Land acquisition refers to the process by which the government or private entities acquire land, often for public infrastructure projects, urbanization, or industrial development. It involves legally transferring rights, interests, and ownership of land from its private owners to the acquiring party, usually through negotiations or legal procedures.How to sale land to Govt ko zameen bechna.Land acquisition process and rates in Pakistan (Supreme Court decisions about the topic)

Land acquisition meaning in Urdu 

Land acquisition refers to the process by which the government or private entities acquire land, often for public infrastructure projects, urbanization, or industrial development. It involves legally transferring rights, interests, and ownership of land from its private owners to the acquiring party, usually through negotiations or legal procedures.

پاکستان لینڈ کے حصول سے مراد وہ عمل ہے جس کے ذریعے سرکاری یا نجی ادارے زمین حاصل کرتے ہیں، اکثر عوامی بنیادی ڈھانچے کے منصوبوں، شہری کاری یا صنعتی ترقی کے لیے۔ اس میں قانونی طور پر زمین کے حقوق، مفادات اور ملکیت کو اس کے نجی مالکان سے حاصل کرنے والے فریق کو منتقل کرنا شامل ہے، عام طور پر بات چیت یا قانونی طریقہ کار کے ذریعے۔

Land acquisition process in Pakistan 

In Pakistan, the land acquisition process involves several steps, typically governed by the Land Acquisition Act of 1894. Here is a general overview:

1. **Notification of Intention**: The government issues a notification stating its intention to acquire land for a specific public purpose. This is usually published in official gazettes and local newspapers.

2. **Social Impact Assessment (SIA)**: In some cases, a Social Impact Assessment is conducted to evaluate the potential effects of the acquisition on the affected community.

3. **Declaration of Land Acquisition**: After considering objections and conducting necessary assessments, the government issues a declaration notifying the acquisition of the land.

4. **Notice to Landowners and Interested Parties**: Individual notices are served to landowners and other interested parties, informing them of the intended acquisition and the compensation process.

5. **Objections and Inquiries**: Landowners can file objections within a specified period. An inquiry is conducted to address these objections, and compensation is determined based on the market value of the land.

6. **Award of Compensation**: Once objections are settled, the government awards compensation to the affected landowners. Compensation typically includes the market value of the land, rehabilitation and resettlement costs, and other applicable benefits.

7. **Possession of Land**: After compensation is paid, the government takes possession of the land for the designated public purpose.

8. **Rehabilitation and Resettlement**: In cases where displacement occurs, rehabilitation and resettlement measures may be implemented to support affected individuals or communities.

پاکستان میں، زمین کے حصول کے عمل میں کئی مراحل شامل ہوتے ہیں، جو عام طور پر 1894 کے لینڈ ایکوزیشن ایکٹ کے تحت چلتے ہیں۔ یہاں ایک عمومی جائزہ ہے: 1. **نیت کی اطلاع**: حکومت ایک نوٹیفکیشن جاری کرتی ہے جس میں ایک مخصوص عوامی مقصد کے لیے زمین حاصل کرنے کا ارادہ بتایا جاتا ہے۔ یہ عام طور پر سرکاری گزٹوں اور مقامی اخبارات میں شائع ہوتا ہے۔ 2. **سوشل امپیکٹ اسیسمنٹ (SIA): بعض صورتوں میں، متاثرہ کمیونٹی پر حصول کے ممکنہ اثرات کا جائزہ لینے کے لیے سماجی اثرات کا جائزہ لیا جاتا ہے۔ 3. **زمین کے حصول کا اعلان**: اعتراضات پر غور کرنے اور ضروری جائزوں کے انعقاد کے بعد، حکومت ایک اعلامیہ جاری کرتی ہے جس میں اراضی کے حصول کی اطلاع ہوتی ہے۔ 4. **زمین کے مالکان اور دلچسپی رکھنے والی جماعتوں کو نوٹس**: زمین کے مالکان اور دیگر دلچسپی رکھنے والی جماعتوں کو انفرادی نوٹس بھیجے جاتے ہیں، جس میں انہیں مطلوبہ حصول اور معاوضے کے عمل سے آگاہ کیا جاتا ہے۔ 5. **اعتراضات اور استفسارات**: زمین کے مالکان ایک مخصوص مدت کے اندر اعتراضات دائر کر سکتے ہیں۔ ان اعتراضات کو دور کرنے کے لیے ایک انکوائری کی جاتی ہے، اور معاوضے کا تعین زمین کی مارکیٹ ویلیو کی بنیاد پر کیا جاتا ہے۔ 6. **معاوضہ کا ایوارڈ**: اعتراضات طے ہونے کے بعد، حکومت متاثرہ زمینداروں کو معاوضہ دے دیتی ہے۔ معاوضے میں عام طور پر زمین کی مارکیٹ ویلیو، بحالی اور آباد کاری کے اخراجات اور دیگر قابل اطلاق فوائد شامل ہوتے ہیں۔ 7. **زمین کا قبضہ**: معاوضے کی ادائیگی کے بعد، حکومت نامزد عوامی مقصد کے لیے زمین پر قبضہ کر لیتی ہے۔ 8. **بحالی اور دوبارہ آبادکاری**: ان صورتوں میں جہاں نقل مکانی ہوتی ہے، متاثرہ افراد یا کمیونٹیز کی مدد کے لیے بحالی اور آباد کاری کے اقدامات نافذ کیے جا سکتے ہیں۔ ا 

How to sale land to government | land acquisition process.

Pakistan main bht se logon ki zameen makan, plot, ya koi dosri property govt ke kisi project main required hoti ha.

Or aksar dekha  gia ke govt one poone damo property kharid kar logo se khali karwa leti ha.

Qanoon ju land ko khareedne ke liye use hota  ha Land acquisition act 1894.

Iss qanoon main  poora process bataya gia hai ke Notice se le kar Land ko hasil karne tak ka process.

Agar Government aap ki property ka poora rate nahi deti tu aap competent court main dawa kar sakte hain

Yad rahe ke dawa raqam wasool karne se pehle hu ga 

Zail main Supreme court of Pakistan ki Landmark judgement di gai topic per

Jiss main mukhtalaf judgements ka hawala de kar topic ko wazia kia gia ha.

If you have any question call or Whatsapp+92-324-4010279

Case Laws on Land acquisition act

Judgement 

,

IN THE SUPREME COURT OF PAKISTAN

(Appellate Jurisdiction)

PRESENT:

Mr. Justice Umar Ata Bandial, CJ

Mr. Justice Syed Mansoor Ali Shah

Mrs. Justice Ayesha A. Malik

CIVIL APPEALS NO.2150 TO 2263 OF 2019 AND CIVIL 

MISC. APPLICATIONS NO.5284 TO 5300 OF 2020

(Against the judgment dated 18.06.2019, passed by Lahore High 

Court, Rawalpindi Bench, Rawalpindi in Regular First Appeals

No.11, 12, 13, 100, 101, 102, 103, 104, 107, 12, 13, 48 to 57, 73 to 

78, 83 to 86, 99, 236, 248, 265, 213 to 216 of 2012, 266 to 311, 

313, 315, 314, 317, 316, 318 to 323, 331, 324 to 330, 332 to 334 of 

2014, 10 of 2012 and 312 of 2014, respectively)

C.A.2150/2019

Federal Government of Pakistan through 

Ministry of

Defence Rawalpindi and 

another Vs. Mst. Zakia Begum and others

C.A.2151/2019

Mst. Zakia Begum and another Vs.

Military Estate Officer

Hazara Circle 

Abbotabad and others

C.A.2152/2019

Mst. Zakia Begum and another Vs. 

Military Estate Officer Hazara Circle 

Abbotabad and others

C.A.2153/2019

Mst. Rafia Begum and another Vs. 

Military Estate Officer

Hazara Circle 

Abbotabad and others

C.A.2154/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad and 

another Vs. Mohammad Ashraf and 

others

C.A.2155/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Zumard Khan and others

C.A.2156/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Ali Bahadur (deceased) 

through LRs and others

C.A.2157/2019

Military Estates Officer (MEO) Hazara 

Circle, Abbottabad and another Vs. Taj 

Muhammad Khan (deceased) through LRs

CAs No.2150/2019, etc.

2

C.A.2158/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad and 

another 

Vs. Taj Mehmood Khan 

(deceased) through LRs and others

C.A.2159/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Fazal ur Rehman and others

C.A.2160/2019

Federal Government of Pakistan through 

Ministry of Defence Rawalpindi and 

another Vs. Mst. Zakia Begum and others

C.A.2161/2019

Federal Government of Pakistan through 

Secretary of Defence Rawalpindi and 

another Vs. Mst. Rafia Begum and others

C.A.2162/2019

Federation of Pakistan through Secretary 

Ministry of Defence

Rawalpindi

and 

another Vs.

Mohammad Ashraf and 

others

C.A.2163/2019

Federation of Pakistan through Secretary 

Ministry of Defence

Rawalpindi

and 

another Vs. Akram Khan and others

C.A.2164/2019

Federation of Pakistan through Secretary 

of Defence Rawalpindi and another Vs. 

Khurshid Khan and others

C.A.2165/2019

Federation of Pakistan through Secretary 

Ministry of Defence Rawalpindi and 

another Vs. Muzaffar Khan (deceased) 

through LRs. and others

C.A.2166/2019

Military Estates Officer, Hazara Circle, 

Abbottabad and others Vs. Aslam Khan 

(deceased) through LRs. and others

C.A.2167/2019

Federal Government of Pakistan through 

Secretary Ministry of Defence Islamabad

and another Vs. Umer Hayat Khan and 

others

C.A.2168/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Amanat Khan and others

C.A.2169/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Waqar Ahmed Khan and 

CAs No.2150/2019, etc.

3

C.A.2170/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Azmat Ali Khan and others

C.A.2171/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Mst. Inayat Bibi and others

C.A.2172/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Khizar Hayat Khan and 

others

C.A.2173/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Barkat Ali Khan and others

C.A.2174/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Sardar Ali Khan and others

C.A.2175/2019

Federal Government of Pakistan through 

Secretary Ministry of Defence Islamabad

and another Vs. Mst. Shamshad Begum 

(deceased) through LRs. and others

C.A.2176/2019

Federal Government of Pakistan through 

Secretary Ministry of Defence Islamabad

and another Vs. Sadaaqat Ali Khan and 

others

C.A.2177/2019

Federal Government of Pakistan through 

Secretary Ministry of Defence Islamabad 

and another Vs. Sher Afzal Khan and 

others

C.A.2178/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Masood Khan (deceased) 

through LRs and others

C.A.2179/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and

another Vs. Sardar Afsar Khan and 

others

C.A.2180/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Khalid Mehmood and others

C.A.2181/2019

Federal Government of Pakistan through 

Secretary Ministry of Defence Islamabad

and another Vs. Mst. Sajida Bgum and

CAs No.2150/2019, etc.

4

others

C.A.2182/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Mohammad Ayub and others

C.A.2183/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Rab Nawaz and others

C.A.2184/2019

Federation of Pakistan through Secretary 

of Defence Islamabad and another Vs. 

Mst. Hafeezan Sultan (deceased) through

LRs. and others

C.A.2185/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another 

Vs. Mst. Naeema Zayad 

(deceased) through L.Rs and others

C.A.2186/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Chan Nawaz and others

C.A.2187/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and

another Vs. Mir Afzal Khan (deceased) 

through LRs. and others

C.A.2188/2019

Government 

of Pakistan

through 

Secretary Ministry of Defence Islamabad

and another Vs. Abdul Khaliq and others

C.A.2189/2019

Federation of Pakistan through Ministry 

of Defence Rawalpindi and another Vs. 

Mst. Zakia Begum and others

C.A.2190/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another 

Vs. 

Ghulam Mohammad 

(deceased) through LRs. and others

C.A.2191/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Lal Khan and others

C.A.2192/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another 

Vs. Mst. Mumtaz Begum 

(deceased) through L.Rs and others

C.A.2193/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

CAs No.2150/2019, etc.

5

another Vs. Iftikhar Ahmed Khan and

others

C.A.2194/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Mohammad Ashraf and

others

C.A.2195/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Goher Rehman and others

C.A.2196/2019

Federation of Pakistan through Secretary 

Ministry of Defence Rawalpindi and 

another Vs. Ghulam Zakri and others

C.A.2197/2019

Federation of Pakistan through Secretary 

Ministry of Defence

Rawalpindi

and 

another Vs. Abdul Khaliq and others

C.A.2198/2019

Federation of Pakistan through Secretary 

of Defence Islamabad and another Vs. 

Haji Fazal Dad and others

C.A.2199/2019

Federation of Pakistan through Secretary 

Ministry of Defence Islamabad

and 

another Vs. Amir Afzal and others

C.A.2200/2019

Federation of Pakistan through Secretary 

of Defence Islamabad and another Vs. 

Khalid Mehmood and others

C.A.2201/2019

Federation of Pakistan through Ministry 

of Defence Islamabad and another Vs. 

Muzaffar Khan and others

C.A.2202/2019

Federation of Pakistan through Secretary 

Ministry of Defence

Rawalpindi

and 

another Vs. Haji Ahmed and others

C.A.2203/2019

Federation of Pakistan through Secretary 

of Defence Islamabad and another Vs. 

Fazal Dad and others

C.A.2204/2019

Military Estates Officer (MEO) Hazara 

Circle, Abbottabad Vs. Fazal Dad and

others

C.A.2205/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Muhammad Afzal and others

C.A.2206/2019

Federation of Pakistan through Ministry

CAs No.2150/2019, etc.

6

of Defence, Rawalpindi and another Vs. 

Muhammad Nawaz and others

C.A.2207/2019

Federal Govt. of Pakistan through 

Ministry of Defence,

Rawalpindi and 

another Vs. Mst. Shamshad Begum and

others

C.A.2208/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Burkat Ali Khan and others

C.A.2209/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Ghulab Shah and others

C.A.2210/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Lal Khan and others

C.A.2211/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Sher Afzal and others

C.A.2212/2019

Military Estates Officer (MEO) Hazara 

Circle, Abbottabad Vs. Zakia Begum and

others

C.A.2213/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Aslam Khan and others

C.A.2214/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mohammad Ashraf and others

C.A.2215/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mst. Rafia Begum and others

C.A.2216/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mst. Mumtaz Begum and others

C.A.2217/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Sardar Afsar Khan and others

C.A.2218/2019

Federation of Pakistan through Ministry 

of Defence and another Vs. Umer Hayat 

Khan and others

C.A.2219/2019

Military Estates Officer (MEO) Hazara 

CAs No.2150/2019, etc.

7

Circle, Abbottabad Vs. Akram Khan and

others

C.A.2220/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Azmat Ali Khan and others

C.A.2221/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Masood Khan and others

C.A.2222/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Sardar Ali Khan and others

C.A.2223/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Ghulam Mohammad and others

C.A.2224/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Raja Muhammad and others

C.A.2225/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mushtaq Ahmed Khan and others

C.A.2226/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Waqar Ahmed and others

C.A.2227/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Iftikhar Ahmed Khan and others

C.A.2228/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Naeema Zaid and others

C.A.2229/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Ali Bahadur and others

C.A.2230/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mst. Hafizan Sultan and others

C.A.2231/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mohammad Saddique and others

C.A.2232/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs

CAs No.2150/2019, etc.

8

Khayzer Hayat and others

C.A.2233/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Saadat Khan Ali and others

C.A.2234/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Amir Afzal and others

C.A.2235/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Samundar Khan and others

C.A.2236/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Khurshid Khan and others

C.A.2237/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Sher Bahadur and others

C.A.2238/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Meer Afzal and others

C.A.2239/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Taj Mohammad and others

C.A.2240/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Amanat Khan and others

C.A.2241/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Ghulam Mohammad and others

C.A.2242/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mohammad Ayyub and others

C.A.2243/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Taj Mohammad and others

C.A.2244/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs.

Zamurrad Khan and others

C.A.2245/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mst. Hafizan Sultana and others

CAs No.2150/2019, etc.

9

C.A.2246/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Masood Khan and others

C.A.2247/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Amir Afzal and others

C.A.2248/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Rab Nawaz and others

C.A.2249/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mst. Sajida Begum and others

C.A.2250/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Chan Nawaz and others

C.A.2251/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Fazal Ahmed and others

C.A.2252/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mir Afzal and others

C.A.2253/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Sadaqat Ali Khan and others

C.A.2254/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Fazal ur Rehman and others

C.A.2255/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Ali Haider and others

C.A.2256/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mst. Maskeena Jan and others

C.A.2257/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Akbar Jan and others

C.A.2258/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mohammad Ali and others

CAs No.2150/2019, etc.

10

C.A.2259/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mst. Anwar Jan and others

C.A.2260/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Munawar Khan (deceased) through L.Rs 

and others

C.A.2261/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Mst. Inayat Bibi and others

C.A.2262/2019

Military Estates Officer, Hazara Circle, 

Abbottabad Vs. Manzoor Alam and others

C.A.2263/2019

Federation of Pakistan through Ministry 

of Defence, Rawalpindi and another Vs. 

Hamida Manzoor and others

C.M.A.5284/2020

Federation of Pakistan, etc. 

Vs. 

Mohammad Ashraf, etc.

C.M.A.5285/2020

Federation of Pakistan, etc. Vs. Zumard 

Khan, etc.

C.M.A.5286/2020

Federation of Pakistan, etc.

Vs. Taj 

Muhammad Khan, etc.

C.M.A.5287/2020

Federation of Pakistan, etc.

Vs. 

Muhammad Ashraf, etc.

C.M.A.5288/2020

Federation of Pakistan, etc. Vs. Muzaffar 

Khan, etc.

C.M.A.5289/2020

Federation of Pakistan etc. Vs. Azmat Ali 

Khan etc. 

C.M.A.5290/2020

Federation of Pakistan etc. Vs. Mst. 

Inayat Bibi etc. 

C.M.A.5291/2020

Federation of Pakistan etc. Vs. Khizar 

Hayat Khan etc. 

C.M.A.5292/2020

Federation of Pakistan etc. Vs. Barkat Ali 

Khan etc. 

C.M.A.5293/2020

Federation of Pakistan etc. Vs. Masood 

Khan etc. 

C.M.A.5294/2020

Federation of Pakistan etc. Vs. Sardar 

Afsar Khan etc

CAs No.2150/2019, etc.

11

C.M.A.5295/2020

Federation of Pakistan etc. Vs. Mst. 

Hafeezan Sultan etc. 

C.M.A.5296/2020

Federation of Pakistan etc. Vs. Mst. 

Naeema Zayad etc. 

C.M.A.5297/2020

Federation of Pakistan etc. Vs. Lal Khan 

C.M.A.5298/2020

Federation of Pakistan etc. Vs. Mst. 

Mumtaz Begum etc. 

C.M.A.5299/2020

Military Estates Officer Abbottabad Vs. 

Fazal Dad etc. 

C.M.A.5300/2020

Federation of Pakistan etc. Vs. Lal Khan 

etc. 

For the Appellants

(Federation)

: Sajid Ilyas Bhatti, 

Additional Attorney General for Pakistan

M. Zaheer (MEO), Abbottabad

(in CAs No.2150, 2154-2263/2019) and 

(CMAs No.5284-5300/2020)

For the Appellants

(Private Parties)

: S.M. Ayub Shah Bokhari, ASC

Ch. Akhtar Ali AOR 

(in CAs No.2151-2153/2019)

For Respondents

: Mr. M. Nawaz Khan, ASC 

(in CA No.2150/2019)

Sh. Zamir Hussain, Sr. ASC 

(in CAs No.2154, 2155, 2158, 2162, 

2164-2168, 2169-2172, 2174, 2177, 

2178, 2180, 2182-2187, 2190, 2192

and 2193 of 2019)

Nemo

(in CAs.5284 to 5300 of 2020)

For POF

: Mr. Mustafa Ramday, ASC

Mr. Rashid Hafeez, ASC

Jawad Mehboob,

Manager Legal, POF assisted by 

Ms. Zoe Khan, Advocate and 

Mr. Akbar Khan, Advocate 

(in CAs.2151 to 2263 of 2019)

Nemo

(in remaining cases)

For Government of 

Punjab 

: Mr. Qasim Chohan, 

Additional Advocate General, Punjab 

Naeemullah, Tehsildar, Hasanabdal

CAs No.2150/2019, etc.

12

Date of Hearing

: 24.03.2022

JUDGMENT

AYESHA A. MALIK, J.- These Civil Appeals are 

directed against judgment dated 18.06.2019, passed by the 

Lahore High Court, Rawalpindi Bench, Rawalpindi (the High 

Court), whereby the Regular First Appeals, filed by the 

landowners were allowed and compensation was enhanced to

the rate of Rs.30,000/- per kanal for the purposes of 

acquisition of land, along with 15% necessary acquisition 

charges as well as compound interest, whereas the Regular 

First Appeals, filed by the Government, were dismissed.

2.

The basic facts are that land measuring 29199 

Kanals 18 Marlas was acquired from three villages in District 

Attock such that land measuring 27510 Kanals 13 Marlas 

from Burhan, 1630 Kanals 2 Marlas from Jallo and 37 Kanal 

12 Marla from Islamgarh for the purposes of the extension of 

the Pakistan Ordinance Factory

(POF). In this regard 

Notification under Section 4 of the Land Acquisition Act, 1894 

(Act) was issued on 01.07.1990 and Corrigendum to the said 

Notification was issued on 19.12.1990. Notices under Section 

9 of the Act were issued on 26.09.1992, calling for objections 

from the land owners. Notice under Sections 17(4) and 6 of the 

Act were also issued on 24.08.1991. The cost of the Award was 

worked out by the Revenue Department as Rs.78,057,458.73 

and ultimately approved and deposited by the POF on 

24.07.1991. The Award was announced on 18.08.1992. The 

CAs No.2150/2019, etc.

13

details of the categories of land and compensation per Kanal 

worked out by the Land Acquisition Collector, Attock is 

reproduced below: 

Name of 

village

Kind of 

land

Area

K --- M

Rate per 

kanal

Total cost

Burhan

Chahi Aabi 

Selab

1-12

13902.00

22,243.00

Maira

Rakkar Lass

10176-14

3981.00

4,05,17,513.38

Banjar 

Qadeem

3395-11

1990.70

67,59,521.38

Ghair 

Mumkin

13936-16

995.35

1,38,71,993.88

Total

27510-13

6,11,71,271.84

Jallo

Chahi Aabi 

Selab

210-04

13,902.00

29,22,200.40

Maira Rakkar

Lass

672-14

3,981.40

26,78,287.78

Banjar 

Qadeem

211-07

1,990.70

4,21,729.79

Ghair

Mumkin

535-07

995.35

5,32,860.62

Total

1630-02

65,55,078.59

Islamgarh

Maira Rakkar

Lass

37-12

3,981.40

1,49,700.64

Total

37-12

3,981.40

1,49,700.64

Total

29,178-07

Rs.6,78,76,051.07

15% compulsory acquisition charges

Rs.1,01,81,407.66

Total:

Rs.7,80,57,458.73

8% compound interest from 17.9.1991 to 31.7.1992

(10 months and 15 days)

Rs.54,64,022.11

Total:

Rs.8,35,21,480.84

Cost as explained in para 28

55,66,366.00

Cost as explained in para 29

13,15,709.00

Cost as explained in para 30

22,60,000.00

Cost as explained in para 31

1,33,200.00

Cost as explained in para 32

77,115.00

Cost as explained in para 33

86,700.00

Grand Total

Rs.9,29,60,570.84

A Supplementary Award was issued on 20.3.1993 with respect 

to trees and structure on the land and the total acquisition 

cost awarded by the Land Acquisition Collector for the same 

was worked out as Rs.97,322,991.84. 

CAs No.2150/2019, etc.

14

3.

The landowners were aggrieved by the 

compensation awarded, hence, References under Section 18 of 

the Act were filed wherein the basic grievance was that the rate 

of compensation fixed by the Assistant Commissioner/Land 

Acquisition Collector Attock was inadequate and against the 

spirit of the Act. The cases were heard and decided on 

13.05.1993 by the Senior Civil Judge, Attock (Referee Court),

wherein compensation was awarded in the following terms:-

“Petitioners shall be entitled to the 

compensation for their Nal Chahi land at the 

rate of Rs.32938/- per kanal, for maira land 

at the rate of Rs.8095/- per kanal, for 

Banjra Rs.8480/- per kanal and Ghair 

Mumken Rs.6439/- per Kanal. They shall 

also be entitled to 15% compulsory 

acquisition charges and 8% compound 

interest (already granted by the L.A.C.)”

Aggrieved by the enhanced compensation, the Province of 

Punjab preferred R.F.A. Nos.355, 356, 360 to 514 of 1993 

which were allowed and the matter was remanded to the 

Referee Court vide consolidated judgment dated 03.06.1999.

Para 7 whereof being relevant, is reproduced below:

“As we have come to the conclusion that the 

decision of the learned Senior Civil Judge, 

Attock is based only on the statement of 

Syed Masood Ahmad Shah which as 

aforesaid, was not authorized to make the

statement of the nature which he did, we are 

of the view that the ends of justice shall be 

best served to accept these appeals and to 

remand the references back to the learned 

Senior Civil Judge with the direction that he 

shall decide the same within a period of 

three months on the basis of the evidence on 

the record brought by the parties.”

After remand, the learned Referee Court rejected the 

references, vide judgment dated 12.12.2000, relevant portion 

whereof, is reproduced below:

CAs No.2150/2019, etc.

15

“The reasoning given by the Land 

Acquisition Collector justifies the rate fixed 

by him of the land acquired whereas the 

petitioners by their evidence have not proved 

beyond doubt that the acquired land was 

worth Rs.50,000/-/Rs.60,000/- per kanal 

before one year of Notification u/s 4 of Land 

Acquisition Act. The land was acquired for a 

National Project and our country is facing a 

financial crunch especially the acquiring 

departments have no money to pay even for 

necessary expenditures. In view of all this 

all the issues are decided against the 

Petitioners and in favour of Respondents.”

Dissatisfied with the above findings, the landowners 

approached the High Court through different Regular First 

Appeals, which were once again allowed and the matter was 

remanded to the Referee Court vide judgment dated 

03.06.2009, in Regular First Appeals No.125, 116 of 2001, 07 

to 32, 46, 47, 57, 59 to 62, 96, 97, 122 and 189 of 2003, 158, 

174 and 192 of 2004 and 12 & 13 of 2005, para 6 whereof 

being relevant is reproduced below:

“For what has been discussed above, we 

allow these appeals and remand the 

proceedings to the Referee Court again for 

decision afresh, after taking into 

consideration the evidence available on 

record, especially the exhibit referred to and 

mentioned in the preceding paragraphs and 

the precedents cited above in detail, giving 

cogent reasons in this respect. The exercise 

be preferably completed within a period of 

two months from the date the parties appear 

before the concerned Court. The parties to 

appear before the District Judge, Attock, on 

22.06.2009, who will entrust the matter to a 

Court of competent jurisdiction for 

adjudication as observed above.”

The Referee Court finally decided the References vide judgment 

dated 31.10.2011, wherein compensation was awarded in the 

following terms:

“For Chahi, Abi Selab. 

Rs.18902/- per kanal

CAs No.2150/2019, etc.

16

For Maira, Rakarand Lass Rs.7981.40 per kanal

For Bangar Qadeem

Rs.3990.70/- per kanal

For Ghair Mumkin

Rs.1995.35- per kanal”

This judgment was challenged before the High Court in RFA 

No.11 of 2012 by the landowners for enhancement of the 

compensation and the Government also challenged it for 

reduction of the compensation. The High Court considered the 

matter and concluded that the value of the land was calculated 

on the basis of land classification which is incorrect, further 

that the potential value of the land has not been factored in. 

Hence, the Court modified the compensation such that it was 

fixed at Rs.30,000/- per kanal for the total land acquired. 

4.

Only two

landowners are aggrieved by the 

impugned judgment to the extent that the value fixed is 

incorrect and should be enhanced to Rs.50,000/- per kanal. 

The Appellant, Federation of Pakistan and the Military Estate 

Officer (MEO) Hazara Circle, Abbottabad are aggrieved by the 

value fixed at Rs.30,000/- per kanal. They argue that there is 

no basis for fixing compensation at one rate being Rs.30,000/-

as there is variation in the landscape and the fact that there 

are roads, a railway line, commercial and residential areas in 

some pockets, does not mean that the benefit of the same 

should be attributed to the whole area. 

5.

The learned High Court while considering the case 

of the Federation, relied on the principles of potential value as 

laid down by this Court in the case reported as Malik Aman 

and others v. Land Acquisition Collector and others (PLD 1988 

SC 32) and Land Acquisition Collector, GSC and another v. Mst

CAs No.2150/2019, etc.

17

Surraya Mehmood Jan (2015 SCMR 28) concluded that the 

classifications made by the Land Acquisition Collector are not 

correct and that the market value of the entire land being 

acquired should be considered. The Court also concluded that 

the potential value for the purposes of the extension project of 

the POF meant that the value for the land be it Chahi Aabi 

Selab, Maira Rakkar Lass, Banjar Qadeem and Ghair Mumkin

shall be the same which the Court fixed at Rs.30,000/- per 

kanal. 

6.

Counsel for the Appellants being the Federation 

and for the POF and MEO argue that the acquired land falls in 

different categories such as Chahi Aabi Selab, Maira Rakkar 

Lass, Banjar Qadeem and Ghair Mumkin and have to be valued 

accordingly. Consequently, the rates for compensation will be 

determined on the basis of the revenue record and the given 

classifications. They also argued that treating the acquired 

land as one area, for the purposes of compensation is against 

the spirit of the Act as market value and potential value do not 

suggest that the land has to be valued as one large area, rather

its future use and value of similar land in adjoining areas are 

relevant. Hence, they argued that the evidence produced shows 

the variation in the value of the land based on the landscape 

and compensation must be accordingly awarded. Their case is 

that the Court cannot treat the entire land as one large area of 

land for the purposes of compensation and they rely on various 

maps to demonstrate the variations in the landscape and the 

CAs No.2150/2019, etc.

18

availability of transport, infrastructure and other amenities in 

different parts of the area acquired.

7.

The relevant law on the issue is Sections 23 and 24 

of the Act read with Rule 10(1)(iii) of the Punjab Land 

Acquisition Rules, 1983 (Rules

of 1983), which are

reproduced hereunder:

23. 

Matters to be considered in 

determining compensation.–

(1) In 

determining the amount of compensation to 

be awarded for land acquired under this Act, 

the Court shall take into consideration–

firstly, the market-value of the land at 

the date of the publication of the notification 

under section 4, sub-section (1) 

Explanation.–For the purpose of 

determining the market-value, the Court shall 

take into account transfers of land similarly 

situated and in similar use. The potential 

value of the land to be acquired if put to a 

different use shall only be taken into 

consideration if it is proved that land 

similarly situated and previously in similar 

use has, before the date of the notification 

under sub-section (1) of section 4, been 

transferred with a view to being put to the 

use relied upon as affecting the potential 

value of the land to be acquired:

Provided that–

(i)

if the market-value has been increased 

in consequence of the land being put to 

a use which is unlawful or contrary to 

public policy, that use shall be 

disregarded and the market-value 

shall be deemed to be the market-value 

of the land if it were put to ordinary 

use; and

(ii)

(ii) if the market-value of any building 

has been increased in consequence of 

the building being so overcrowded as 

to be dangerous to the health of the 

inmates, such overcrowding shall be 

disregarded and the market-value 

shall be deemed to be the market-value 

of the building if occupied by such 

number of persons only as can be 

As No.2150/2019, etc.

19

accommodated in it without risk of 

danger to health from overcrowding. 

secondly, the damage sustained by the 

person interested, by reason of the taking of 

any standing crops or trees which may be on 

the land at the time of the Collector's taking 

possession thereof; 

thirdly, the damage (if any) sustained by the 

person interested, at the time of the 

Collector's taking possession of the land, by 

reason of severing such land from his other 

land; 

fourthly, the damage (if any) sustained by 

the person interested, at the time of the 

Collector's taking possession of the land, by 

reason of the acquisition injuriously affecting 

his other property, moveable or immoveable, 

in any other manner, or his earnings; 

fifthly, if, in consequence of the acquisition of 

the land by the Collector, the person 

interested is compelled to change his 

residence or place of business, the 

reasonable expenses (if any) incidental to

such change; and 

sixthly, the damage (if any) bona fide 

resulting from diminution of the profits of the 

land between the time of the publication of 

the declaration under section 6 and the time 

of the Collector's taking possession of the 

land. 

(2) In addition to the market-value of the land 

as above provided, the Court shall award a 

sum of fifteen per centum on such marketvalue, in consideration of the compulsory 

nature of the acquisition, if the acquisition 

has been made for a public purpose and a 

sum of twenty-five per centum on such 

market-value if the acquisition has been 

made for a Company.

24. Matters to be neglected in 

determining compensation.– But the Court 

shall not take into consideration,–

first, the degree of urgency which has led to 

the acquisition; 

secondly, any disinclination of the person 

interested to part with the land acquired; 

As No.2150/2019, etc.

20

thirdly, any damage sustained by him which, 

if caused by a private person, would not 

render such person liable to a suit; 

fourthly, any damage which is likely to be 

caused to the land acquired, after the date of 

the publication of the declaration under 

section 6, by or in consequence of the use to 

which it will be put; 

fifthly, any increase to the value of the land 

acquired likely to accrue from the use to 

which it will be put when acquired; 

sixthly, any increase to the value of the other 

land of the person interested likely to accrue 

from the use to which the land acquired will 

be put; or,

seventhly, any outlay or improvements on, or 

disposal of, the land acquired, commenced, 

made or effected without the sanction of the 

Collector after the date of the publication of 

the 1[notification under section 4, sub-section 

(1).

Rule 10(1)(iii)(a)(b)(c)

(1)

The Commissioner of the Division while 

issuing a Notification under section 5 or 17 of 

the Act shall ensure that:-

(iii)

The Collector of the district has 

carefully and prudently calculated the 

estimated price of the land sought to be 

acquired keeping in view:-

(a) the factors laid down in sections 

23 and 24 of the Act; 

(b) the classification of the land to be 

acquired and its location; and 

(c) the average market price of 

similar kind of land similarly 

located, on the basis of the price 

prevalent during the period of 

twelve months preceding the date 

of publication of Notification under 

section 4;” 

8.

Section 23

of the Act

requires that while 

determining compensation for land acquired, market value of 

the land must be considered and that market value means the 

CAs No.2150/2019, etc.

21

value of similar land located in the vicinity and put to the same 

use. Hence, the key factors for determining market value are 

land similarly situated and in similar use. Potential value also 

has to be factored in where the land is put to different usage, 

so when agricultural land

is acquired for commercial,

industrial or residential purposes, the Act requires that along 

with the market value, potential value be considered. This is 

important because market value per se does not factor in the 

value that can be attributed based on the capacity or 

potentiality of the land, meaning the value based on the use it 

is reasonably capable of being put to in the future. It means 

assessing that if the land were fully developed or used at its 

fullest potential, what would its value be. So Rule 10(1)(iii)(a)

(b)(c) of the Rules requires the Collector to consider all factors 

in Sections 23 and 24 of the Act, the classification of the land 

acquired, its market price over the last twelve months and 

potential value. 

9.

This Court, while interpreting Section 23 of the Act 

has interpreted potential value to mean and include the 

following factors: 

(i)

The land has potentiality if it is in close proximity to a 

residential area, or the municipal limits of a city. Also to 

be considered is that the acquisition of such land is proof 

of its potential for development.

(Land Acquisition 

Collector, etc. v. Abdul Qayyum Malik, etc. 1980 SCM

CAs No.2150/2019, etc.

22

(ii)

The land is not to be valued merely by reference to the 

use to which it is being put at the time at which its value 

has to be determined, but also by reference to the uses to 

which it is reasonably capable of being put in the future; 

and market-value is the potential value of the property at 

the time of acquisition which would be paid by a willing 

buyer to a willing seller, when both are actuated by 

business principles prevalent in the locality at that time.

(Fazalur Rahman and others v. General Manager, S.I.D.B 

and another PLD 1986 SC 158).

(iii)

Revenue record is not conclusive of the value of the land, 

rather it is the value of the use which the land is capable

of and the use of the land in the vicinity. (Sardar Abdur 

Rauf Khan and others v. The Land Acquisition 

Collector/Deputy Commissioner, Abbotabad and others

1991 SCMR 2164 and Land Acquisition Collector, 

G.S.C., N.T.D.C., (WAPDA), Lahore and another v. Mst. 

Surraya Mehmood Jan 2015 SCMR 28).

(iv)

The Court is to take into consideration the potentialities 

of the land, which may even include the price escalation,

the issuance of notification under Section 4(1) of the Act.

(Land Acquisition Collector, Abbottabad and others v. 

Muhammad Iqbal and others 1992 SCMR 1245) and 

Sarhad Development Authority, NWFP (now KPK) through 

COO/CEO (Officio) and others v. Nawab Ali Khan and 

others 2020 SCMR 265)

CAs No.2150/2019, etc.

23

(v)

For determining the price which a willing purchaser 

would give to the willing seller relying only on past sales

is not enough as the value of the land with all its 

potentialities may be determined by examining local 

property dealers or other persons who are likely to know 

the price that the property can fetch in the open market. 

Where land is acquired near the Highway, its potentiality 

and future prospects are to be considered (Maqbool 

Ahmed Fatehally and others v. The Collector, District 

Lasbella and others 1992 SCMR 2342).

(vi)

The possibility of land being used for a different purpose 

in future and its potential value on account of its 

situation near the developed area is important. (Province 

of Punjab through Collector Bahawalpur, District 

Bahawalpur and others v. Col. Abdul Majeed and others

1997 SCMR 1692).

(vii)

Classification or the nature of land may be taken as 

relevant consideration but that is not the whole truth. An

area may be Banjar Qadeem or Barani but its market 

value may be tremendously high because of its location, 

neighbourhood, potentiality or other benefits. The 

potential uses to which the land can be put to is relevant.

(Murad Khan through his widow and 13 others v. Land 

Acquisition, Collector, Peshawar and another 1999 SCMR 

1647).

(viii) Amenities such as roads, water, gas, electricity are 

relevant as is availability of schools and colleges in 

CAs No.2150/2019, etc.

24

the vicinity of the acquired land. Urbanization of the 

area shows great potentiality of the area. (Ministry of 

Defence through Secretary, Government of Pakistan and 

others v. Syed Wajdi Rizvi 2009 SCMR 105 and WAPDA 

through S.E. Acquiring Cell CRBC Project WAPDA, D.I. 

Khan and another vs. Syed Ali and others 2010 SCMR 

82).

10.

The sum total of the aforesaid cases is that land 

must be valued as per its market value which is the price a 

willing buyer would give to a willing seller and must also 

include its potential value. Potential value means the value of 

the land based on the probability that if developed, considering 

its location and proximity to residential, commercial or 

industrial areas with amenities such as roads, water, gas, 

electricity, communication network and suitability it has the 

potential to be developed, which will increase its value. The 

value of land must include the potentiality of the land because 

this is the value, which the landowners would benefit from if 

they were able to maintain their ownership over the land. So 

far as the determination of potential value, there is no 

mathematical formula, which is applied uniformly in every 

case. Each case is seen in the context of its own facts but 

potential value has to be factored along with the market value.

The objective is to ensure that the landowner not only gets the 

actual value of the land at the time it is acquired but also gets 

the value based on any future prospects attached with the use 

of land. Consequently, factors such as entries in the revenue

CAs No.2150/2019, etc.

25

record and land classifications cannot form the basis of the 

compensation as it does not bring out the potential value of 

the land and it does not factor in future prospects of the land.

Although, the Land Revenue Collector is required to classify 

the land being acquired with its location, under Rule 10 of the 

Rules, it is not the sole basis for calculating the estimated 

price of the land under acquisition. It is important to note that

this Court has considered the concept of compensation in the 

case reported as Land Acquisition Collector and others v. Mst. 

Iqbal Begum and other (PLD 2010 SC 719) and concluded that 

if a landowner is deprived of their property they must be 

adequately compensated so as to give gold for gold and not 

copper for gold. This is the essence of granting potential value. 

This Court has also held that compensation cannot be based 

on past sales of similar land in the same vicinity because 

potentiality cannot be determined without examining future 

prospects. Hence, compensation is about the value of the land, 

being its market value plus its potential value, so as to ensure 

that the landowner is duly compensated. This is fundamental 

to the process of award of compensation.

11.

The law of acquisition is confiscatory in nature and 

easily deprives an individual of their property and all rights 

attached to it. The Constitution of the Islamic Republic of 

Pakistan, 1973 (Constitution) gives every citizen the right to 

acquire, hold and dispose of property in every part of Pakistan

under Article 23. Property has been interpreted to mean and 

include a right of proprietorship and includes every possible

CAs No.2150/2019, etc.

26

right or interest abstract or concrete. It includes the right to 

own, possess and enjoy the property (Pakcom Limited and 

others v. Federation of Pakistan and others PLD 2011 SC 44). 

The right to own property being a fundamental right is 

inclusive of the right to possession, right of control and the 

right to derive income from the property. Accordingly, the right 

to own property under Article 23 of the Constitution means the 

right to own economically productive property associated with 

agriculture, commerce, industry and business. Hence, it is a 

source of livelihood and provides economic security to a 

person. This goes to the underlying right to dignity of an 

individual and their home, as prescribed in Article 14 of the 

Constitution. Article 24 of the Constitution protects the right 

to own property such that no person can be deprived of his 

property save in accordance with law under Article 24. The 

exception to this fundamental right as per Article 24 is 

compulsory acquisition for public purpose, which means that 

the State can acquire private property for public purpose 

under the authority of law, which provides for compensation 

and either fixes the compensation or provides for a mechanism 

to fix compensation. The Constitution, therefore, mandates

that if there is any acquisition by the State, it will be under a 

Statute, which provides for due process and compensation. So 

the Constitution has ensured that if acquisition is necessary it 

comes at a cost, which is compensation. The right to 

compensation under the authority of a law has a constitutional 

underpinning that is the protection given to the right to own 

CAs No.2150/2019, etc.

27

property. In the context of acquisition it means that a person 

who owns property has to be compensated on account of being 

deprived of their property. When a person is deprived of their 

right to own property, even if in accordance with law, they are 

deprived of their right to control, possess and earn from that 

property. And this deprivation is what must be compensated. 

12.

The Act is a colonial law, designed to facilitate 

acquisition of private land for public purpose. The Act was 

enacted with the objective of building infrastructure like 

railway lines, roads, bridges and communication networks 

essential for the benefit of the rulers of the time. As per its 

Statement of Objects and Reasons (Gazette of India, 1892, Pt. 

V, p.32: for Report of the Select Committee, see ibid., 1894, p. 23 

and for Proceedings in Council, see ibid., 1892, Pt. VI, p.19, 25, 

and ibid., 1894, pp.19, 24 to 42), the law was designed to 

prevent a heavy burden on the public exchequer. Hence, its 

very objective was to acquire land at the least price possible. 

Despite amendments1 in Section 23 of the Act with the

requirements to calculate market value and potential value so 

as to compensate the landowner, the practice remains to 

calculate land value based on its classification. Hence, the 

colonial objective and understanding of the law continues as 

acquisition even today, for public purpose, is at the cost of an 

individual’s right to own property. In this context, there 

appears to be no effort on the part of the acquiring department 

1 Land Acquisition (West Pakistan Amendment) Ordinance, 1969 (XLIX OF 1969) 

published in the Gazette of West Pakistan (Extraordinary), dated 17 Decem

CAs No.2150/2019, etc.

28

to be fair in their application to determine compensation. The 

Constitution requires that where a person is deprived of their 

property under the Act, they must be compensated as per the 

requirements of the Act, however, the process followed and 

factors relied on when compensation is awarded is not close to 

the value of the land and is primarily based on the land 

classification revenue system, which lacks proximity with the 

market value and potential value of the land. This is despite 

the elaborate judgments decided by this Court setting out the 

factors to consider when calculating market value and 

potential value. Therefore, as we see it the effect remains the 

same as was in 1894, to acquire land at the lowest price 

possible. This is evident in the cases before us where the land 

was initially valued based on its land classification and land 

revenue requirements without actually granting the 

landowners the market value and potential value of their land. 

In the present cases, an entire lifetime has been spent in 

challenging the compensation awarded,

which was not 

determined in the context of Section 23 of the Act. The 

landowners disputed the compensation awarded in 1992,

which was based on the nature of the land being Chahi Aabi 

Selab (irrigated from well/flood water), Maira Rakkar Lass

(sandy), Banjar Qadeem and Ghair Mumkin (uncultivated land). 

These categories are based on agricultural requirements 

essentially denoting the manner in which the land is irrigated

adding to its fertility, quality of the soil and its potential for 

CAs No.2150/2019, etc.

29

cultivation. Based on this, the average yield per kanal can be 

calculated on the basis of which land revenue is assessed.

13.

These classifications are given in the West Pakistan 

Land Revenue Assessment Rules, 1968 and are defined as 

follows: 

Classes of land. (1) The most important

classes of cultivated land are as follows:-

(a)

barani dependent on rainfall;

(b)

sailab

flooded

or

kept

permanently moist by rivers;

(c)

rod-kohi watered from hill torrents;

(d)

abi watered by lift from tanks, 

Jhils, streams, by flow from springs

or karezes;

(e)

nehri irrigated by canals by flow or

lift;

(f)

chahi watered from wells;

(g)

chahi-nehri irrigated partly from a 

well and partly from a canal;

(h)

nul-chahi watered from tube-wells;

and

(i)

chahi-mustaar irrigated from water

taken on loan.

(2)

The most

important

classes

of

uncultivated land are as follows:-

(a)

banjar

kham

land

which

has

remained

unsown

for

four

successive harvests;

(b)

banjar

jaded

land

which

has

remained

unsown

for

twelve

successive harvests;

(c)

banjar qadim --- waste and barren 

land which has remained unsown 

for more than twelve successive 

harvests; and

(d)

ghair mumkin --- land which has, 

for any reason, become 

permanently uncultivable, such as 

land under roads, buildings, 

CAs No.2150/2019, etc.

30

streams, canals, karezes, tanks or 

the like or land which is barren 

sand or ravines.

The objective of these classifications is to assess the annual 

value of the landowner’s share of the produce cultivated on the 

land. In this context, valuing land based on agriculture

classification does not bring out the market value of the land

or even its potential value. The land may be classified as 

Banjar Qadeem or Chahi Aabi Selab but its market value may 

be much more based on its location and proximity to roads 

and other amenities.

Hence, reliance on the aforesaid 

classifications is not relevant for calculating compensation. In 

the cases before us, a large area of land was acquired for the 

extension of the POF, meaning that a factory is to be built on 

the land. The agricultural classifications and assessment 

formula have no real or material nexus to calculating 

compensation because the land is going to be used for nonagricultural purposes. By relying exclusively on the land 

revenue system to determine compensation effectively, the 

landowner is being given the least amount of compensation, 

without any thought as to the deprivation of the right to 

property. 

14.

Accordingly, we find that the fundamental error in 

these cases is that even though three villages have been 

acquired, the assessment for compensation made by the Land 

Acquisition Collector and the Referee Court was on the basis of 

agricultural classification of land, ignoring the potential value 

of the entire area being acquired. The Award looked at the 

As No.2150/2019, etc.

31

classification of land in the Jamabandi for all three villages 

and the cost was prepared accordingly. Based on the 

calculations made the acquiring department deposited the 

compensation in the government treasury in 1991. The 

landowners kept agitating for compensation as per the Act

until the High Court considered their plea and looked into the

factors, which should have been considered by the Land 

Acquisition Collector. Notwithstanding the time consumed in 

this process, the landowners have not been compensated and

have been threatened by dispossession, displacement and 

deprived of their livelihood, not to mention the despair caused 

by following an outdated and unjust process for grant of 

meagre compensation.

15. 

The entire thrust of the Federation’s and MEO’s

case is that land must be valued as per the landholdings it has 

acquired and not as one area. They also argue that the market 

value and potential value of small pieces of land cannot form 

the basis of compensatory value of a large area. They argue 

that some pieces of land may have a higher value, than others, 

due to their location, but that does not mean that the entire 

bloc will have the same value. They have relied on the case 

reported as Chimanlal v. Special Land Acquisition Officer, Poona

(AIR 1988 SC 1652) to argue that smallness of size is a plus 

factor whereas largeness of the area is a minus factor while 

calculating compensation. 

16.

This entire argument is flawed at several levels.

Firstly, the reliance on AIR 1988 SC 1652 is misconceived a

CAs No.2150/2019, etc.

32

the plus and minus factors have been given with respect to 

assessment of market value and not potential value. These are

used to ascertain price variations as per a prudent purchaser.

Hence distinguishable.

Secondly, the foremost basis of 

potential value is that land must be valued not only in terms of 

its market value as on the date of the notification under 

Section 4, keeping any delays and time lapse under 

consideration to the time of the award, but it must include the 

potential value of the land with reference to the use it is 

reasonably capable of being put to. Measuring the land in 

small parcels, based on ownership and revenue classifications 

is to the disadvantage of the landowners, because it 

undermines the potential value particularly when the 

acquisition is of a large area of land for a single project. In 

such a situation, the landowners must be given the benefit of 

the potential value of the entire area being acquired and not 

just small pieces of land, so as to ensure that the landowners 

are compensated as per the expected reasonable capacity of 

land use. Where the State opts to acquire land, for public 

purpose, then the Constitutional protection to property rights 

must be meaningful, because compulsory acquisition of land 

means the loss of economically productive property.

17.

The area has been described as being industrialized 

in some parts, close to the GT road and that there is a railway 

line leading to Peshawar and Rawalpindi in the area. Amenities 

such as gas, electricity, water and roads are available in the 

CAs No.2150/2019, etc.

33

area. There are pockets of residential areas, tube wells, hotels, 

markets and petrol pumps. The entire area is likely to benefit 

from these developments in the future. These are all attributes 

for calculating potential value, which were not duly considered

by the Land Acquisition Collector and Referee Court despite 

the fact that the relevance of these attributes have been given 

by this Court in many judgments over the years. We 

understand that there is no exact formula to calculate

potential value, and it must be seen in the context of the 

acquisition being made, however, we consider the objective of 

granting a lesser value for the land acquired, to be against the 

fundamental right to life, dignity and the right to own property.

The Constitution mandates that the landowner is compensated 

as per the Act and Section 23 of the Act ensures that the 

landowner gets the best market value keeping in consideration 

the future prospects of the use of the land. Compensation as a 

basic right means that the landowner does not lose any 

financial advantage that they had on account of their property 

rights. To evaluate the Land Acquisition Collector must 

consider the location of the land under acquisition, and its 

physical attributes such as accessibility, attributes related to 

land use, which include residential, commercial and industrial 

use; the availability of utilities such as water, gas, electricity, 

phone connectivity and the price of land in the vicinity. Adding 

to this value of the land, factors such as potential for economic

growth, urbanization, infrastructure development, adds value 

to the land. Where land is acquired for one project, the

CAs No.2150/2019, etc.

34

potential value of the entire area being acquired is relevant as 

the very purpose of the acquisition suggests that the land has 

future prospects. 

18.

Ideally, there should be guidelines to calculate this 

value, however, since the efforts of the government have been 

to undervalue the land, no real effort has gone into devising a 

scheme to calculate potential value over the years. This is why 

there is so much litigation on just this issue. Under the 

circumstances, there is a dire need to legislate on the issue 

and to devise a methodology to calculate potential value and 

market value so that it is neither arbitrary nor left to the 

whims of the Collector. This should be a priority for the 

government as acquisition cannot be at the expense of the 

financial loss of a landowner. Where there is acquisition for 

public purpose, the Act mandates that a fair value is 

prescribed based on the market value and the potential value 

of the land and the cases of this Court give sufficient guidance 

on calculating market value and potential value, hence, there 

appears to be no justification to continue with archaic

concepts whilst valuing the land. In these cases, market value 

and potential value has been assessed at Rs.30,000/- per 

kanal based on the willing buyer, willing seller formula as well 

as on the available amenities such as transport, electricity, 

urban development and industrialization, which shows there is 

potential for the area to be fully developed. This is based on 

CAs No.2150/2019, etc.

35

the evidence and calculation of future prospects.

Unfortunately, a great amount of time was consumed for the 

land owners to get the worth of their land all of which could 

have been avoided, had the value been properly assessed.

19.

Consequently,

in view of the aforesaid, Civil

Appeals No.2150 and 2154 to 2263 of 2019, filed by the 

Federation of Pakistan and Military Estate Officer as well as

Civil Appeals No.2151 to 2153 of 2019, filed by the two 

landowners, are dismissed. 

20.

Civil Misc. Applications No.5284 to 5300 of 2020 

filed by the Federation of Pakistan and Military Estate Officer 

are dismissed as not pressed. 

CHIEF JUSTICE

Islamabad

JUDGE

‘APPROVED FOR REPORTING’

24.03.2022

Azmat/*

JUDGE

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Following 2nd judgement is about the topic . Kpk govt ne property li jiss ki compensation 1 lakh 25 thousands rupees maqarar hoi jiss ke baad govt ne supreme court main Appeal kar di supreme court ne sab se pehle mutalqa qanoon ka ahata kia or mutalqa sections discuss kiye or qarar dia ke high court ke faisla main koi illegality sabat nahi hu saki lihaza High court ka faisla bahal kar dia.

2nd judgement 

IN THE SUPREME COURT OF PAKISTAN

(APPELLATE JURISDICTION)

PRESENT:

MR. JUSTICE IJAZ UL AHSAN 

MR. JUSTICE JAMAL KHAN MANDOKHAIL 

MRS. JUSTICE AYESHA A. MALIK

CIVIL APPEALS NOS. 364-P,365-P/19, 368-P to 391-P, 393-P to 403-P, 405-P, 

407-P/2019 & C.P.590-P/2019 AND CAs.409-P to 412-P/2019 AND CA.Nos. 04-P, 

11-P,12-P,17-P,20-P,21-P/2020

(Against the judgments dated 17.06.2019, 26.7.2019, 18.11.2019, 10.2.2020 passed by the 

Peshawar High Court, Peshawar in R.F.A.267-P/2018, R.F.A.294-P/2017, R.F.A.167-P/2018, 

R.F.A.186-P/2017, R.F.A.18-P/2018, R.F.A.172-P/2018, R.F.A.173-P/2018, R.F.A.175-P/2018, 

R.F.A.176-P/2019, R.F.A.177-P/2018, R.F.A.178-P/2018, R.F.A.180-P/2018, R.F.A.20-P/2019, 

R.F.A.30-P/2019, R.F.A.31-P/2019, R.F.A.96-P/2019, R.F.A.168-P/2018, R.F.A.169-P/2018, 

R.F.A.170-P/2018, R.F.A.171-P/2018, R.F.A.179-P/2018, R.F.A.174-P/2018, R.F.A.93-P/2019, 

R.F.A.94-P/2019, R.F.A.95-P/2019, R.F.A.97-P/2019, R.F.A.180-P/2013, R.F.A.142-P/2017, 

R.F.A.249-P/2017, R.F.A.49-P/2019, R.F.A.59-P/2019, R.F.A.60-P/2019, R.F.A.61-P/2019, 

R.F.A.62-P/2019, R.F.A.72-P/2019, R.F.A.50-P/2019, R.F.A.131-P/2014, R.F.A.67-P/2014, 

R.F.A.72-P/2019, 12(2).P.24-P/2019 in R.F.A.36-P/2018, R.F.A.59-P/2019, R.F.A.71-P/2019, 

R.F.A.83-P/2019, R.F.A.63-P/2019, R.F.A.03-P/2018, R.F.A.98-P/2019, R.F.A.03-P/2018, RFA-92-

P/2019, RFA-142-P/2013, RFA-143P/2013).

1.C.A.364-P/2019

Nawabzada Abdul Qadir Khan v. Land Acquisition Collector 

Mardan& others

2.C.A.365-P/2019

Mst. Parwar Sultana v. District Land Acquisition 

Collector/District Collector Mardan& others

3.C.A.368-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. 

Shams ul Qamar & others

4.C.A.369-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. 

Faqir Khan & others

5.C.A.370-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. Mst. 

Parwar Sultana & others.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020

4

28.

C.A.394-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. 

Faqir Khan & others

29.

C.A.395-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. Mst. 

Parwar Sultana & others

30.

C.A.396-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. 

Syed Masood ur Rehman & others

31.

C.A.397-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. Ali 

Akbar & others

32.

C.A.398-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. 

Naeem Shah & others

33.

C.A.399-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. 

Sher Zada & others

34.

C.A.400-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. Wali 

Khan & others

35.

C.A.401-P/2019

Vice Chancellor Abdul Wali Khan University Mardan v. 

Hashim Khan & others

36.

C.A.402-P/2019

Vice Chancellor Abdul Wali KhanUniversity, Mardan v. 

Ayub Khan & others

37.

C.A.403-P/2019

Vice Chancellor Abdul Wali KhanUniversity, Mardan v. 

Ayub Khan & others

38.

C.A.405-P/2019

Abdul Wali KhanUniversity, Mardan through Chairman v. 

39.

C.A.407-P/2019

Land Acquisition Collector/District Collector, Mardan (now) 

Deputy Commissioner, Mardan& others v. Hashim Khan & 

others

40.

C.P.590-P/2019

Vice Chancellor Abdul Wali Khan University Mardan& 

another v. Mst. Haleema& others

41.

C.A.409-P/2019

Provincial Govt through DOR, mardan (Now) Deputy 

Commissioner Mardan& others v. Ali Akbar & others

42.

C.A.410-P/2019

Secretary to Govt of KP, Higher Education Archives & 

Libraries Peshawar& others v. Abdul Sattar & another

43.

C.A.411-P/2019

Govt. of K.P. through CosllectorMardan (Now) Deputy 

Commissioner Mardan& others v. Redi Gul & others

44.

C.A.412-P/2019

Land Acquisition Collector, Mardan (now) Deputy 

Commissioner, Mardan& others v. Nawabzada Abdul Qadar 

Khan & others

45.

C.A.4-P/2020

Mst. Parwar Sultana v. District Land Acquisition 

Collector/District Collector, Mardan and others

46.

C.A.11-P/2020

Vice Chancellor Abdul Wali KhanUniversity, Mardan v. 

Arshaf Khan and others

47.

C.A.12-P/2020

Vice Chancellor Abdul Wali KhanUniversity, Mardan v. Mst. 

Parwar Sultana and others

48.

C.A.17-P/2020

Vice Chancellor Abdul Wali KhanUniversity, Mardan v. Mst. 

Muhammadia and others

49.

C.A.20-P/2020

Vice Chancellor Abdul Wali khan University, Mardan v. 

Mst. Sher Bakhta, Widow and others

CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020

6

50.

C.A.21-P/2020

Vice Chancellor Abdul Wali Khan University, Mardan v. 

Hasham Khan and others

…Appellant(s)/Petitioner(s)/Respondent(s)

For the Appellant(s)/

Petitioner(s):

Syed Haziq Ali Shah, ASC

Mr. Tariq Aziz, AOR

(In C.A.364-P/19 AND Res: in CA.412-P/19)

Mr. Muhammad Ajmal Khan, AOR

(In C.A.365-P/19, CA.04-P/20 

AND Res: in CA.12-P/20) 

(Via V/L, Peshawar) 

Mr. Khalid Khan, AOR/ASC

(In C.As.368-P to 391-P, 393-P to 403-P, 405-P/19, 

CAs.11-P, 12-P/20 & CP.590-P/19) 

(Via V/L, Peshawar) 

Mr. Zahid Yousaf Qureshi, Addl. AG, KPK

Malik Akhtar Hussain, Addl. AG, KPK

Qazi Ayaz, Litigation Officer

(In C.As.407–P,409-P to 412-P/19) 

Mr. Ghulam Mohyuddin Malik, ASC

(In C.As.17-P, 20-P,21-P/2020) - Via V/L, Peshawar

For the Respondent(s):

Mr. Abdul Ahad Khan, ASC

(In C.As.371-P, 372-P/19, 375-P, 386-P, 390-P, 

398-P, 411-P/2019 & CA.17-P/2020) –

(Via V/L, Peshawar) 

Other Respondent(s):

Nemo

Date of Hearing:

05.09.2022.

JUDGMENT

IJAZ UL AHSAN, J-. Through instant Appeals, the 

Appellants have challenged a judgment of the Peshawar High 

Court, Peshawar dated 17.06.2019 (hereinafter referred to as 

the “Impugned Judgment”) whereby Regular First Appeals 

No.180-P/2013, 67 & 131-P/2014 and 142 & 249-P/2017 

were allowed and the judgements and decrees of the 

Additional District Judge-VIII/Judge Referee Court Mardan

CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020

7

(the “Referee Court”) were modified to the extent that the 

quantum of compensation for all the land acquired under 

notification dated 16.09.2008 was set at Rs.125,000/- per 

marla.

2.

The necessary facts giving rise to this lis are that 

the Government of Khyber Pukhtunkhwa (the “Government 

of KP”) through the District Officer (Revenue), Mardan issued 

a notification under Section 4 of the Land Acquisition Act, 

1894 (the “LAA 1894”) on 16.09.2008. Through the said 

notification, the Government of KP preliminarily notified the 

acquisition of all land situated in Mauza Palatoo, Tehsil and 

District Mardan for the establishment of Abdul Wali Khan 

University, Mardan (the “Contesting University”). A 

corrigendum with regard to notification dated 16.09.2008 was 

issued on 25.10.2008 when the NWFP Agricultural 

University, Peshawar intimated their desire to establish a 

sub-campus in Mardan to the Government of KP. To that 

extent, the notification dated 16.09.2008 was modified to 

include both the establishment of Abdul Wali Khan University 

as well as the establishment of a sub-campus of the NWFP 

Agricultural University in Mardan. Afterwards, the District 

Officer (Revenue) Mardan, vide award under Section 11 of the 

LAA 1894 dated 20.07.2010, set the price for compensation at 

the rate of Rs.2800/- per marla along with 15% compulsory 

acquisition charges. Aggrieved of the said valuation of their 

land, several landowners filed references under Sections 18, 

30 & 31 of the LAA 1894 before the Referee Court. The 

CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020

8

Contesting University and other acquiring departments 

objected to the references and after pro and contra evidence 

was led, the Referee Court set the quantum of compensation 

at Rs.20,000/- per marla. The said valuation was challenged 

by both the land owners as well the Contesting University 

before the High Court which, vide judgement dated 

01.12.2016, remanded all the reference petitions to the 

Referee Court for decision afresh. After the matter was 

remanded to the Referee Court, the Referee Court appointed 

local commissioners in each reference petition to conduct 

spot examinations and accordingly submit their reports. After 

the local commissioners submitted their respective reports, 

the Referee Court set the quantum of compensation at the 

rate of 45,000/-, 75,000/- & Rs.125,000/- per marla as 

compensation in the respective reference petitions along with 

15-percent compulsory acquisition charges and 6-percent 

interest from the date of acquiring of possession till final 

payment. The judgements and decrees of the Referee Court in 

the various reference petitions were assailed before the High 

Court. The High Court, vide the impugned judgement, allowed 

the appeals of the landowners and dismissed the appeals filed 

by the Contesting University as well as the Government of KP. 

In allowing the appeals of the landowners, the High Court set 

the quantum of compensation at the rate of Rs.125,000/-

across the board for all land acquired under notification dated 

16.09.2008. The impugned judgment is now being assailed by 

the landowners, the Contesting University and the 

Government of KP before this Court.

CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020

9

3.

At the very outset, the Learned ASCs for the land 

owners as well as the Agricultural University, Mardan and 

Bacha Khan Medical University, Mardan in their various 

Appeals before this Court have, on instructions, submitted 

hat the amount of compensation set by the High Court is 

reasonable and that they no longer have any grievances 

insofar as their relevant appeals are concerned.

4.

The Learned counsel for the Contesting University 

on the other hand has argued that the impugned judgement

is liable to be set aside on the ground that the acquired land 

at the time when it was acquired by the Government of KP for 

the Contesting University was barren and had no potentiality

whatsoever. It was only after the land had been acquired for 

the University that the value of the land increased. He prays 

that the judgements of both the High Court as well as the 

Referee Court may be set aside, the reference petitions of the 

Respondents be dismissed and that the original award 

compensation of Rs.2,800/- per marla be restored.

5. 

The Additional Advocate Generals for KP have 

contended that the only grievance of the Government of KP 

insofar as the present appeals are concerned is the imposition 

of six-percent interest from the date of acquisition till the date 

of final payment. Further contend that in light of a judgement 

passed by the Federal Shariat Court declaring usury/riba 

forbidden and repugnant to the injunctions of Islam, interest 

was not payable. He therefore submits that the Referee Court 

CIVIL APPEALS NO.364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020

10

had no power to impose six-percent interest on the amount of 

compensation payable to the landowners when the same had 

been declared against the injunctions of Islam. They pray that 

the impugned judgement may be modified to the extent of 

removal of six-percent interest.

6. 

We have heard the learned counsels for the parties 

at length and gone through the case record.

7. 

Before we touch the merits of the arguments 

submitted in the instant Appeals, it is prudent to first go over 

all the relevant provisions of the LAA 1894 that are necessary 

for the purposes of these instant Appeals. Section 23 of the 

LAA 1894(as amended in the KP in 2018) lays down a criteria 

for how a Referee Court is to determine compensation. It is 

reproduced below for ease of reference:-

“23

MATTERS TO BE 

CONSIDERED IN 

DETERMINING COMPENSATION.

(1) In determining the amount of compensation to be 

awarded for land acquired under this Act the Court 

shall take into consider consideration:

firstly, the market-value of the land at the date of 

taking possession of the land.

EXPLANATION - For the purpose of determining the 

market value, the Court shall take into account 

transfer of land similarly situated and in similar use.

The potential-value of the land to be acquired if put to 

a different use shall only be taken into consideration if 

it is proved that land similarly situated and previously 

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in similar use has, before the date of the notification 

under subsection (1) of section 4, been transferred 

with a view to being put to the use relied upon as 

affecting the potential value of the land to be acquired: 

Provided that –

(i) if the market-value has been increased 

inconsequence of the land being put to a use 

which is unlawful or contrary to public policy that 

use shall be disregarded and the market-value 

shall be deemed to be the market-value of the 

land if it were put to ordinary use; and

(ii) if the market-value of any building has been 

increased in consequence of the building being so 

overcrowded as to be dangerous to the health of 

the inmates such overcrowding shall be 

disregarded and the market-value shall be 

deemed to be the market-value of the building if 

occupied by such number of persons only as can 

be accommodated in it without risk of danger to 

health from overcrowding.

secondly, the damage sustained by the person 

interested by reason of the taking of any standing 

crops or trees which may be on the land at the time of 

the Collector's taking possession thereof;

thirdly, the damage (if any) sustained by the person 

interested, at the time of the Collector's taking 

possession of the land, by reason of severing such 

land from his other land:

fourthly, the damage (if any) sustained by the person 

interested at the time of the Collector's taking 

possession of the land, by reason of the acquisition .364-P, 368-P, 393-P, 405-P, 590-P, 409-P, 412-P OF 2019 A/W 4-P, 11-P, 12-P, 17-P, 20-P, 21-P OF 2020

12

injuriously affecting his other property, movable or 

immovable in any other manner, or his earnings; 

fifthly, if, in consequence of the acquisition of the 

land by the Collector, the person interested is 

compelled to change his residence or place of 

business, the reasonable expenses (if any) incidental 

to such change; and

sixthly, the damage (if any) bona fide resulting from 

diminution of the profits of the land between the time 

of the publication of the declaration under section 6 

and the time of the Collector's taking possession of the 

land.

(2) In addition to the market-value of the land as 

above provided, the Court shall award a sum of 

fifteen per centum on such market-value, in 

consideration of the compulsory nature of the 

acquisition, if the acquisition has been made for a 

public purpose and a sum of twenty-five per centum 

on such market-value if the acquisition has been made 

for a Company.”

A bare perusal of Section 23 shows that according to the LAA 

1894, there are six matters that need to be taken into 

consideration by a Referee Court in determining 

compensation for land acquired under the LAA 1894.While 

the market value of the land acquired at the time of 

possession may be the first matter a Court must take into 

consideration, it is not the only matter. The Court is bound to 

consider when a determination has to be made under Section 

23 of the LAA 1894. Instead, the other five considerations, 

from their very text, imply that whenever a Court is to 

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13

consider the quantum of compensation, it must be duly 

aware and cognisant of the loss being caused to the 

landowners due to the Federal or Provincial Government’s 

exercise of eminent domain under the LAA 1894.In essence, 

landowners are deprived of their constitutionally-guaranteed 

proprietary rights under Article 24 of the Constitution of 

Pakistan, 1973 whenever a government, be it Federal or 

Provincial, exercises eminent domain under the LAA 1894. It 

is therefore only fair and just that the persons who are 

affected by the exercise of eminent domain are at the centre of 

consideration when it comes to determining the quantum of 

compensation. 

6. 

Coming to the merits of the arguments raised by 

the Contesting University, perusal of the record reveals that 

the Contesting University had been a party before both the 

Referee Court as well as the High Court. The Contesting 

University has been heard by all the Courts below. Both the 

courts below have held that the compensation award for 

Rs.2,800/- per marla was on the basis of a one-year average 

(Aust Yaksala) of the acquired land. The argument of the 

Contesting University that the initial rate of Rs.2,800/- was 

the correct valuation is unsustainable for the reason that 

basing compensation on a one-year average of the land 

acquired would go against the criteria laid down in Section 23 

of the LAA 1894. The rate of Rs.2,800/-per marla in the 

present case was based solely on the one-year average of the 

acquired land. As noted above, the intention of the legislature 

F 2020

14

behind Section 23 is one where a Court, when determining 

compensation under the said Section, needs to be considerate 

and sympathetic to those who have been subjected to 

eminent domain by the government. Section 23 allows the 

Court to bring landowners, who have been subjected to 

eminent domain, back to their positions before the eminent 

domain was exercised. To base compensation on a one-year 

average of the acquired land would defeat the intent of the 

legislature behind Section 23.Even otherwise, in a judgement 

passed by this Court in Pakistan Brumah Shell Ltd. vs. 

Province of NWFP (1993 SCMR 1700), this Court held that:-

“6. We are not persuaded to strike off the award on 

the rectitude of these submissions. Section 23 makes 

mention of various matters to be considered in 

determining the compensation. One of such factors 

enumerated therein is that the date relevant for 

determination of market value is the date of the 

notification under section 4. Not unoften the market 

value has been described as what a willing purchaser 

would pay to the willing seller. It may be observed 

that in assessing the market value of the land, its 

location, potentiality and the price evidenced by the 

transaction of similar land at the time of notification 

are the factors to be kept in view. One year's average 

of the sales taking place before the publication of the 

notification under section 4 of similar land is merely 

one of the modes for ascertaining the market value 

and is not an absolute yardstick for assessment. From 

the perusal of the record we find that there are two 

"Makhloot Ausat Punjsala" on the land acquisition file; 

one for village Bhabi for the period from 21-7-1985 to 

21-7-1986 comprising 5 transactions yielding an 

F 2020

14

behind Section 23 is one where a Court, when determining

compensation under the said Section, needs to be considerate

and sympathetic to those who have been subjected to

eminent domain by the government. Section 23 allows the

Court to bring landowners, who have been subjected to

eminent domain, back to their positions before the eminent

domain was exercised. To base compensation on a one-year

average of the acquired land would defeat the intent of the

legislature behind Section 23.Even otherwise, in a judgement

passed by this Court in Pakistan Brumah Shell Ltd. vs.

Province of NWFP (1993 SCMR 1700), this Court held that:-

“6. We are not persuaded to strike off the award on

the rectitude of these submissions. Section 23 makes

mention of various matters to be considered in

determining the compensation. One of such factors

enumerated therein is that the date relevant for

determination of market value is the date of the

notification under section 4. Not unoften the market

value has been described as what a willing purchaser

would pay to the willing seller. It may be observed

that in assessing the market value of the land, its

location, potentiality and the price evidenced by the

transaction of similar land at the time of notification

are the factors to be kept in view. One year's average

of the sales taking place before the publication of the

notification under section 4 of similar land is merely

one of the modes for ascertaining the market value

and is not an absolute yardstick for assessment. From

the perusal of the record we find that there are two

"Makhloot Ausat Punjsala" on the land acquisition file;

one for village Bhabi for the period from 21-7-1985 to

21-7-1986 comprising 5 transactions yielding an 

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15

average sale price of Rs. 9,000 per Kanal only; and 

the other is for village Taru covering the period from 

9-7-1984 to 9-7-1985, but only one transaction is 

mentioned in it; of which the sale price comes to Rs. 

24,280 per Kanal. It is significant to point out that 

there is nothing on the land acquisition file to give any 

indication regarding the location, potentiality and 

other characteristics of the different pieces of land 

included in these "Aust Yaksala". Neither their 

distance from the land in question is ascertainable nor 

it is known as to whether or not these are possessed 

of similar advantages and capable of prospective use 

as the land acquired by the appellant.

The 

"AksShajra" of the land of the appellant amply 

demonstrates that it is a well shaped, one rectangular 

compact block having a fairly wide frontage and on 

one side, it abuts on the railway line. The Land 

Acquisition Collector's observation in the award that 

this land is of highest value and situate near the 

National Highway, for the purposes of assessment of 

its market value is of paramount importance. We have 

glanced through the MEO's letter dated 1-11-1986 

referred to in the award under which an area 

measuring 6.065 acres situate in village Taru-Bhabi 

was sold to Pakistan State Oil Company for a 

consideration of Rs. 48,00,000. It is pertinent to point 

out that all the Oil Companies were directed by the 

Provincial Government to shift their storage depots 

from Peshawar City and it was in this connection that 

the Pakistan State Oil Company purchased a piece 

land in village Taru-Bhabi. It seems to us that the 

locality being lucrative the appellant also chose to 

acquire land therein. In these circumstances, the 

reliance of the Land Acquisition Collector on the said 

sale transaction for determination of the market value 

of the land is not open to exception.”

(Underlining is ours)

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The Learned Counsel for the Contesting University could not 

point out any ground which could persuade us come to the 

conclusion that the High Court had committed an error in law 

or otherwise when it determined the rate of compensation at 

the rate of Rs.125,000/- per marla. No mis-reading or nonreading of evidence could also be pointed out by the Learned 

Counsel for the Contesting University.

7. 

Coming to the points raised by the Additional 

Advocate Generals for KP, we note that Section 34 of the LAA 

1894 has never been repealed by the KP Provincial Assembly, 

and therefore have no qualms in arriving at the conclusion 

that the imposition of six-percent interest imposed by both 

the Courts had been done in accordance with law. To that 

extent, the Additional Advocate Generals, KP have not been 

able to point out any illegality in the imposition of the sixpercent interest by both the Courts below. Section 34 of the 

LAA 1894 still holds the field and continues to do so. It is, 

however, important to clarify that unlike riba/interest that 

accrues out of a financial obligation between the parties, the 

word “interest” in Section 34 of the LAA 1894 is not interest 

stricto sensu. The interest awarded to landowners under 

Section 34 is compensatory in nature that allows the Court to 

compensate the landowners for the financial loss landowners 

would suffer from the date of acquisition till payment of 

compensation by the acquiring authority. Unlike a financial 

transaction, where parties are often assumed to be equal in

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17

bargaining power and are deemed to be consenting to a 

transaction, an exercise of eminent domain cannot in any 

sense be construed as either a consenting transaction 

between the parties involved (i.e.

the State and the 

landowners) nor can it be assumed by any stretch of 

imagination that the state and the landowners are equal in 

terms of bargaining power. Eminent domain is, after all, a 

unilateral power of the government and no consent from the 

affected landowners is required under the law before the state 

can exercise eminent domain under the LAA 1894. Even 

otherwise, as held by this Court in the case of Sheikh 

Muhammad Ilyas Ahmed vs. Pakistan thr. Secretary, Ministry 

of Defence (PLD 2016 SC 64), the benefit of Section 34 is 

statutory in nature and such benefit cannot be withheld from 

the landowners on the ground that interest has been declared 

against the injunctions of Islam. Whilst riba/usury may be 

predatory in nature, the interest under Section 34 of the LAA 

1894 is beneficial in nature since it allows landowners to be 

compensated after the Federal or Provincial Government’s 

unilateral exercise of eminent domain and to cover the 

financial loss that the landowners would invariably suffer on 

account of loss of use of their land/property till the time they 

recover compensation for the same.

8.

In light of what has been discussed above, we find 

that the judgement of the High Court is well-reasoned, takes 

note of all material aspects of the case and has elaborately 

noted all the reasons why it enhanced the quantum of 

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18

compensation at the rate of Rs.125,000/- per marla for all the 

land acquired in Mauza Palatoo, Tehsil and District Mardan. 

No ground has been raised which could lead us to a 

conclusion different than the one taken by the High Court. No 

perversity or illegality could also be pointed out in the 

impugned judgment when the High Court set the rate of 

compensation at the rate of Rs.125000/- per marla for all the 

land acquired in Mauza Palatoo, Tehsil and District Mardan 

by virtue of notification dated 16.09.2008. The impugned 

judgement passed by the Peshawar High Court, Peshawar is 

accordingly upheld.

All these matters are accordingly 

dismissed.

Judge

Judge

Judge

ISLAMABAD, THE

5th of September, 2022

Khalil Sahibzada 1926, LC*/-

NOT APPROVED FOR REPORTING*

 

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