Landowners Who Accepted Acquisition Compensation Cannot Later Claim Enhanced Amount: FCC
ISLAMABAD, (APP – UrduPoint / Pakistan Point News – 20th Aug, 2026) The Federal Constitutional Court (FCC) has ruled that landowners who accepted compensation in accordance with the law at the time their land was acquired are not entitled to additional compensation even if the land’s value increased later.
The court stated that a Supreme Court judgment ordering enhanced compensation for such landowners was contrary to the law. It also overturned judgments from the Supreme Court, Peshawar High Court, and Lahore High Court regarding compensation for land acquired for public purposes.
A 45-page judgment authored by Chief Justice of the Federal Constitutional Court, Justice Amin-ud-Din Khan, was issued in this case. Justice Syed Arshad Hussain Shah contributed an additional note, while Justice Ali Baqar Najafi agreed with the ruling.
The court emphasized that compulsory land acquisition must be accompanied by fair compensation as per the law. It held that ensuring uniform compensation for all landowners is a responsibility of the legislature, while courts are tasked with enforcing the law.
In his separate note, Justice Syed Arshad Hussain Shah clarified that any additional amounts already paid to landowners would not be recovered.
According to the judgment, the land in question was acquired under the Land Acquisition Act, 1894, for various public purposes such as defense projects, educational institutions, grid stations, and motorways.
Some landowners sought enhanced compensation from the courts after the values of their properties increased. When compensation was subsequently raised, those who had already received compensation also filed lawsuits demanding the higher amount.
The high courts ruled in favor of these landowners and ordered additional payments. However, the Federal Constitutional Court held that landowners who had accepted compensation at the time of acquisition could not later claim an enhanced amount based on a subsequent rise in land value.
Consequently, the court set aside the controversial judgments and established that compensation lawfully received at the time of acquisition cannot be retroactively increased simply because other landowners secured higher compensation through litigation.
