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Compensation suit High court rejects MDA plea

2022-07-14
LAHORE: The Lahore High Court has observed that a suitfor recovery of compensation is maintainable when a property is acquired unlawfully or possessed without due process of acquisition and payment under the L and Acquisition Act 1894.

The Multan Development Authority (MDA) filed a civil revision petition before the court challenging two decisions by district courts wherein the authority was ordered to pay compensation to a person for illegally acquiring his property.

The individual pleaded that the authority had no right to construct a road without acquiring the property and payment of adequate compensation. It was alleged that the property was utilised by the MDA during the construction of a road after demolishing the wall of the house in defiance of a stay order.

It was argued that the authority with-out carrying out acquisition proceedings and payment of compensation deprived the owner of his property.

Dismissing the petition of the MDA, Justice Abid Hussain Chattha observes that the evaluation of the record proves that no acquisition proceedings were carried out by the authority regarding construction of the road. He notes that it was proved by the respondent (owner) that his property measuring seven kanal, two marla and 13 yards was utilised in the construction of the road which had not been acquired.

The judge says the assertion regarding demolition of the boundary wall of the house also proved. He further says the MDA also could not conclusively establish its right to build a road on land not owned by it or the government without acquisition or compensation in the notified area.

The judge observes that the respondent had been deprived of duecompensation since the initiation of the litigation in 1989. He says the decision to refer the matter to the collector for determination of due compensation would therefore, be unjust, unfair and in violation of the fundamental right of the respondent.

He observes it would tantamount to give a licence to the government or its instrumentalities to forcibly acquire properties without following due process of law.

The judge rules that where an acquiring agency usurps the right of a person by forcibly occupying his property, the aggrieved person may bring a suit for recovery of compensation in line with the principles of determination of compensation under the Land Acquisition Act since there is no mechanism to trigger the provisions of the Act to seek compensation after a forcible possession and consumption of property. Staff Reporter