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Award of Fair Compensation in Land Acquisition Cases is Important; Both Market Value and Potential Future Value of the Land should be taken into Account --- Lahore High Court

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Award of Fair Compensation in Land Acquisition Cases is Important; Both Market Value and Potential Future Value of the Land should be taken into Account --- Lahore High Court

Islamabad 29-06-2024: In a significant ruling, the Lahore High Court has upheld the decision to increase compensation for landowners whose properties were acquired for the relocation of an Ammunition Depot from Thokar Niaz Baig to Wan Khara, Tehsil Chunian, District Kasur. This decision in case [RFA No. 31423 of 2021], reaffirms the Referee Court's earlier judgment that the initial compensation awarded was inadequate.

The dispute arose from the acquisition of land by the Government of Pakistan for shifting an Ammunition Depot. The Land Acquisition Collector had awarded compensation that the landowners found insufficient. They challenged this in the Referee Court, which subsequently increased the compensation amount. Both the Government and the landowners then appealed this decision, the former seeking to revert to the original compensation and the latter seeking further increases.

The Lahore High Court, presided over by Mr. Justice Muhammad Sajid Mehmood Sethi and Mr. Justice Asim Hafeez, found that the Referee Court's decision was based on substantial evidence, including market value assessments and potential value considerations. The Court noted that the Government had failed to provide convincing evidence to contest the enhanced compensation, while the landowners could not substantiate claims for further increases.

The High Court dismissed the Government’s appeals and the cross-appeals by the landowners, thereby upholding the Referee Court’s decision to award higher compensation. The Court emphasized the importance of fair compensation in land acquisition cases, taking into account both market value and potential future value of the land.

This ruling is seen as a significant affirmation of landowners' rights to fair compensation and sets a precedent for future land acquisition cases. The decision ensures that the affected landowners in Kasur receive an equitable payment for their acquired land, reflecting its true market and potential value.

The judgment brings closure to a prolonged legal battle, providing a clear directive on compensation standards in land acquisition cases under the Land Acquisition Act, 1894.