Syeda NASREEN ZOHRA (DECEASED) vs GOVERNMENT OF THE PUNJAB through Secretary Communication and Works Departmen

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Syeda NASREEN ZOHRA (DECEASED) VS GOVERNMENT OF THE PUNJAB through Secretary Communication and Works Department, Lahore Ss. 31 & 34---Compensation not paid or deposited in Court---Compound interest, payment of---Scope---Compound interest would continue to accrue till such time that the entire compensation is paid in its entirety---Once the original amount has been deposited (in court), the matter goes out of the penal consequences of section 34 of the Land Acquisition Act, 1894---However, it would be unfair, unjust and contrary to the policy of the law to put a landowner at an unfair disadvantage for recovery of the accrued amount of compensation and give an unfair advantage to the acquiring department which can delay payment of accrued compound interest indefinitely; this would lead to an absurd situation and could not be the intent of the law---Thus, in such an event, simple interest would be payable on the amount that has accrued by way of compound interest till such time that the accrued and outstanding compound interest is paid to the person who is entitled to receive compensation for his/her acquired land. Head NotesCase Description Citation Name: 2022 SCMR 890 SUPREME-COURTBookmark this Case Syeda NASREEN ZOHRA (DECEASED) VS GOVERNMENT OF THE PUNJAB through Secretary Communication and Works Department, Lahore Ss. 18, 31 & 34---Compensation not paid or deposited in Court---Payment of interest---Mandatory requirement---After the Award has been made, the Collector is bound to tender the payment in question---If the Collector is prevented from doing so, he is, required to tender the same in Court---In case the Collector does not make the payment, the landowner becomes entitled to interest as provided in section 34 of the Land Acquisition Act, 1894---Payment of such interest is mandatory in nature and its payment cannot not be denied. Head NotesCase Description

Syeda NASREEN ZOHRA (DECEASED) vs GOVERNMENT OF THE PUNJAB through Secretary Communication and Works Department, Lahore Ss — 2022 SCMR 890 SUPREME-COURT

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