Law: Land Acquisition Act, 1894

Section: 28

Land Acquisition Act (I of 1894)--- ----S. 28 [as amended by the Land Acquisition (Amendment) Ordinance, 2001 (Khyber Pakhtunkhwa)]---Payment of rent (formerly interest) on excess compensation---In terms of amended section 28 of the Land Acquisition Act, 1894 (as applicable in Khyber Pakhtunkhwa) Court is free to award any rate of rent on the enhanced sum of compensation and is not bound by the limit of 6%---However, it does not mean that the court is not to grant any rent on the sum enhanced---Distinction between the terms sum and amount to be determined is that while the “sum” is simply the enhanced compensation, the “amount” is the rent over and above the enhanced compensation to provide for the loss caused to the landowner due to the delay in making payment of the adequate compensation since the taking over of the possession of the land---Under section 28 of the Land Acquisition Act, 1894, a Referee Court can, and should, add the sum of actual fair market rental value of the land found acquired unpaid (or deficiently paid) if it is proved by evidence on record or, in absence of such evidence, a sum equal to 6% per annum of the enhanced sum of compensation as the minimum rental value of that land, from the date of taking possession of the acquired land to the date of actual payment of the enhanced price/compensation to the landowner. Aslam Khaki v. Muhammad Hashim PLD 2000 SC 225 and Government of Khyber Pakhtunkhwa v. Misal Khan (C.R.Ps. Nos.758 of 2019 and other) ref. JUDGMENT UMAR ATA BANDIAL, J.---The only question agitated by the parties before us is: How is a Referee Court to determine the amount to be deposited by the Collector, under the amended provisions of section 28 of the Khyber Pakhtunkhwa Land Acquisition Act 1894 ("Act")? Whether the amount is only that sum which, in the opinion of the Referee Court, the Collector ought to have awarded as compensation or it includes some other sum also, such as, interest or rent etc. 2. The learned Additional Advocate-General of Khyber Palchtunkhwa, appearing for the appellants, has contended that the phrase in the original text of section 28 that authorized the Referee Court to add 6% per annum interest on…

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