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Once Possession is Taken, the Acquired Land cannot be De-Notified by any Revenue Authority --- Lahore High Court, Lahore

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Once Possession is Taken, the Acquired Land cannot be De-Notified by any Revenue Authority --- Lahore High Court, Lahore

Islamabad 14-06-2024: In recent judgment pertaining to the acquisition of land for development of Housing Scheme by LDA, the Lahore High Court, Lahore held that once possession is taken, the acquired land cannot be de-notified by any revenue authority. The Honourable Bench presided over by Mr. Justice Ch. Muhammad Iqbal decided [WP No. 8177 of 2023] filed by Lahore Development Authority (LDA) against de-notification of the acquired land by Commissioner Lahore.

The Lahore Development Authority (LDA) has filed a constitutional petition challenging the validity of an order dated November 16, 2022, by the Commissioner of Lahore Division. This order accepted the application of respondent No.1 and de-notified the acquisition of 17 Kanal 02 Marla of land in Moza Bhobtian, Tehsil Raiwind, District Lahore, which was originally acquired in 2003 for the "LDA Avenue Housing Scheme." Respondent No.1 had applied for de-notification under Section 48 of the Land Acquisition Act, 1894, on May 18, 2022. The Commissioner's acceptance of this application prompted the LDA to file the current petition.

In the case concerning the LDA Avenue-I Housing Scheme in Moza Bhobtian, Tehsil Raiwind, Lahore, the LDA acquired land including Khasra Nos. 635 & 636 through notifications under Section 4 of the Land Acquisition Act, 1894 on 28.04.2003 and Sections 17(4) and 6 on 04.07.2003, followed by an award on 24.10.2003. Compensation was deposited, and possession was taken on 25.09.2003. The LDA subsequently allocated 27 plots on the acquired land to various allottees who paid for the land and development charges.

The controversy revolves around whether the Commissioner has the jurisdiction to de-acquire the land. According to Section 48(1) of the Land Acquisition Act, only the government, not the Commissioner, can withdraw from acquisition if possession has not been taken. Various legal precedents, including Muhammad Nawaz vs. Government of Punjab (2017 MLD 1719), and decisions by the Supreme Court of Pakistan, confirm that once possession is taken, the land cannot be de-notified by any revenue authority.

Further, any sale transactions after the notifications were issued are void. The initial owner lost the title upon acquisition, rendering subsequent sales to respondents like the one made in 2011 invalid. Notifications under Section 4 and 6 serve as public warnings against such transactions, and subsequent purchasers can only claim compensation, not challenge the acquisition. This principle is supported by multiple judgments from Pakistan and India, emphasizing that post-notification sales confer no right to challenge the acquisition process.

Finally the writ petition was allowed.