Pakistan fiscal deficit falls to 22-year low

Pakistan’s Federal Constitutional Court (FCC) has overturned a 16-year-old Supreme Court ruling concerning land acquisition and claims for additional compensation, delivering a significant judgment on the legal rights of landowners. A three-member bench headed by FCC Chief Justice Amin-ud-Din Khan announced the decision on review petitions challenging the Supreme Court’s 2010 majority judgment. Justice Ali Baqar Najafi and Justice Syed Arshad Hussain Shah were also members of the bench. The 47-page judgment, authored by Chief Justice Amin-ud-Din Khan, held that parts of the Supreme Court’s earlier decision in the Sadaqat Ali Khan case were not legally sustainable. The court ruled that a landowner who accepts compensation without raising an objection cannot subsequently claim additional compensation. It also held that a landowner who fails to file a reference within the prescribed legal period cannot later seek additional compensation. Another important finding was that landowners who were not parties to earlier proceedings cannot automatically claim the benefit of higher compensation awarded to other landowners through court proceedings. The Federal Constitutional Court observed that the Land Acquisition Act, 1894 provides a comprehensive legal framework for land acquisition and determination of compensation. Anyone seeking additional compensation must follow the procedure established under the law. According to the judgment, once the prescribed period for legal proceedings expires, the award issued by the Land Acquisition Collector becomes final. Courts cannot use their powers to bypass mandatory statutory requirements. The court further clarified that the principle of equality under Article 25 of the Constitution cannot eliminate statutory limitation periods or mandatory legal conditions. Similarly, the power to do complete justice cannot be used to create a new legal right that does not exist under the relevant law. The Supreme Court’s 2010 majority ruling had extended the benefit of additional compensation to certain landowners who were not parties to the original proceedings. The National Highway Authority chairman and other authorities subsequently challenged the ruling through review petitions. The Federal Constitutional Court accepted the review petitions filed by the concerned authorities and also allowed related civil appeals. Decisions of the Peshawar and Lahore High Courts concerning additional compensation were consequently set aside, while the original orders of the Land Acquisition Collectors and other competent authorities were restored. However, Justice Syed Arshad Hussain Shah’s additional note clarified that additional compensation already paid in good faith under the earlier judgment cannot be recovered. Recovery would not be permissible where the money was obtained without fraud, misrepresentation or an unlawful method. The ruling could have significant implications for future land acquisition and compensation disputes by emphasizing statutory procedures, legal deadlines and the finality of compensation awards.