Interpreting Paid and Deposited Pursuant to Section 34 of the Land Acquisition Act of 1894: A Legal and Judicial Analysis

Abstract

The paper will discuss the law and the judicial interpretation of the sections 31 and 34 of the Land Acquisition Act of 1894 in Pakistan regarding payment of compensation amount to persons interested/land owners on a timely manner. It brings forth legal difference between paid and deposited compensation amounts; where direct payment can be made, the former (paid) compensation is tendered, whereas the latter (deposited) is brought to the competent Court. Section 34 charges penal interest (8% compound in Punjab, 6% simple in KPK and Sindh, whereas 15% simple in Balochistan under section 28) to protect landowners/persons interested on account of delayed payment of compensation amount. By studying the changes in the legislation, procedures and apposite case law, the article shows that internal transfers of funds to the Treasury do not exempt the Acquiring Agency or Acquiring Authority of interest liability. The paper also highlights the practical implications of delayed compensation, such as financial costs to the exchequer, and offers suggestions on how to ensure that awards are made in time, that the statutory requirements are adhered to, and the capacity building of Land Acquisition officers/officials. Finally, the article underlines that effective application of the Sections 31 and 34 is necessary to fulfill the constitutional right to property, to provide the affected landowners/persons interested with the necessary justice, and the Acquiring Agency fiscal liabilities to the minimum.