1999 PLP 43 (SCMR)

MUHAMMAD BASHIR JEHANGIRI, J.

The abovementioned three petitions for leave to appeal are directed against a common order of the Peshawar High Court, D.I. Khan Bench dated 3-4-1997 whereupon the three R.F.As. filed by the Government of N.-W.F.P. against the different respondents/land owners in whose favour enhancement of compensation in the acquisition of land from Rs.41,789.40 per Kanal to Rs.68,092 was maintained.

2. The facts which have given rise to these petitions are that the disputed land was acquired for the public purpose of "Construction of Lachra Minor off take at RD-21362. Of Paharpur Canal" by Notification under section 4 of the Land Acquisition Act (I of 1894) (hereinafter called the Act) dated 13-2-1988. The Award was passed on 23-5-1991 assessing the market value at the I&C Of Rs.41,779.80 per Kanal. The respondents, feeling aggrieved, filed the objection petitions, which on reference by the Collector, were entrusted to the Referee Judge. On such reference being made, the parties led evidence before the Referee Judge on the following three issues:-- (5) Whether the impugned award is correct and in accordance with law? (6) Whether the compensation amount assessed and determined by Acquisition Collector is wrong, illegal, against facts and as such the objectors are entitled to the enhanced amount In addition to the interest permissible under the Law) (7) Whether the objectors/petitioners are entitled to the order as prayed for? "

3. After examining the evidence of the parties, the learned Referee Judge relied upon the three Schedules of one year average worked out by the Patwari Exh.P.W.-I/I, Exh.P.W.-2/3, and Exh.P.W.-2/4 and taking the average of all the three Schedules assessed the compensation at the rate of Rs.68,092 per Kanal as mentioned in the Schedule, photo copy Exh.P.W.-2/3.

4. Feeling aggrieved, the Government of N.-W.F.P. through Collector Land Acquisition, D.I. Khan, filed the three titled Regular First Appeals whereby the enhancement of the compensation from Rs.41,779.80 to 68,092 per Kanal plus 15% compulsory acquisition charges alongwith 8% compound interest on the difference from the date of the possession of the suit land till the recovery of the amount has been challenged.

5. The learned Judges of the Division Bench who were seized of the appeals, upheld the amount of compensation enhanced by the learned Referee Judge to Rs.68,092 per Kanal.

6. Mr Talat Qayyum Qureshi, learned Additional Advocate-General, N.-W.F.P., in support of these petitions, contends that the enhancement of the amount of compensation from Rs.41,779.80 per Kanal to Rs.68,092 was not sustainable in law as the petitioner-Collector had worked out the price of the disputed land on the criteria laid down in section 23 of the Act and, therefore, the learned Referee Judge as well as the learned Division Bench in the High Court have erred to enhance the amount of compensation without any valid reason. The learned Additional Advocate-General then seriously contested the award of interest at the rate of compound interest on the excess or balance amount of 8 per centum per annum interest instead of simple interest at the rate of 6 per cent per annum which has been brought about by way of amendment in section 28 of the Act by virtue of the Land Acquisition (N.-W.F.P. Amendment) Ordinance (V of 1983) dated 23-5-1983.

7. After going through the judgments of the learned Referee Judge and also that of the learned Division Bench in the High Court, we find that no valid exception can be taken to the criteria adopted by the learned Referee Judge by taking into consideration the three Schedules of Average Prices worked out by the Patwaris which is not in violation of any of the matters to be considered for determination of compensation under section 23 of the Act and those which are t o be ignored under section 24 of the Act. We, therefore, do not find any justification to interfere in either the order of enhancement of the compensation or 15 per centum as the compulsory acquisition charges on the amount so' enhanced.

8. We, however, find that the learned Referee Judge has fallen into a legal error in granting compound interest at the rate of eight per centum per 'um the enhanced amount of compensation as section 28 of the Act has since been substituted by Land Acquisition (N.-W.F.P. Amendment) Ordinance (V of 1983) dated 23-5-1983 whereby if the sum which, in the opinion of the Court, the Collector ought to have awarded as compensation is in excess of the sum which the Collector did award as compensation, the award of the Court may direct that the Collector shall pay simple interest on such excess at the rate of six per centum per annum from the date on which he took possession of the land to the date of payment of such enhanced amount into Court. While upholding the order of enhancement of the compensation to Rs.68,092 + 15% compulsory charges thereon, we order that the land-owners/respondents shall be entitled to- simple interest on the said enhanced amount at the rate of six per centum per annum from the date on which the Collector took possession of the land to the date of payment of such enhanced amount into the Court.

9. With this modification in the rate and the nature of the interest, the three petitions are dismissed and leave to appeal is refused. A.A./G--22/S Leave refused