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Failed to consider Field Staff’s Valuation and Procedural Requirements --- Lahore High Court Partially Modified a Referee Court Decree in NHA Appeal

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Failed to consider Field Staff’s Valuation and Procedural Requirements --- Lahore High Court Partially Modified a Referee Court Decree in NHA Appeal

Islamabad 04-12-2024: In a significant decision, the Lahore High Court, in [RFA No. 54482 of 2023], partially modified a decree passed by the Senior Civil Judge, Gujranwala, concerning compensation awarded for land acquisition in the Lahore-Sialkot Motorway Project. The case involved the National Highway Authority (NHA) and private landowners, challenging the fairness of compensation under the Land Acquisition Act, 1894.

The NHA appealed against the decision of the Referee Court, which had substantially enhanced compensation for the acquired land. The respondents (landowners) had claimed inadequate compensation, arguing that it did not reflect the market value, potential value, or damages caused by acquisition proceedings. The Referee Court allowed their claim, awarding them significantly higher compensation rates.

The NHA contended that:

The compensation was exorbitant and not based on evidence.
The Referee Court ignored the procedural requirements under Rule 10(1)(iii)(c) of the Punjab Land Acquisition Rules, 1983.
Sections 23 and 24 of the Land Acquisition Act, 1894, were not properly adhered to.

The Lahore High Court noted the following:

The Referee Court failed to adequately consider objections raised by the NHA and the valuation report prepared by field staff.
Evidence presented by both parties indicated that the Referee Court’s assessment exceeded reasonable compensation limits.
The principles of market valuation and procedural compliance under Sections 23 and 24 of the Act were not observed.

The Appellate Court revised the compensation as follows:

Link Road Land: Rs.22,00,000 per acre.
Off-Road Land: Rs.20,00,000 per acre.
Kacha Road Land: Rs.18,00,000 per acre.
Severed Land: Rs.30,00,000 per acre.

The respondents were also entitled to 15% compulsory acquisition charges and 8% compound interest from the date of possession until payment of the revised compensation.