Citation Name: 2024 YLR 1784 LAHORE-HIGH-COURT-LAHOREBookmark this Case Rana Abid Hussain vs National Highway

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Citation Name: 2024 YLR 1784 LAHORE-HIGH-COURT-LAHOREBookmark this Case Rana Abid Hussain VS National Highway Authority Ss. 4, 18 & 54---Land acquisition---Compensation, quantum of---Acquisition of land for a public purpose---Referee Court enhanced the compensation from Rs. 600,000/- per acre to Rs. 1600,000/- per acre---Propriety---Respondents filed appeal against the enhancement---Validity---Irrefutable evidence was available to establish that the property was situated on both sides of towns, which were commercial and residential in character---Even the concerned Khata had a cluster of densely populated area with multiple Government and private ventures including petrol pump, high school and police station---Property was not more than 1½ kilometers away from that point---Presence of emerging residential colonies was also established---Evidence on record unequivocally demonstrated that the property though was being used for agricultural purposes yet had assumed all the characteristics and features of commercial or residential property---Potential value of the property was much more than being extracted at the time of acquisition on account of its peculiar location in terms of its presence on the road and its closeness to two cities---Mere fact that the appellants had not converted the property from agricultural to commercial status was an irrelevant consideration to determine the potential value of the property---Appellants were not required to do so and had every right to hold and enjoy the property in the manner they so desired---Fact that most of the sale mutations brought on record consisted of small portions of land manifestly demonstrated that land in the area was a precious and scarce commodity being located close to two cities---Therefore, such sale mutations of small portions of land were not completely out of context and could not be ignored altogether when transactions of bigger holdings were not available---Especially, when the property had the potential of conversion into smaller residential or commercial units as was evident from the fact of emerging residential colonies and existence of a host of commercial ventures in close vicinity of the property---Moreover, it was an admitted fact that the property was a sizable chunk and existed as a compact block before acquisition---Property was divided into parts in consequence of acquisition, thereby, adversely affecting its value and impairing its future potential---Nevertheless, such particular negative impact on the property might have been compensated or off-set to some extent on account of overall price escalation due to the project itself but the damage caused to the property through acquisition was vividly evident---In view of the above, the elements of potential value as well as damage to the property by virtue of acquisition were duly proved---Record showed that market value of the property was much higher than awarded in the Award or by the Referee Court---Sale mutations exhibited by the appellants for the years 2013 to 2014 regarding the same Khata ranged from Rs. 16,667/- to Rs. 400,000/- per Marla---Seven mutations of Rs. 66,667/-;25,000/-; 200,000/-; 16,667/-; 75,000/-; 20,000/-; and 66,667/- more or less depicted the normal range of price in fair arm's length transactions between a willing purchaser and a willing seller in the same Khata before the date of the Notification under S.4 of the Act---Conversely, sale mutations exhibited by the National Highway Authorities regarding the same Khata for the years 2013 to 2014 ranged from Rs. 4,286/- to Rs. 5,000/----However, the National Highway Authority could not produce more than three mutations of the concerned Khata and was constrained to exhibit sale mutations fromother Khatas without proof of their relevance---Documentary evidence of the National Highway Authorities was not of any relevance or help to High Court to arrive at the fair market or potential value of the property---Average sale price per Marla of the sale mutations produced by the appellants as well as sale mutation produced by the National Highway Authorities was arrived at Rs. 60,000/- per marla approximately by discarding the rest of the sale mutations as irrelevant for being located in different Khatas without proof of relevance or pertaining to irrelevant period---However, the said price was required to be proportionately discounted in view of price of sale mutations recorded in small portions of land; most of the sale mutations being apparently with respect to residential or commercial properties; wastage of the property when converted into developed land for future use and considering that the property though being located close to two cities yet was not adjacent thereto and at a distance of at least of 1½ K.M from the cities---Balancing the pro and contra evidence of the parties to the lis in the light of factors stipulated in S.23 of the Act and settled principles of compulsory acquisition of land the High Court applied 70% deduction or discounting factor in aggregate to the average sale price determined---Potential value of the property and impact of its division was incorporated in the above formula---Accordingly, the fair market and potential value of the property was settled at Rs. 18,000/- per marla---However, the claim of compensation regarding standing sugarcane crop was dropped for insufficient evidence---Appeal filed by the National Highway Authorities was dismissed, whereas appeal filed by private persons was partially accepted by modifying the fair compensation of the property by enhancing it to Rs. 18,000/- per Marla along with entitlement to additional compensation of 15% per annum of the above fixed compensation and compound interest at 8% per annum from the date of possession of the property till the date of payment of compensation with costs of the appeal---Appeal filed by the land owners was partially allowed.

Citation Name: 2024 YLR 1784 LAHORE-HIGH-COURT-LAHOREBookmark this Case Rana Abid Hussain vs National Highway Authority Ss — 2024 YLR 1784 LAHORE-HIGH-COURT-LAHORE

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