The Supreme Court of Pakistan has declared that while the state possesses the authority to acquire land for public purposes, it is constitutionally obligated to provide affected landowners with full, fair, and real compensation. This landmark ruling came in a 20-page verdict authored by Justice Muhammad Ali Mazhar, which dismissed all civil appeals filed by the Government of Khyber Pakhtunkhwa concerning compensation for land acquired for an irrigation canal project in Swabi.
Court Upholds Lower Courts' Decisions
The Supreme Court upheld the decisions of both the Reference Court and the Peshawar High Court, which had earlier ruled in favor of the landowners. The judgment emphasized that the value of acquired land cannot be determined solely based on official government rates. Instead, authorities must consider the land's prevailing market value, its potential use, and its future development prospects when assessing compensation.
Inflation and Delay Must Be Accounted For
The Court further observed that in cases where there is an extraordinary delay in the land acquisition process, any increase in land prices and the impact of inflation during the intervening period must also be reflected in the compensation. This ensures genuine financial justice for the affected landowners, the judgment noted.
Gold for Gold, Not Copper
Reaffirming a well-established principle, the Supreme Court stated that compensation for acquired land should be based on the concept of "gold for gold, not copper." This means that landowners must receive compensation that fully indemnifies them for their loss. The judgment stressed that although land acquisition serves a public purpose, achieving that objective cannot come at the cost of causing unfair financial loss to citizens.
Background of the Case
The case originated when landowners in Swabi challenged the compensation fixed by the government for land acquired for an irrigation canal project, arguing that it was inadequate. The Reference Court enhanced the compensation based on evidence, a decision subsequently upheld by the Peshawar High Court. The Khyber Pakhtunkhwa government challenged those rulings before the Supreme Court, but the apex court dismissed all appeals and maintained the judgments in favor of the landowners.
