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2004 MLD 801

AZAM KHAN and 16 others vs LAND ACQUISITION COLLECTOR, WAPDA,

Citation2004 MLD 801
CourtLahore High Court
Judge(s)Ali Nawaz Chohan, M. Javed Buttar
ResultAppeal allowed

' M. JAVEI) BUTTAR, J.---This first appeal is directed against the order and decree dated 12-2-1989 of Senior Civil Judge, Attock, whereby the appellants' reference under section 18 of the Land Acquisition Act, 1894, was answered in negative and their request for enhancement of compensation was declined.

2. The relevant facts are that appellant's land measuring 66 Kanals, situated in village Narrara, Tehsil Pindi Ghab, District Attock, was acquired for the construction of 66-KV Grid Station at Lakarmar by the Water and Power Development Authority. Notification under section 4 of the Land Acquisition Act, 1894, was issued on 10-3-1982. The Land Acquisition Collector, announced his award for the compensation of the land on 15-4-1984 and he assessed the market value of the acquired land at Rs.3325.40 per Kanal. Being aggrieved thereby, the appellants filed the reference under section 18 of the Land Acquisition Act, 1894, allegation that the compensation was inadequate and claimed Rs.20,000 per Kanal as compensation. The application was resisted by the respondents and it was averred that the market value of the land under the acquisition had been properly assessed after a thorough scrutiny. The learned trial Court framed the necessary issues.

Issue No.3 is reproduced below as the arguments have been addressed by the learned counsel for the parties only on this issue:-- "(3) Whether the compensation of the land acquired by the respondents had been undervalued, if so, what is the correct amount of the compensation? OPR"

3. The learned trial Court after having recorded the evidence produced by the parties and after hearing the arguments advanced by the learned counsel, answered the reference in negative and dismissed the reference application with costs. Hence this appeal.

4. Learned counsel for the appellant has mainly referred to Exh.P.6, copy of sale-deed dated 13-6- 1982, which evidences the sale of an area measuring 4 Kanals for a total consideration of Rs.40,000 i.e. At the rate of Rs.10,000 per Kanal and on the basis of this sale, it is argued that the appellants are entitled to compensation at the rate of Rs.10,000 per Kanal with the profit at the bank rate from the date of acquisition. It has further been argued that the learned trial Court did not take into consideration the upward trends in the increase of the prices and the potential value of the land in dispute. In the end it is submitted that the learned trial Court also failed to take into consideration the fact that the notification of the acquisition was issued in March, 1982 and the award was made two years after the same in April, 1984 and there was an upward trend in the prices of the land during the period.

5. Learned Standing Counsel for Government of Pakistan while opposing the appeal, has submitted that the reliance on Ex.P.6 is misconceived because the same refers to a sale effected on 13-6-1982 whereas the acquisition notification was issued on 10-3-1982 and it is settled law that for the purposes of determination of market value the relevant period is the date when the notification under section 4 of the Land Acquisition Act, 1894, is issued.

6. The copy of sale-deed Exh.P.6 dated 13-6-1982 shows that in June, 1982, a piece of land measuring 4 Kanals was sold for a consideration of Rs.40,000 i.e. At the rate of Rs.10,000 per Kanals.

This sale took place just three months after the issuance of the Notification under section 4 of the Land Acquisition Act, 1894 and the same cannot be ignored merely because it did not take places prior to 10-3-1982. The period of this sale is relevant as it is the approximately the same period when the land in dispute was acquired and it shows the market value of the lands situated in the vicinity. We have also noticed that the learned trial Court has also failed to take into consideration the upward trend in the sale prices. Furthermore, the learned trial Court did not take into consideration the fact that the award was announced by the Land Acquisition Collector, Attock, more than two years after the issuance of the notification under section 4 of the Land Acquisition Act, 1894, and the upward trend in the prices of the land during this period. In N.-W.F.P. Through Collector, Abbotabad Land Acquisition and others v. Haji All Asghar Khan and others (1985 SCM R 767), the Honourable Supreme Court took into consideration the fact of the award having been made some two years after the issuances of the acquisition notification and the upward trend in the prices of the lands during this period. Keeping in view all these facts and circumstances, we are of the view that the value of the land for the purposes of payment of compensation should be fixed at Rs.9000 (rupees nine thousands) per Kanal.

7. The upshot is that the present appeal is allowed to the extent that the order and decree of the learned Senior Civil Judge is set aside and the amount of compensation, awarded to the appellants by the Land Acquisition Collector, Attock, is enhanced from Rs.3325.40 per Kanal to Rs.9,000 per Kanal and the appellants are also entitled to the profits on the amount of compensation at the interest/profit rate, being awarded by the National Bank of Pakistan, on its saving accounts, w .e.f. The date of issuance of the Notification under section 4 of the Land Acquisition Act; 1894. There shall be no order as to costs.

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