PLJ 2010 Lahore 498
[Rawalpindi Bench Rawalpindi]

Present: Asad Munir, J.

RAHM DAD and 7 others--Petitioners

versus

MANAGING DIRECTOR FAUJI FOUNDATION, RAWALPINDI and 2 others--Respondents

C.R.No. 424 of 2006, decided on 13.4.2010.

Punjab Land Acquisition Rules, 1983--

----R. 14(1)--General Clauses Act, 1897, Ss. 3(21) & 3(28)--Civil Procedure Code, (V of 1908), S. 115--Civil revision--Acquisition of land--Fauji Foundation, a charitable trust--Fauji Foundation vide conveyance deed sold and transferred the Textile Mills--Suit for possession of land was filed by petitioner--Textile Mills had abandoned the purpose for which land was acquired as the land was being split into residential plots--Purpose of land had been abandoned--Original owner--Suit was dismissed by Courts below--Challenge to--Applicable of Rule 4(1) where land had been acquired for any department of Govt. or local authority for a public purpose--Validity--Land in-question was acquired for Punjab Post-War Service Reconstruction Fund, which later became Fauji Foundation--Both Foundations were charitable trusts formed under Charitable Endowments Act, 1890, which do not fall within definition of Government or a local authority as given in Ss. 3(21) & 3(28) of General Clauses Act--Held: Petitioners cannot take the benefit of Rule 14 as it applies only where the land had been acquired by Govt. or local authority and it cannot extend to an acquisition of the land in favour of a company or other legal entity of a similar nature--Civil revision was dismissed.     [P. 501] A

Punjab Land Acquisition Rules, 1983--

----R. 14--Acquired land was utilized for more than 30 years for public purpose and then it was transferred to a company which was said to be utilizing it for purpose other than public purpose--Applicable of Rule 14 of Rules 1983--Validity--Rule 14 would apply if the land was never used for the public purpose for which it was acquired, but would not apply where the public purpose was abandoned after the land had been used for declared public purpose for a considerable period of time--Revision was dismissed.              [Pp. 501 & 502] B

2006 CLC 1, ref.

Punjab Land Acquisition Rules, 1983--

----R. 14--Acquisition of land for the purpose of Trust--Acquired land was transferred to textile mills--Purpose of land had been abandoned--Claim being original owner of land--Applicable of Rules 14 of Punjab Land Acquisition Rules--Rule 14 even when it is applicable does not provide for return of land to the original owners or their heirs but leaves it to the Govt. which might in its discretion return it to the original owners.  [P. 502] C

1992 MLD 2364, ref.

Punjab Land Acquisition Rules, 1983--

----R. 14--Land was acquired for trust--Acquired land was transferred to textile mills--Purpose of acquisition of land had been abandoned--As of right for return of land due to non-use of it for purpose it was acquired--Grievance of--Validity--Government in its discretion might return the land to its owners if it has abandoned the scheme for which it had been acquired but for that matter the petitioner ought to approach the Government straightaway and Govt. in its discretion may, if so wishes return the land to them on the condition it deems fit--Held: Petitioners were not entitled to the return of land acquired were in accordance with law and cannot be called into question on any ground--Revision was dismissed.             [P. 502] D & E

PLJ 2010 Lah. 49 & PLD 11993 SC 453, rel.

Mr. Mujeeb-ur-Rehman Kiyani, Advocate for Petitioner.

Date of hearing: 13.4.2010.

Order

The necessary facts as they emerge from a reading of this civil revision petition are that vide notified award dated October 24, 1952, land measuring 85 kanals 10 Marlas in the revenue estates of Gujarpur and Kala, Tehsil & District, Jhelum, was acquired for Fauji Textile Mills, Kala. The said acquisition was pursuant to an agreement dated October 24, 1952, between the Governor of Punjab, and the Treasurer, Charitable Endowments, Punjab, acting for and on behalf of the Punjab Postwar Services Reconstruction Fund, Lahore. The Punjab Post-War Services Reconstruction Fund, Lahore, appears to have been succeeded by Fauji Foundation, a charitable trust created under the Charitable Endowments Act, 1890. A textile mills was later set up on the acquired land by Fauji Foundation. After operating the textile mills until 05.1.1985, Fauji Foundation vide conveyance deed dated 05.1.1985 sold and transferred the textile mills including its land to Alliance Textile Mills Limited. Thereafter, on 31.7.1985 the petitioners filed a suit for possession of the land of the Fauji Textile Mills on the ground that Alliance Textile Mills Limited had abandoned the purpose for which the land was acquired as the land was being split into residential plots which were being sold. It was contended in the suit that since the purpose of the acquisition of land had been abandoned, the land had to revert back to the petitioners, being the original owners or their heirs, in view of Rule 14 of the Punjab Land Acquisition Rules, 1983. Vide judgment & decree dated 21.4.2001, the Civil Judge, Jhelum, dismissed the suit whereafter an appeal filed against the said judgment and decree was also dismissed by the Additional District Judge, Jhelum vide judgment & decree dated 06.5.2006.

2.  Now, by means of this civil revision, the petitioners assail the judgments and decrees dated 21.4.2001 and 6.5.2006 passed by the Civil Judge, Jhelum and Additional District Judge, Jhelum, respectively.

3.  It is contended by the learned counsel for the petitioner that the judgments of the Courts below have over-looked Rule 14 which clearly lays down that if the purpose for which the land is acquired is abandoned, the land must be returned to the original owners or their legal heirs. In support of his contention, the learned counsel has relied on Rana Ziladar Khan Vs. Province of Punjab through Collector Sialkot and others (PLJ 2010 Lahore 49) as well as Province of Punjab through Collector and other Vs. Saeed Ahmad & another (PLD 1993 S.C. 453). In order to appreciate the contention of the learned counsel, it would be necessary to examine if Rule 14 can be construed to be applicable to the present case. Rule 14 is reproduced below:--

14. (1) Where any land has been acquired for any Department of the Government or a local authority for a public purpose and it is proposed to abandon the same, it shall be handed over to the Collector who shall be responsible for the disposal of the same in accordance with the order of Govt.

(2) The disposal of land under sub-rule (1) shall be made by Government in its discretion, and its possession restored to the persons from whom it was acquired or to their heirs as under:--

(i)            Free of cost to the original owners or their heirs, if compensation for acquisition of land has not been paid.

(ii)           On refunding the amount paid as compensation less than 15 percent granted for compulsory acquisition, if the original landowners or their heirs have already received cash compensation in respect of their land. The price may be lowered, if necessary, on account of deterioration, or enhanced in the rare case of land having been improved by the use to which Government has put it.

(3) Where the original land-owners or their heirs where provided alternate land in lieu of their acquired land, such land shall not be restored to them but shall be utilized or disposed of by the Board of Revenue in accordance with the policy of the Government regarding disposal and alienation of lands."

4.  From a perusal of the aforesaid Rule 14(1), it is clear that Rule 14 has relevance and applies only where the land has been acquired for any department of the Government or a local authority for a public purpose. In the present case, the land in question was acquired for Punjab Post-War Services Reconstruction Fund, Lahore, which later became Fauji Foundation. From the record, it appears that both Punjab Post-War Services Reconstruction Fund, Lahore and the Fauji Foundation are charitable trusts formed under the Charitable Endowments Act, 1890, which do not fall within the definition of Government or a Local Authority as given in Section 3(21) and Section 3(28) of the General Clauses Act, 1897 . In this view of the matter, the petitioners cannot take the benefit of Rule 14 as it applies only where the land has been acquired by the Government or Local Authority and it cannot extend to an acquisition of the land in favour of a company or other legal entity of a similar nature.

5.  Even otherwise, it is doubtful that the Rule 14 remains applicable if the land is utilized for the public purpose for which it was acquired for sometime and then the purpose is abandoned. In the present case, the land was acquired in 1952 whereafter it was utilized for more than 30 years for the public purpose and then it was transferred to a company, which is said to be utilizing it for a purpose other than public purpose.  In  my  view,  Rule  14 would apply if the land is never used for the public purpose for which it is acquired, but will not apply where the public purpose is abandoned after the land has been used for the declared public purpose for a considerable period of time. In this regard, reference may be made to Rana Abdul Qadir etc. vs. Government of Pakistan, M/o Defence Production Division through Secretary Defence, Rawalpindi etc. (2006 CLC 01), wherein it was observed "that distinction need to be kept in view in the case of withdrawal from acquisition and where the acquisition is complete in all respects but the erstwhile landowner seek return of the land.

6.  In Rana Ziladar Khan Vs. Province of Punjab through Collector Sialkot and others, referred to by the learned counsel, the land was acquired by the Punjab Government to establish a colony but the scheme was abolished and the possession of the land also remained with the land owners. As such, neither the acquisition was complete nor was the land ever used for the public purpose for which it was acquired. Similarly, in Province of Punjab through Collector and others vs. Saeed Ahmad & another, supra, the land whose return was sought had been acquired by the Punjab Government for a building a highway. Both these cases relied upon by the learned counsel are thus distinguishable as the land sought to be returned was acquired for the Government which is not so in the instant case.

7.  In any case, Rule 14 even when it is applicable does not provide for return of the land to the original owners or their heirs but leaves it to the Government which may in its discretion return it to the said owners. I may refer to Bashir Ahmad Akhtar and others Vs. Collector, Land Acquisition and others 1992 MLD 2364 wherein it was observed that;

"The only grievance of the petitioners is that since the purpose of constructing cantonment on the acquired land has been abandoned, and that the purpose of acquisition having not been fulfilled their land should be returned to them. Learned counsel has failed to show any provision of law whereunder the petitioners are entitled, as of right, for return of their land due to non-use of it for the purpose it was acquired. In Rule 14 of the Punjab Land Acquisition Rules, 1983, it is stated that the Government in its discretion may return the land to its owners if it has abandoned the scheme for which it had been acquired but for that matter the petitioners ought to approach the Government straightaway and the Government in its discretion may, if so wishes, return the land to them on the condition it deems fit."

8.  In view of the foregoing discussion, the impugned judgments &  decrees of the Courts below that the petitioners are not entitled to the return of land acquired in 1952 are in accordance with law and cannot be called into question on any ground. Accordingly, this civil revision, having no merit, is dismissed in limine.

(R.A.)     Revision dismissed.