Law: Land Acquisition Act, 1894

Section: 54,23(2),28A,34

(a) Land Acquisition Act (I of 1894)--- ----S. 54---Land acquisition---Compensation, award of---Appellant-company, for whom the land was acquired, was aggrieved of the enhancement of compensation by the Referee Court and hence filed an appeal before the High Court---Maintainability---Such an appeal was maintainable in terms of section 54 of the Land Acquisition Act, 1894. (b) Land Acquisition Act (I of 1894)--- ----Ss. 23(2) & 28A & 34---Land acquisition---Compensation, quantum of---Compulsory charges and additional compensation---Acquisition of land in favour of appellant-company for a public purpose---Referee Court enhanced the compensation from Rs. 95,000/- per acre to Rs. 120,000/- per acre---Propriety---Appellant-company itself leased and used the acquired-property before it was acquired---Since the appellant-company negotiated and set the rent, the possibility for manipulation of the potential value of the demised property would be minimal---Furthermore, the time period that had lapsed between the issuance of Section 4 notification and the passing of the Award in 'respect of the acquired-property that was already leased by the appellant-company does not render the amount of compensation adjudged to be unreasonable---Compensation for the property being acquired must not only be based on its market value but also the potential value thereof---In the peculiar circumstances of the present case, the compensation adjudged appears to have been reasonably determined---In the present case, the notification issued under Section 4 of the Act, declared the acquisition to be made for a 'public purpose', and thus, the compensation awarded to the landowners requires correction---Accordingly, the compulsory charges payable by the appellant-company to the respondents/landowners is reduced from 25% to 15% of the market value of the acquired-property---Moreover section 28A of the Land Acquisition Act, 1894, has been omitted through Section 4 of the Land Acquisition (Sindh Amendment) Act, 2009 (Act XVI of 2010)---Thus, it would be safe to state that in view of the present legislative dispensation, the appellant-company cannot be burdened with the payment of…

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