passed on 29-6-1993; hence the applicant became entitled for Rs,5,62,000 as compensation for the land. He was also granted one time Rs,84,300 being 15% of the market value in the name of interest. Thus amount of Rs,6,46,300 was paid to the applicant on 12-4-2003 in execution proceedings. In the execution proceedings he had also claimed interest with effect from 1-1-1993 till the date of payment but the same was not granted on the ground that in the year 2003 when applicant received the payment he did not raise any objection and secondly in the award there was no mention with regard to the payment of interest. On such reasoning his claim for interest was denied; hence this revision application was filed.

2. ' It is an admitted position that in execution proceedings the applicant had claimed interest at the rate of Rs,15 per cent per annum.

3. ' Grant of one time 15 per cent of the market value is the entitlement of every landowner under section 23(2) of the Land Acquisition Act, which becomes part of the price of the land on account of compensatory nature of acquisition. It is usually defined as solitium. This is not interest. On the other hand 15 per annum is granted under section 28-A of the Land Acquisition Act as additional compensation which has to be given to the landowner if the possession of the property is taken over from him but the compensation is not paid to him. In the present case admittedly the possession was taken over from the applicant under the Notification issued under the provisions of the Land Acquisition Act on 1-1-1993 and the compensation was paid to him on A 12-4-2003 i.e. After more than 10 years, 3 months and 11 days of taking over possession. The applicant therefore became entitled to additional compensation under the provisions of section 28-A of the Land Acquisition Act which he though claimed in the name of interest. In the execution proceedings there was no justification for denying this additional compensation under section 28-A on the ground that the applicant has received the price of the land. The law entitles the applicant to be compensated in a manner provided under the land Acquisition Act and therefore once the land is taken over by the State against the 'wishes of the owner then all the benefits granted under the ' Land Acquisition Act are to be extended to the owner whose land is acquired.

4. ' In the circumstances this revision application is allowed. Let the concerned department work out additional compensation in terms of section 28-A of Land Acquisition Act with effect from the date of taking over the possession till 12-4-2003 when the price of the land was received by the applicant. The 15 per cent that was added to the price of the land in the name of interest has to be treated as 15 per cent compensation under the provisions of section 23(2) of the Land Acquisition Act. The said amount of Rs,15 per cent shall not be deducted while computing additional compensation under section 28-A of the Land Acquisition Act.

5. ' Civil Revision Application stands disposed of.

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