PERVAIZ AKHTAR vs LAND ACQUISITION COLLECTOR S — 2022 PLD 730 LAHORE-HIGH-COURT-LAHORE

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PERVAIZ AKHTAR VS LAND ACQUISITION COLLECTOR S. 23---Matters to be considered in determining compensation---Scope---Land owner is entitled for compensation and not the market value. S. 23---Matters to be considered in determining compensation---Future value---Scope---Court while determining the compensation was to consider the potential and future prospective of land in addition to one year average. S. 23---Matters to be considered in determining compensation---Future value---Scope---While determining the quantum of compensation the exercise may also not be restricted to the time of notification but its future value may be taken into account. S. 18---Reference to Court---Scope---Section 18 provides an opportunity to a person to raise grounds and objections with regard to award and cast duty upon the Referee Court to determine the compensation of the land which is subject matter of the acquisition---To achieve such purpose the evidence as a whole of both the parties should be considered. Preamble---Scope---Land Acquisition Act, 1894, is founded upon the doctrine that the interest of the public is supreme and that the private interests are subordinate to the interest of the State---Land Acquisition Act, 1894, is promulgated for the purpose of compulsory acquisition of land needed for the public purpose and for determination of amount of compensation to be made on account of such acquisition---Although the Land Acquisition Act, 1894, is devised to deprive citizens of their valuable rights in property through somewhat coercive measures by State exercising authority under a Statute but such exercise can only be for public purpose---However, bare reading of the Land Acquisition Act, 1894 leaves one with the strong impression that prime intent of the legislature is to ensure the protection of the rights of the citizens whose property is being acquired---Land owner are to be given gold for gold and not copper for gold---Scheme of law under the Land Acquisition Act, 1894 is complete and exhaustive, which apart from mode of acquisition of land, provides a scheme containing mechanism for measurement of land, assessment of its value, payment of compensation to the affected persons and remedy in case of any dispute. S. 23---Matters to be considered in determining compensation, detailed. S. 18---Reference to Court---Scope---Land of the appellants was acquired through acquisition proceedings---Rate of the acquired land was fixed at Rs.4,00,000/- per acre---Appellants claimed rate of the acquired land at the rate of Rs.35,00,000/- per acre---Referee Court dismissed the reference---Validity---Document prepared by Patwari revealed that average sale price was Rs.35,00,000/- per acre---Several earlier sale mutations, produced by appellants, had substantiated the version of appellants---Report of local commission revealed that the acquired land was situated at the main road; that the acquired land was situated near populated area as well as commercial area; that due to acquisition, the land of appellants was bifurcated into different parts and was no longer cultivable and that the rent of land was Rs. 50,000/- per acre---Girdwar of the procuring agency during cross-examination had admitted that the land of the appellants was situated at the main road---Land Acquisition Collector and Land Acquisition Officer had also admitted that the acquired land was one kilometer away from Abadi Deh---Evidence produced by appellants was enough to shift the onus on the procuring agency---Procuring agency had failed to justify their stance by necessary proof---Referee Court had failed to discharge its function in accordance with law---Appellants were declared entitled to get compensation at the rate of Rs.35,00,000/- per acre along with 15% compulsory charges and simple interest @ 8% from the date of possession till payment of compensation---Appeal was allowed. S. 23---Matters to be considered in determining compensation---Expression "Market-value"---Defined. S. 23---Matters to be considered in determining compensation---Scope---Land owner is entitled for compensation at the market value of the land so acquired coupled with the amount of damages sustained due to acquisition proceedings---Land owner is entitled to compensation in view of its future potential value and additional compensation for reverence, injurious affection and disturbance---Landowner is entitled to compensation and not just market-value, hence, loss or injury occasioned by its severing from his property by change of residence or place of business and loss of profits are also relevant---Delay in the conclusion of the acquisition proceedings cannot be lost sight of---While conducting the aforesaid exercise, oral evidence, if found, credible and reliable can also be taken into account. Ss. 4, 5-a, 6, 11, 12, 18 & 23---Publication of preliminary notification and powers of officers thereupon---Hearing of objections---Declaration that land is required for a public purpose---Enquiry and award by Collector---award of Collector when to be final---Reference to Court---Matters to be considered in determining compensation---Scope---Scheme of the act is very simple as it consists of fifty five sections divided into eight parts---Procedure of acquisition starts when a notification under S. 4 is issued notifying the land required for a public purpose and inviting objections---Objection to such acquisition may be made by any person having interest in the property and the hearing is granted on the objections, if any, raised under S. 5-a whereas the determination that the land is required for public purpose is done by issuing declaration in the notification in terms of S. 6---Section 11 postulates the enquiry and passing of the award by the Collector and while doing so, it requires the Collector to determine (i) the true area of the land (ii) the compensation which in his opinion should be allowed for the land and (iii) the apportionment of the said compensation amongst all the persons known or believed having interest in the land, of whom or of whose claim, he has information, whether or not they have respectively appeared before him---Section 12 states that the award of the Collector shall be final and conclusive evidence as between the Collector and the person interested, in respect of the amount of compensation---award is merely an offer to tender the compensation to the owner of the property and if the offer is not acceptable, S. 18 of the act grants the owner of the land a statutory remedy for seeking determination of the amount of compensation from the Court by filing reference before the Collector---assessment of compensation is made in the light of S. 23 which stipulates guiding principles for the Courts to consider the compensation on the move of a person who has an interest in the acquired land and is aggrieved of the compensation determined and settled through award. S. 18---Reference to Court---Scope---Reference application is an independent, original proceeding for determination of the compensation afresh on the basis of the material produced and proved before the Referee Court by the parties---After institution of the reference application it is duty of the procuring agency to provide information on the basis of which the compensation was determined and then to prove it through confidence inspiring evidence---Referee Court does not act as an Appellate Court charged with the function of affirming or reversing the findings of the Acquisition Collector which form the basis of the award rather it has to apply its independent mind while determining the amount of compensation to be awarded to the complaining party.

PERVAIZ AKHTAR vs LAND ACQUISITION COLLECTOR S — 2022 PLD 730 LAHORE-HIGH-COURT-LAHORE

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