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K.L.R. 2011 Revenue Cases 101

Haji Fakir Muhammad Through His Attorney Muhammad Ramzan vs

CitationK.L.R. 2011 Revenue Cases 101
CourtSindh High Court
Case No.Civil Revision Application No. 110 of 2005
Date2010-12-20
Judge(s)Faisal Arab
ResultCivil Revision Application stands disposed of. Revision application allowed.

1. ORDER FAISAL ARAB, J.--- The land of the applicant compromising Of 07-01 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.

2. 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.

3. It is an admitted position that in execution proceedings the applicant had claimed interest at the rate of Rs. 15 percent per annum.

4. Grant of one time 15% percent of the market value is the entitlement of every land owner 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 solatium. 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 land owner 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 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 the 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.

5. 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.

6. The 15% percent that was added to the price of the land in the name of interest has to be treated as 15% percent compensation under the provisions of Section 23(2) of the Land Acquisition Act. The said amount of Rs. 15% percent shall not be deduced while computing additional compensation under Section 28-A of the Land Acquisition Act.

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