2024 SCMR 1323 SUPREME-COURT

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GOVERNMENT OF PAKISTAN through Secretary, Ministry of Defence, Rawalpindi Military Estates Officer, Hazara Circle, Abbottabad VS Mst. AYESHA BIBI (WIDOW) S. 23(1)---Land acquisition---Compensation, quantum of---Future potential/utility of acquired land---Matters to be considered in determining compensation---Several factors are to be considered, while determining the amount of compensation to be paid to the landowners for the acquisition of their land: the value of similar land nearby is considered; additionally, any increases in land value during the acquisition process may be factored in; and most importantly, the future utility of the acquired land, keeping in view the availability of facilities for its said utilization, are considered to assess its potential value---There is no single formula for the determination of the compensation due to the landowners for the compulsory acquisition of their land---Instead, different factors relevant to each situation are used together to determine the market value as defined in Section 23(1) of the Land Acquisition Act, 1894---Courts are increasingly recognizing the potential for future development when determining fair compensation for acquired land, reflecting a more holistic approach. Citation Name: 2024 SCMR 1323 SUPREME-COURTBookmark this Case GOVERNMENT OF PAKISTAN through Secretary, Ministry of Defence, Rawalpindi Military Estates Officer, Hazara Circle, Abbottabad VS Mst. AYESHA BIBI (WIDOW) Ss. 9, 18, 23 & 25---Land acquisition---Compensation, quantum of---Power of the Referee Court to enhance the rate of compensation beyond the amount claimed by the landowner in the reference application filed before the Referee Court---Referee Court, while determining the rate of compensation has to consider: firstly, that the provisions of the Land Acquisition Act, 1894 ('the Act'), and in particular, those that provide the landowners to assert their objections to the acquisition of their property and the fair value thereof have been strictly followed; and in cases, where there is a failure of strict compliance of the said provisions of the Act, and in particular Sections 9 and 25, then the Referee Court may proceed to adjudge the compensation for the acquired property beyond the amount claimed by the landowners in the reference applications, if the evidence produced by the parties justifies such enhancement in accordance with Section 23 of the Act. Citation Name: 2024 SCMR 1323 SUPREME-COURTBookmark this Case GOVERNMENT OF PAKISTAN through Secretary, Ministry of Defence, Rawalpindi Military Estates Officer, Hazara Circle, Abbottabad VS Mst. AYESHA BIBI (WIDOW) Ss. 9 & 25---Land acquisition---Compensation, quantum of---Referee Court, powers of---Only when the requirements of issuing notice under Section 9 of the Land Acquisition Act, 1894 ('the Act') are validly complied with, the penal, stringent, and restrictive provisions of Section 25 of the Act, limiting the amount of compensation to be awarded to the landowners become applicable---Therefore, it is imperative to fulfill the preceding requirements; otherwise, invoking or enforcing Section 25 to constrain the Referee Court, within the amount of compensation claimed before the Collector, as provided under Section 25(1) or within the amount of compensation awarded by the Collector as provided under Section 25(2) of the Act would be inappropriate. Citation Name: 2024 SCMR 1323 SUPREME-COURTBookmark this Case GOVERNMENT OF PAKISTAN through Secretary, Ministry of Defence, Rawalpindi Military Estates Officer, Hazara Circle, Abbottabad VS Mst. AYESHA BIBI (WIDOW) S. 23---Land acquisition---Compensation, quantum of---Future potential/value of the acquired land---In the present case the Referee Court, after confirming the report of a local commission, enhanced the amount of compensation for acquired land to Rs. 7,000,000 per kanal along with 15% compulsory acquisition charges and 6% simple interest per annum on enhanced amount of compensation from the date of taking possession of the land---High Court maintained the order passed by the Referee Court---Validity---Award determined by the Collector not only acknowledged the high value of the land, but also recorded that the land under acquisition could serve both residential and agricultural purposes---And yet, the sole reliance of the Collector on a one-year average price to determine the amount of compensation overlooked the distinctive attributes and future potential of the acquired property---While the one-year average price may be a factor in determining the market value of the land, it cannot be the sole determinant---In assessing compensation, the Collector must consider not only the current market value of the land but also its potential value---Market value is to be taken up as one existing on the date of taking possession of the land (in case of Province of Khyber Pakhtunkhwa), while the potential value is the value to which similar lands could be put to any use in future---Thus, in determining the quantum of compensation, the exercise may not be restricted to the time of taking possession of the land, but its future value shall also be taken into account---This crucial aspect was strikingly lacking in the award determined by the Collector in the present case---Determination of the value of the acquired property by the local commission was not arbitrary but was supported by reliable material, making it a credible basis for assessment of compensation---Local commission meticulously examined the site, considering factors like location, accessibility, and potential land use---Referee Court exercised its discretion prudently in arriving at a fair compensation award, and thus, the High Court had rightly declined to interfere in it---Appeals were dismissed.

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