Residential and commercial property ,not determine by just revenue record, Land acquisition,






Zair nazar case government ju zameen kharidti hai aik aam aadmi se or us ko poore qeemat zameen ki ada nahi karti.

Issue iss baat per tha ke government ne zameen ki qeemat ju service Road banane ke liye kharidi gai thi us ka rate residential land (rahishi zameen) ke hisab se laga dia kionke zameen mehkma maal ke record mai sakni thi. jabke malik ne bataya ke zameen commercial hai. Appeal manzoor hoi or us ke accordingly raqam 3 lakh marla ke hisab se aada hoi


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JUDGMENT SHEET
IN THE LAHORE HIGH COURT, LAHORE.
JUDICIAL DEPARTMENT.
R.F.A. No.13860/2019
Maj. (Retd) Bashir Ahmad V.
Province of Punjab, etc.
R.F.A. No.22896 of 2019.
Province of Punjab through LAC V.
Major (Retd.) Bashir Ahmad
Date of Hearing
25.05.2022.
Appellant(s) by
M/s Hafiz Rehman Aziz and Salman Ahmad 
Dogar, Advocates. 
Respondents
Malik Abdul Aziz Awan, Additional Advocate 
General and Sajjad Ahmad Qureshi, LAC, Punjab 
Highway.
 
MUHAMMAD AMEER BHATTI, CJ:- The appellant
being dissatisfied from the compensation assessed by the respondentsacquiring agency reflecting from Award, filed a Reference under Section 
18 of the Land Acquisition Act, 1894, before the Court of competent 
jurisdiction and after recording evidence of both the parties, the learned 
Referee Court while deciding issue No.4 enhanced the compensation from 
Rs.100,000/- to Rs.150,000/- per marla. 
Both the parties: the appellant/owner and the acquiring 
agency/Government filed appeals bearing R.F.A. Nos.13860/2019 and 
22896/2019, respectively. Obviously the Government has challenged the 
enhancement whereas the appellant/owner has prayed for satisfaction of 
his total claim of Rs.400,000/- per marla along with 15% compulsory 
acquisition charges and 8% compound interest, which was not accepted 
and only Rs.50,000/- were enhanced. Through this single judgment, the 
said two appeals are being decided together.
R.F.A.No.13860 of 2019.
R.F.A. No.22896 of 2019.
2
2.
I have heard the learned counsels for the appellant, the 
learned Additional Advocate General and examined record of the case.
3.
It is noticed that the learned Referee Court for determining 
the compensation concluded the category of appellant‟s land as 
„residential‟ and enhanced the compensation accordingly ignoring all the 
relevant documentary evidence showing/establishing its use as 
„commercial‟. Another important document, i.e. the report of the SubCommittee, containing the price of the land situated in Kahna village 
adjacent to the appellant‟s land at the rate of Rs.300,000/- per marla 
considering it as „commercial‟ was also ignored.
4.
It is not denied by the respondents-acquiring agency that the 
portion of land of appellant‟s running factory was acquired for 
construction of service road. Hence, it is established from the record that 
land of existing running factory was seized considering it „residential‟ on 
the basis of revenue record for the purpose of construction of service 
road, which is contrary not only to the existing status of the land but also 
inconsistent with the settled principles of law enunciated by honourable 
Supreme Court. It is settled law that not only the revenue record be 
considered determining the category of the land but its use at the 
acquiring time would also be relevant to examine its potentiality. Learned 
Referee/trial Court, although, while enhancing the rate relied upon the 
Price Assessment Chart prepared by the Sub-Committee but category of 
the land was mistakenly declared „residential‟ merely on the basis of 
R.F.A.No.13860 of 2019.
R.F.A. No.22896 of 2019.
3
revenue record and granted the compensation accordingly as assessed by 
the Sub-Committee for Kahna village; hence, it is held that the learned 
Referee Court has committed material illegality and irregularity while 
declaring the appellant‟s land as „residential‟ and assessing the price 
accordingly. It is well settled law that use of land at the time of 
acquisition shall also be considered a factor to determine its 
status/classification and revenue record cannot be the exclusive criteria to 
determine its value and potential, whereas in this case classification of 
land in dispute was determined on the basis of the revenue record. It is 
also noticed that adjoining land was classified as „commercial‟ and 
compensation was assessed accordingly. Another aspect is that the 
potential of the land has also been ignored as undeniably many factories 
in running position were also existing adjacent to the appellant‟s factory, 
which was acquired by the respondents. Therefore, I am inclined to 
interfere with the findings recorded by the learned Referee Court, as the 
same are inconsonance with the law laid down by apex Court in a case 
reported as Land Acquisition Collector, BOR Punjab vs. Syed Haroon 
Iftikhar and others (2014 SCMR 659) and Land Acquisition Collector, 
G.S.C., N.T.D.C., (WAPDA), Lahore and another vs. Mst. Surraya 
Mehmood Jan (2015 SCMR 28). In the latter landmark judgment, it has 
been held as under:-
“The principles that can be gleaned from the aforesaid 
judicial precedents are that the term “market-value” as 
employed in section 23 of the Act of 1894 implies the price 
that a willing purchaser would pay to a willing buyer in an 
open market arm‟s length transaction entered into without 
any compulsion. Such determination must be objective rather 
R.F.A.No.13860 of 2019.
R.F.A. No.22896 of 2019.
4
than subjective. While undertaking this exercise, 
contemporaneous transactions of the same, adjoining or 
adjacent as well as the land in the same vicinity or locality; in 
dissenting precedents, may be taken into account. An award 
of compensation of a similar, adjacent, adjoining land or in 
respect of the land acquired in the same vicinity or locality 
cannot be ignored. The classification of the land in the 
Revenue Record cannot be the sole criteria for determining 
its value and its potential i.e. the use of which the said land 
can be put, must also be a factor. In this behalf, the use of the 
land in its vicinity needs to be examined.” (underline 
emphasized)
5.
In view of the above, this appeal is allowed and the 
compensation is granted to the appellant in terms of the price assessed by 
the Sub-Committee for the commercial land as Rs.300,000/- per marla.
The other appeal bearing R.F.A. No.22896/2019, in consequence of 
acceptance of R.F.A. No.13860/2019 is dismissed. No order as to costs.
 
(MUHAMMAD AMEER BHATTI)
CHIEF JUSTICE.
Approved for reporting.
CHIEF JUSTICE.


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