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2004 SCMR 538

WAPDA VS AZAM KHAN

Petitioner: WAPDA VS Respondent: AZAM KHANHonorable Justice MUNIR A. SHEIKHCh. Muhammad Tariq,Muhammad Iqbal Khan

Court: Supreme Court of Pakistan

Full Judgment Text & Judicial Ruling

2004 S C M R 538

2004 S C M R 538

[Supreme Court of Pakistan]

Present: Munir A. Sheikh and Iftikhar Muhammad Chaudhry, JJ

WAPDA through Project Director‑‑‑Appellant

versus

AZAM KHAN and others‑‑‑Respondents

Civil Appeal No. 1391 of 2003, decided on 15th December, 2003.

(On appeal from the judgment dated 6‑2‑2001 of the Lahore High Court, Rawalpindi Bench passed in R. F. A. No. 12 of 1989).

Land Acquisition Act (I of 1894)‑‑‑

‑‑‑‑Ss.4 & 34‑‑‑Constitution of Pakistan (1973), Art.185‑‑‑Rate of compound interest‑‑‑Authorities disputed the rate of compound interest awarded under S.34 of Land Acquisition Act, 1894, which was fixed by High Court at Bank rate‑‑‑Appeal before Supreme Court was barred by 842 days‑‑‑Effect‑‑‑With, the consent of the parties, the compound interest on the awarded amount as per the terms of the judgment passed by High Court would be paid to the landowners at 8% instead of profit rate of the Bank‑‑‑Supreme Court amended the judgment of High Court accordingly.

Ch. Muhammad Tariq, Advocate Supreme Court and M.A. Zaidi, Advocate‑on‑Record for Appellant.

Muhammad Iqbal Khan, Advocate Supreme Court and Imtiaz Muhammad Khan, Advocate‑on‑Record for Respondents.

Date of hearing: 15th December, 2003.

JUDGMENT

MUNIR A. SHEIKH, J.‑‑‑Today, Civil Miscellaneous application for stay is fixed. Learned counsel for the parties are ready to argue the appeal as short questions are involved:

2. This appeal is directed against the judgment dated 6‑2‑2001 of a Division Bench of the Lahore High Court, Rawalpindi Bench, Rawalpindi through which regular first appeal filed by the respondents in acquisition proceedings was accepted and it has been ordered that interest shall be paid on the compensation awarded to the respondents from the date of notification issued under section 4 of the Land Acquisition Act and the same should also be paid at the profit rate of the National Bank of Pakistan.

3. This appeal is barred by 842 days. Learned counsel for the appellant says that since the judgment on the said two points is void ab initio, for under the provisions of the Land Acquisition Act, the interest is payable from the date of delivery of possession of the land after acquisition and not from the date of notification under section 4 of the Act and further under section 34 ibid, compound interest was payable at .the maximum rate of 8 % .

4. As to the first point, the same requires probe into fact whether the possession was taken over by the appellant simultaneously with the issuance of notification under section 4 or later on. Since the High Court has granted the interest from the date of notification under section 4, therefore, it shall be deemed to have been held that the possession was taken by the appellant simultaneously with the issuance of the said notification, therefore, the judgment is not void ab initio, as such, plea of bar of limitation is available qua the said plea.

5. As regard second contention, the remedy of the appellant was to make an application to the High Court for correction of the judgment because the same appears to be due to an accidental slip. Learned counsel for the respondents has no objection if the judgment is amended accordingly.

6. This appeal as observed above is barred by 842 days. The reasons given in the application seeking enlargement of time are not sufficient grounds for condonation of delay.

7. However, with the consent of the learned counsel for the respondents, it is observed that the compound interest on the awarded amount as per terms of the impugned judgment of the High Court shall be paid to the respondents at 8% instead of profit rate of National Bank of Pakistan. In the execution proceedings, the amount due as interest shall be calculated as if compound interest at the rate of 8% has been awarded to which extent the judgment of the High Court shall be deemed to have been amended. The Executing Court shall decide the matter expeditiously.

8. With the above, modifications, this appeal is disposed of.

9. No order as to costs.

M.H./W‑53/S Order accordingly.

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