Compensation provided in Land Acquisition Cases must reflect both Market and Potential Value, considering any delays in Awarding Compensation --- Supreme Court of Pakistan
Islamabad 18-03-2025: The Supreme Court of Pakistan has dismissed two appeals concerning compensation for land acquisition by the Punjab Highway Department, reinforcing key legal principles regarding just compensation, procedural compliance, and potential land value considerations.
The appeals, [Civil Appeal No. 119-L of 2022] and [Civil Appeal No. 3952 of 2022], stemmed from a dispute over land acquired in Lahore’s Tehsil City for the construction of an overhead bridge on Raiwind Sui-e-Asal Road. The landowner, Malik Abdul Latif Amir, challenged the initial compensation of Rs. 50,000 per marla, leading the Senior Civil Judge (Referee Court) to enhance the compensation to Rs. 210,000 per marla, inclusive of additional damages. The Lahore High Court upheld this decision, prompting the Punjab Government and the landowner to approach the Supreme Court of Pakistan for further adjudication.
The Punjab Government’s appeal was dismissed as time-barred, as it failed to remove procedural deficiencies within the prescribed timeframe. The Court cited Asad Ali & Others Vs. The Bank of Punjab & Others (PLD 2020 SC 736) to reinforce that non-compliance with procedural rules results in dismissal.
The Supreme Court of Pakistan reaffirmed that compensation for compulsory land acquisition must be fair and reasonable, reflecting both market and potential value, rather than merely the purchase price between a willing buyer and seller.
Delays in issuing the award notification were also considered, with the Court acknowledging that any price escalation during the delay must be reflected in compensation calculations. Relying on Land Acquisition Collector Abbottabad & Others Vs. Muhammad Iqbal & Others (1992 SCMR 1245), the judgment clarified that unjustified delays increase compensation liability.
The Referee Court’s role in determining just compensation was upheld, with the Supreme Court of Pakistan concluding that the assessment of Rs. 210,000 per marla was based on strong evidentiary grounds.
The landowner’s cross-appeal seeking further enhancement was also dismissed due to a 19-day delay, reaffirming the importance of procedural adherence.
This ruling underscores the importance of timely appeals, comprehensive compensation assessments, and the need to factor in potential land value in compulsory acquisitions. The judgment is expected to impact future land acquisition cases, setting a precedent for fair market-based compensation while holding government authorities accountable for delays.
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