The Constitution of Pakistan, 1973 recognizes the fundamental right to acquire, hold and

dispose of private property in any part of Pakistan, but law can impose reasonable
restrictions in the public interest.
Article 23 of the Constitution reads: ‘Every citizen shall have the right to acquire, hold
and dispose of property in any part of Pakistan, subject to the Constitution and any
reasonable restrictions imposed by law in the public interest.’
No person shall be deprived of his property save in accordance with law.
No property shall be compulsorily acquired or taken possession of save for public
purpose, and save by the authority of law which provides for compensation therefore and
either fixes the amount of compensation or specifies the principles on and the manner in
which compensation is to be determined and given.
Art 24 of the Constitution of Islamic Republic of Pakistan.
24. Protection of property rights.
(1) No person shall be compulsorily deprived of his property save in accordance with law.
(2) No property shall be compulsorily acquired or taken possession of save for a public
purpose, and save by the authority of law which provides for compensation therefore and
either fixes the amount of compensation or specifies the principles on and the manner in
which compensation is to be determined and given.
(3) Nothing in this Article shall affect the validity of :-
(a) any law permitting the compulsory acquisition or taking possession of any property
for preventing danger to life, property or public health; or
(b) any law permitting the taking over of any property which has been acquired by, or
come into the possession of, any person by any unfair means, or in any manner, contrary
to law; or
(c) any law relating to the acquisition, administration or disposal of any property which is
or is deemed to be enemy property or evacuee property under any law (not being property
which has ceased to be evacuee property under any law); or
(d) any law providing for the taking over of the management of any property by the State
for a limited period, either in the public interest or in order to secure the proper
management of the property, or for the benefit of its owner; or
(e) any law providing for the acquisition of any class of property for the purpose of
(i) providing education and medical aid to all or any specified class of citizens or
(ii) providing housing and public facilities and services such as roads, water supply,
sewerage, gas and electric power to all or any specified class of citizens; or
(iii) providing maintenance to those who, on account of unemployment, sickness,
infirmity or old age, are unable to maintain themselves ; or
(f) any existing law or any law made in pursuance of Article 253.
(4) The adequacy or otherwise of any compensation provided for by any such law as is
referred to in this Article, or determined in pursuance thereof, shall not be called in
question in any court.
"Salus populi suprema lex esto" that the interests of public are supreme and that the
private interests are subordinate to the interests of the State. A Latin legal maxim that
translates to "the safety or welfare of the people shall be the supreme law." Water And
Power Development Authority, Lahore v. Qamar Ud Din
SECTION 3: DEFINITIONS
In this Act, unless the context requires otherwise:
(a) “Land”
Includes any benefits arising from land, and anything attached to or permanently fastened
to the earth.
(b) “Person interested”
All persons claiming an interest in compensation for land acquisition. A person is
“interested in land” if they hold, or claim, an easement (right of way, water-right, etc.)
over that land.
(c) “Collector”
The Collector of a District under the Punjab Land Revenue Act, 1967 (XVII of 1967).
Also includes any officer the Board of Revenue or the Commissioner appoints for
acquisition purposes.
(cc) “Commissioner”
The Commissioner of a Division under the Punjab Land Revenue Act, 1967 (XVII of
1967).
Also includes any Additional Commissioner.
(d) “Court”
Any principal Civil Court of original jurisdiction.
Includes any Additional District Judge or Civil Judge the Provincial Government
appoints (by name or office) to exercise the Court’s functions under this Act, up to that
judge’s pecuniary limit.
(e) “Company”
A Company registered under the Companies Ordinance, 1984, or under the English
Companies Acts (1862–1890), or incorporated by a U.K. Act of Parliament or a Pakistan
law, or by Royal Charter/Letters Patent.
Also includes:
A society registered under the Societies Registration Act, 1860, and
A Registered Society as defined in the Co-operative Societies Act, 1912.
(f) “Public purpose”
Includes providing village-sites in districts where the Provincial Government has
notified, in the Official Gazette, that it is customary for the Government to do so.
(g) “Persons entitled to act”
1. Trustees — If someone holds property for others’ benefit, the trustees act as those
persons’ representatives.
2. Married women (where English law applies) — Count as if unmarried and of full
age.
3. Guardians or appointed managers — Guardians of minors and committees/managers
of lunatics or idiots act in place of the disabled person.
Provided that:
(i) No one may act if their interest in the land is shown to be adverse to the person they
claim to represent.
(ii) If a person who would act does not appear, they may be represented by a “next
friend”; if no next friend appears, the Collector or Court must appoint a guardian ad litem
to act on that person’s behalf.
(iii) Chapter XXXI of the Code of Civil Procedure (on “next friend” and “guardian for
the case”) applies, with necessary changes, to anyone appearing before a Collector or
Court under this Act.
(iv) No “person entitled to act” may receive or discharge the compensation unless they
themselves have the capacity to sell the land and give a valid receipt for its purchase‐
price.
4. Publication of Preliminary Notification & Entry for Survey
1. If the Collector believes land is (or will be) required for a public purpose or Company.
o Gazette: Publish a preliminary notification.
o Local: Post public notices in the locality.
2. Survey Powers: Any officer either generally or specially authorized by the Collector
(and their agents) may:
a. enter upon and survey and take levels of any land in such locality
b. Dig/ bore into subsoil;
c. Ascertain land’s suitability;
d. Mark boundaries and proposed works;
e. Mark levels or boundaries, cut trenches;
f. Clear crops/fences/jungle if essential for survey.
Proviso: To enter a dwelling’s enclosed court/garden—must give 7 days’ written notice
to occupier.
3. Compensation on Entry:
o Officer must pay/tender for all damage at time of entry.
o If dispute arises, then refer immediately to the Collector (or chief revenue
officer); their decision is final.

Section 5: Notification for Land Acquisition (Public Purpose or Company)

When is Notification Issued?
Public Purpose: The Commissioner must be satisfied (after reviewing the survey
results under Section 4(2) or without a survey if unnecessary).
Company: The Provincial Government must be satisfied (same process as above).
Trigger: Specific land within a pre-notified locality (under Section 4(1)) is
confirmed as needed for the stated purpose.
Content of the Notification:
Published in the Official Gazette with:
Location: District/territorial division where the land lies.
 Purpose: Public purpose (e.g., highway, school) or Company (e.g., factory,
infrastructure).
Details: Approximate area, situation (e.g., plot number, boundaries).
Plan Accessibility: If a land plan exists, mention where it can be inspected
(e.g., Collector’s office).
Public Notice:
The Collector must issue a public notice summarizing the notification:
Displayed on/near the land (e.g., village noticeboard, local offices).
Ensures affected parties (owners, tenants) are informed.

5A. Hearing of Objections

(1) Any person interested in any land which has been notified under section 5 as being
needed for a public purpose or for a Company may, within thirty days after the issue
of the notification, object to the acquisition of the land or of any land in the locality,
as the case may be.
2) How to Object:
In writing to the Collector.
Collector must hear objector (in person or by pleader).
Collector may make further inquiries.
Collector submits objections, record proceedings, make recommendations to the
Commissioner.
Commissioner’s Decision: Final on objections.
Company Land: Collector also advises on the reasonable area to acquire for Company.
“Interested person” = one who would be entitled to compensation if acquisition proceeds.
1984 SCMR 1196: Limitation will start from the date the notice was served and not when
the decision was made.
6. Declaration of Intended Acquisition
1. When the Commissioner, after considering any report under s. 5A(2), is satisfied
that specific land is required for a public purpose or Company, he (or an
authorized officer) makes a formal declaration.
 o Condition: Declaration only if compensation will be paid by a Company,
public revenue, or a local‐authority–controlled fund.
2. Publication: The declaration is published in the Gazette, stating:
o District/territorial division
o Purpose
o Approximate area
o Plan inspection location (if a plan exists)
3. Conclusive Proof: This declaration is conclusive evidence that the land is needed.
4. If the declared area is smaller than the area earlier notified under s. 4(1), the earlier
notification is superseded to the extent of the excess.

7. Collector’s Directive to Acquire

Whenever any land shall have been so declared to be needed for a public purpose or for a
Company, the Commissioner (or authorized officer) directs the Collector to proceed with
acquisition.

8. Marking, Measuring & Planning

The Collector must ensure the land is:
a. Marked out (if not already under s. 4)
b. Measured
c. Planned (if no plan is made as yet)

9. Notice to Interested Persons (About measurement and compensation)

1. Public notice: Collector posts at convenient spots on/near the land that
Government intends to take possession and invites compensation claims.
2. Contents & timing: Notice must detail the land and require all interested persons
to appear (in person or by agent) before the Collector at a specified time/place
(within15 days after publication), stating:
o Their interest in the land
o The amount & particulars of their compensation claim
 o Any objections to the measurements under s. 8
o The Collector may insist these statements be in writing & signed.
3. Personal service within district: Collector also serves the occupier and all
known/interested persons (or their authorised agents) resident or with agents in the
same revenue district.
4. Distant persons: If an interested person lives elsewhere without an agent, the
notice is sent by registered post to their last known address.
5. Company/Government notice: Collector also serves, ≥ 15 days before the claims
deadline, the relevant Government department, local authority, or Company,
requiring them to depute an authorised representative to attend the s. 11 enquiry
and lodge objections.

10. Power to Enforce Statements of Interest

1. Requisitioned statement: Collector may require any interested person to submit,
within 15 days after requisition, a written statement listing, for the preceding three
years:
o Names of all others with any interest (co-proprietor, sub-proprietor, mortgagee,
tenant, etc.) in the land or any part;
o The nature of each interest;
o Rents & profits received or receivable on account of those interests.
2. Penal obligation: Anyone so required is legally bound to comply, under ss. 175–176
of the Pakistan Penal Code.
Enquiry into measurements, value and claims and award by the Collector.
11. Enquiry & Award by Collector
On the day so fixed, or on any other day to which the enquiry has been adjourned, the
Collector shall proceed to enquire into the objections (if any) which any person interested
has stated pursuant to a notice given under section s. 9(2).
Objections to land measurements (s. 8).
Land value as of the notification date (s. 4(1)).
Each claimant’s interest in the land.
Then, Collector shall make a signed award specifying:
(i) True area of the land;
(ii) Compensation amount;
(iii) Apportionment of compensation among all known/claimed interested persons,
whether or not they have respectively appeared before him.
Sec. 11-A: No acquisition through private negotiation by a company except with written
request of head of department concerned
Section 11-B: Process of acquisition to be completed within 6 months from the date of
notification u/s 4
Delay to be justified by Collector, otherwise s/he may be personally responsible and
liable

12. Collector’s Award Finality

1. Filing & Effect: Award filed in Collector’s office is final and conclusive evidence
between Collector and all interested persons, whether they appeared or not, on
area, value, and apportionment.
2. Notice: Collector must immediately notify any interested person absent (in person
or by agent) when the award is made.
3. Correction of Mistakes (12-A): Any clerical or arithmetic error in the award may
be corrected by the Collector at any time, suo moto or on party application.

13. Adjournment of Enquiry

Collector may adjourn the enquiry for any cause he thinks fit, fixing a new date.

14. Power to summon and enforce attendance of witnesses and production of

documents
For enquiries, Collector has the same powers as a Civil Court under the Civil Procedure
Code to:
 Summon & enforce attendance of witnesses (including interested parties).
 Compel production of documents.
15. Matters to Guide Compensation
In fixing compensation, Collector shall be guided by the provisions set out in Sections 23
& 24
23. Matters to be considered in determining compensation
1. In determining the amount of compensation to be awarded for land acquired under
this Act, the Court shall take into consideration
 Market Value at date of preliminary notification (s. 4(1)): what the land would
fetch in open market.
 Damages for:

o Loss of trees, crops

o Severance (land split by new works)
o Injury to other property of the claimant
o Change of residence or business relocation costs
o Diminution of profits between notification (s. 6) and possession
2.Solatium (Mandatory)
o + 15% of market value for compulsory acquisition for public purpose (s. 23(2))
o a sum of twenty-five per centum on such market-value if the acquisition has
been made for a Company
 Muhammad Miskeen v. Azad Government Of The State Of Jammu And
Kashmir
Province of Punjab through Collector, Bahawalpur v. Abdul Majeed, It was held in
both the cases that one year's average sale price in the relevant vicinity is only one of the
relevant factors for consideration in determining the market value of the acquired land
and if there is other evidence on record to establish potential value of acquired land at the
higher rate it has to be duly considered.
Comdr. Faiz Ellahi v. Multan Improvement Trust, Multan: Held by the Supreme Court
that Court has power to examine the inflationary trend and depreciation in currency.
 Province Of Punjab v. Malik Altaf Ahmed/ Nawabzada Muhammad Saeed Khan
v. The Collector:
The inflationary trends and depreciation in currency of the country m between the date of
acquisition under Section 4 of the Act and the date of award also should not be totally
ignored and be taken into consideration.
  Government Of NWFP v. Muhammad Ayaz
Another principle of law is that the landowners should be paid the compensation and not
the price. One of the factors for determining market value would be the date of
notification under section 4 of the Land Acquisition Act. Market value of the property has
always to be determined with respect to the location, potentiality and the transactions of
similar land at the time of notification under section 4 of the Land Acquisition Act are
other factors which must be kept in mind while fixing the market value and the price
what a willing purchaser would pay to a willing seller should always be kept in mind.
 (2000 PSC SC (AJK) 771) Sale price of adjoining land
 Rehmat Jan v. Collector Land Acquisition
Market value includes both present potential and probable future uses, and comparable
sales of adjoining parcels are relevant and must be considered.

24. Matters to be neglected in determining compensation

But the Court shall not take into consideration,
o Degree of urgency of acquisition
o Landowner’s disinclination to part with the land
o Minor damage only if not trivial in context
o Damage relevant to the land’s new public use
o Increase in value due to acquisition itself
o Increase in value of other property of the claimant
o Improvements made by claimant after preliminary notification (s. 4)
Section 16. Power to take possession: When the Collector has made an award under
section 11, he may, subject to the provision of section 31, take possession of the land,
which shall thereupon vest absolutely in the Government free from all encumbrances.
Part III
Reference to Court and Procedure thereon
18. Reference of Objections to Court/Referee
Any interested person dissatisfied with the Collector’s award, by written application to
the Collector, require that the matter be referred by the Collector for the determination of
the Court.
What Grounds: Objection to
 Measurement of land
 Amount of compensation
 Person entitled to payment
 Apportionment among claimants
Collector must refer the matter for Court determination.
Limitation:
Person making application, if present, in person or by agent, when award was
made → 6 weeks from that date.
If absent → (a) 6 weeks from receipt of Collector’s notice under s. 12(2), or (b) 6
months from award, whichever period shall first expire.
2) Provincial Government (if not accepting award) → 6 months from award.
Sec.53: Unless this law says something different, the normal rules for handling civil court
cases also apply to any case heard under this specific law.
Ghulam Hassan v. Provincial Government
• Civil Courts retain inherent jurisdiction to adjudicate civil suits unless expressly or
impliedly barred by a Special Act. CPC Section 9 embodies “ubi jus ibi remedium”,
which means where there is a right, there is a remedy.
• It was held that, even where a statute creates special remedies, civil courts retain
jurisdiction to nullify an award if it is void for non-compliance with mandatory
provisions or if the statutory forum has acted mala fide or exceeded its jurisdiction.
• Furthermore, it was held that, section 5-A, section 18 & section 49 bar civil suits
only with respect to the specified objection procedures, not to challenge jurisdictional
ultra vires acts. Furthermore, Section 53 of the Land Acquisition Act preserves the right
to sue in Civil Courts for actions taken under the Act.
Appeal to High Court then to Supreme Court (Sec. 54)
A party aggrieved by any award (or any portion thereof) made by the Court under this Act
may appeal to the High Court, provided the appeal complies with the provisions of the
Code of Civil Procedure, 1908 governing appeals from original decrees.
From any decree that the High Court passes on such an appeal, a further appeal to the
Supreme Court is permissible, subject to the conditions laid down in section 110 and
Order XLV of the Code of Civil Procedure, 1908.
  2003 PLR (Pesh) 1735, Land acquired surrounded by new bus stand, other
constructed area compensation enhanced.
 CLC 2009 (Pesh) 79 (Enhancement by referee court found perfectly sound, appeal
dismissed)

 Amount shall not exceed claimed or less than awarded by collector (Sec.25),
1985 SCMR 45
 Court award shall be in form of judgment and deemed to be a decree. (Sec. 26)
 Costs (Sec. 27)
o Award shall state amount of costs and person(s) to pay the same.
o when award of collector is not upheld, costs shall ordinarily be paid by
collector, or by applicant as the case may be.
 Excess amount to be directed to be paid 6% per annum interest (Sec. 28)
Rules to be framed by provincial government (Sec. 55)
ACQUISITION OF LAND FOR COMPANIES
Section 38. Company may be authorised to enter and survey
(1) The Commissioner may authorise an officer of any Company that intends to acquire
land for its own purposes to exercise the same powers as a Revenue Officer would have
under section 4(2) of the Act.
(2) In that situation, whenever section 4 speaks of acquiring land “for such purpose,” read
it as “for the purposes of the Company.” Likewise, whenever section 4(3) refers to “the
officer,” read it as “the officer of the Company.”

Section 38-A. Industrial concern deemed Company for certain purposes

An industrial concern (not formally a Company) that ordinarily
employs ≥ 100 workmen and is owned by an individual or association of individuals—
and which seeks to acquire land to build workmen’s housing or provide directly
connected amenities—shall, for the land-acquisition rules in this Part, be treated as if it
were a Company. Accordingly, any reference to “Company”
in sections 5A, 6, 7, 17 and 50 also applies to that concern.

Section 39. Prior consent of Commissioner & execution of agreement

No land may be acquired for any Company under sections 6 to 37 (inclusive) unless:
(a) the Commissioner has given prior consent; and
(b) the Company has first executed the agreement required by section 41 with the
Provincial Government.

Section 40. Prior enquiry

(1) The Commissioner shall not give consent (per section 39) until he is satisfied either
based on the Collector’s section 5-A(2) report or by holding a fresh enquiry that one of
the following applies:
(a) The land is to be acquired for erecting workmen’s dwelling-houses or for providing
amenities directly connected therewith for that Company; or
(aa) The land is needed for constructing some building or work for a Company engaged
(or taking steps to engage) in an industry or work that serves a public purpose; or
(b) The land is needed for constructing some work (not necessarily industrial), and that
work is likely to be useful to the public; or
(c) The area of the land proposed for acquisition is reasonable for the stated purpose.
(2) The Commissioner shall appoint an officer to hold such an enquiry at a time & place
he specifies.
(3) That officer may—by summons, like a Civil Court under the Code of Civil Procedure
—compel witnesses to attend and produce documents.

Section 41. Agreement with Provincial Government

If, after considering the Collector’s sec. 5-A(2) report or the enquiry officer’s report
under § 40, the Commissioner is satisfied that the land is to be acquired for one of the
purposes in § 40(1)(a), (aa) or (b), then he must require the Company to enter, before any
acquisition by sections 6–37, into an agreement with the Provincial Government that
provides (to the Government’s satisfaction) for:
1. Payment to the Commissioner of the entire cost of acquisition;
2. Transfer of the land (upon payment) to the Company;
3. Terms on which the Company will hold the land;
4. Where acquisition is for workmen’s housing or related amenities:
(a) The time frame, conditions & manner in which the dwelling-houses or
amenities must be erected or provided; and
5. Where acquisition is for “some work” under § 40(1)(b):
(a) The time frame & conditions under which that work must be constructed &
maintained.

Section 42. Publication of agreement

Immediately after execution, every such Company–Government agreement must be
published in the Official Gazette. From that moment, the acquisition is deemed to be
made subject to (i.e., on the terms of) that agreement.

Section 43. Exceptions where Government is already bound to provide land

Sections 39 to 42 (inclusive) do not apply—and the corresponding provisions of the 1870
Act are treated as never having applied—to any Railway or other Company for which, by
a prior agreement, the Secretary of State for India in Council, the Secretary of State, the
Federal Government or any Provincial Government is (or was) already bound to provide
land.

Section 43-A. Restrictions on transfer, etc.

No Company whose land has been acquired under this Part may transfer that land or any
part by sale, mortgage, gift, lease or any other means without first obtaining the
Provincial Government’s prior sanction.

Section 44. How agreement with Railway Company may be proved

When land is acquired for a Railway Company and an agreement of the kind described
in § 43 is relied upon, proof may be given by producing a printed copy of that agreement,
provided it purports to have been printed by order of Government.
All costs to be paid by company (Sec. 50)
No stamp or fee is required on award or agreement. (Sec. 51)
For suit, a month notice is required (Sec. 52)
PREEMPTION
Javed Manzoor v. Member Board of Revenue
Revenue Courts vested with pre-emption jurisdiction may grant time to cure court-fee
deficiency even post-limitation, provided statute or procedural rules authorize it.
High Courts, under Art. 199, may quash orders for jurisdictional excess or illegality but
must not substitute their judgment for a legitimate discretionary exercise by a competent
court.

TENANCY
Shahadat & Others v. Sarfraz Khan & others
Under s. 77(3)(d) PTA, only those taraddadgars who personally sink the irrigation well
are occupancy tenants while others remain non-occupancy tenants.