The Compensation of Acquired Land must be in accordance with Current Market Value of land to compensate the Land Owners --- Islamabad High Court, Islamabad
Islamabad 11-10-2024: The Islamabad High Court (IHC), in a landmark judgment, has set aside the Capital Development Authority’s (CDA) land acquisition award concerning the Ministry of Interior Employees Cooperative Housing Society (MIECHS), citing an inordinate delay in the payment of compensation that rendered the original award unjust and ineffective.
The ruling, delivered by Mr. Justice Miangul Hassan Aurangzeb, addresses two Writ Petitions, [W.P. No. 2450/2012] and [W.P. No. 1970/2020], filed by MIECHS. The petitions highlighted CDA’s failure to pay compensation for 682 kanals and 15 marlas of land acquired in Revenue Estate Budhana Kalan, District Islamabad, since the award was announced on January 15, 2009.
The judgment reveals that MIECHS initially filed the Writ Petitions seeking either the completion of the land acquisition process and payment of compensation, or an alternative arrangement under CDA’s Land Sharing Policy. Despite multiple requests over several years, CDA did not make full compensation payments, citing disputes over land ownership and the availability of funds.
In its defense, CDA argued that compensation was paid for a portion of the land but admitted that significant amounts remained unpaid due to unresolved issues regarding the total quantum of land acquired. The Court noted that while CDA claimed to be in the process of arranging funds, no significant efforts were made to resolve the issue for over 15 years.
Mr. Justice Miangul Hassan Aurangzeb scrutinized the provisions of the Capital Development Authority Ordinance, 1960, and the Land Acquisition Regulations, 1961, which govern the acquisition of land and payment of compensation. The Court emphasized that under Section 32 of the CDA Ordinance, ownership of the acquired land vests in CDA immediately upon the issuance of an award, not upon taking possession. Therefore, CDA’s argument that compensation would be paid after possession is handed over was deemed baseless and contrary to the law.
The Court also underscored that the delay in payment violated the principle of fair and just compensation, as defined in various legal precedents, including Allah Ditta Vs. Province of Punjab (PLD 1997 Lahore 499) and Col. Bashir Hussain Vs. Land Acquisition Collector (PLD 1970 Lahore 321). These rulings establish that compensation must be reflective of the current market value to enable the affected owner to purchase alternate land of similar size and value.
The Court concluded that CDA’s failure to compensate MIECHS for over 15 years stripped the award of any semblance of fairness, turning it into a case of expropriation rather than lawful acquisition. Consequently, the award dated January 15, 2009, was set aside, with the Court granting CDA the liberty to initiate a fresh process for determining the present market value of MIECHS’s land, provided the compensation is paid promptly.
The ruling directs CDA to bear the costs incurred by MIECHS and reaffirms that the judgment will operate in personam, applying only to the parties involved. This decision is expected to set a significant precedent for land acquisition cases, emphasizing the need for timely and adequate compensation in accordance with the law.
This case underscores the importance of adhering to statutory requirements and protecting landowners’ rights, ensuring that public authorities do not exploit procedural loopholes to delay or evade payment of fair compensation.
The judgment serves as a reminder that governmental bodies must exercise their eminent domain powers responsibly, upholding both statutory obligations and constitutional guarantees related to the right to property.
Powered by Froala Editor
