LAHORE: The Lahore High Court has rejected a challenge of the military estate against the appreciation of the compensation money to be paid to the owners of Noor Mahal, a historical building in Bahawalpur, for the compulsory acquisition of the property.

The federation, through military estates officer of Multan Circle, approached the high court, questioning a consolidated judgment issued in 2017 by the senior civil judge of Bahawalpur.

The civil judge, being a referee court, had partly accepted the claims of the owners of the Noor Mahal and declared them entitled to get the value and price of the acquired property at the rate of Rs15,000 per marla, along with the compensation, as per their legal share from the acquired costs of building which was fixed at Rs25 million, instead of Rs10 million, 15 percent compulsory charges of acquisition and eight percent compound interest upon the enhanced value from the date of award till its payment.

The appellant/military estate officer sought restoration of the award announced by the Land Acquisition Collector/Assistant Commissioner, Bahawalpur in 1998.

Being not satisfied with the compensation, the landowners also filed cross-appeals seeking enhancement in the quantum of price and value of the acquired property despite an increase by the referee court.

The respondents include Sahibzada Dawood Khan Abbasi and other legal heirs of late Sir Sadiq Muhammad Khan Abbasi, the Ameer of Bahawalpur and inherited the Noor Mahal.

Dismissing the appeal, the judgement handed down by a two-judge bench said the referee court rightly took into consideration the potential value of the land by noting that the building of Noor Mahal was beautifully decorated and furnished with costly carpets, expensive chandeliers and big hanging frames on the walls, wooden work, carved floors and precious stone work that contributed towards its value on higher side in contrast to the other properties sold in the vicinity.

Justice Sajid Mehmood Sethi, who headed the bench, also authored the judgement and observed that the referee court considered the peculiar nature of the property, its cultural and historical background and the potential value, while fixing the value of the acquired land.

The judge ruled that the determination of the quantum of monetary compensation against compulsory acquisition of a property is dependent upon multiple factors, including the nature of the property, location, potential use in the context of zoning regulations, proximity to the area in vicinity, salability prospectus, market acceptability of the property in the context of demand and supply thereof, ready availability of the buyers, and above all readiness to pay realisable price of the property having peculiar features.

He said it is not disputed that Noor Mahal has a heritage aspect and the building manifests people’s and city’s collective identity.

“The acquisition was for a purpose and that is to preserve, protect and retain the originality of the asset having monumental significance,” the judge added.

The judge said the property in question may have frequent visitors, but few willing and serious buyers.

The judge noted that the respondents (owners) have been unable to convince the court to disbelieve the compensation determined by the referee court by producing evidence indicating a willing buyer(s) ready to pay a higher price.

The judge concluded that the referee court rightly appreciated the material evidence, facts of the case, law/rules and dictum laid down by the superior courts while passing the impugned decision.

“Learned counsel for the parties could not make out a case for interference by us in the impugned decision in exercise of appellate jurisdiction,” the judge maintained, dismissing the appeals. Justice Asim Hafeez was the other member of the division bench.

Published in Dawn, July 2nd, 2023