2009 PLP 1381 (MLD)

MAULVI ANWARUL HAQ.--This I.C.A. proceeds against judgment dated 16-4-2009 of a learned Single Judge, in Chamber, of this Court, whereby Writ Petition No.8010 of 2008 filed by the appellants has been dismissed.

2. Learned counsel for the appellants contends that the impugned judgment fails to take note of the fact apparent on the face of the record that the appellant were not claiming any enhancement in compensation. Their prayer, in fact, was for grant of compound interest in accordance with the mandatory statutory provision. He relies on the case of Collector of Land Acquisition, Nowshera v. Fazal Rahim and 3 others (1984 SCMR 1043). The respondents have been served but none has turned up on their behalf despite calls. They are accordingly proceeded against ex parte.

3. We have examined the writ petition records. According to the contents of the writ petition, land belonging to the appellants was acquired. Although the award was announced on 28-9-2005, the possession was taken over on 10-7-1999. In the said award (Annex-B) to the writ petition, the Land Acquisition Collector, NHA, determined the compensation payable for the land. In respect of land measuring 223 Kanals, 11 Marlas the possession whereof was taken over on 10-7-1999, apart from 15% compulsory acquisition charges the LAC awarded simple interest at the rate of 8% per annum from the date of taking over of the possession. Regarding the remaining land measuring 147 Kanals, 19 Marlas it was stated that possession had not been taken over.

4. The grievance made out by the appellants was that under the law, they are entitled to compound interest at the said rate and also they are entitled to interest qua the land measuring 147 Kanals, 19 Marlas as well.

5. It has been observed in the impugned judgment that the only remedy was of a reference under section 18 of the Land Acquisition Act, 1894 and the writ petition found to be not maintainable as it has been observed that the appellants accepted the award and received the amount.

6. It is but obvious that the provisions of section 34 of the Land Acquisition Act, 1894, as substituted by the West Pakistan Act No.III of 1969 escaped the notice of the learned Single Judge. The said provision of law lays down in mandatory terms that the Collector shall pay the amount awarded with compound interest therein at the rate of 8% per annum from the time of taking over possession until the amount has been paid or deposited. The proviso lays down that any waiver of the said right by the land owner shall be void and he shall be entitled to the said interest notwithstanding any agreement to the contrary. In view of the said clear statutory provisions, the appellants had only prayed for a direction to the respondents to act in accordance with the said law. In fact to our mind, this was by all means a clerical error liable to be corrected by the LAC himself in terms of section 12-A of the Land Acquisition Act, 1894. However, the prayer regarding the remaining land being disputed cannot be adjudicated upon in these proceedings.

7. The ICA is accordingly partly allowed inasmuch as the respondents are directed to pay compound interest on the amount determined by the Land Acquisition Collector in award dated 28-9-2005. (Annex-B to the writ petition) in respect of 223 kanals 11 marlas of land at the rate of 8% per annum from 10-7-1999 to 28-9-2005. No order as to costs. M.B.A./M-462/L Appeal partly allowed.