In the Supreme Court of Pakistan 
(Appellate Jurisdiction) 
 
 
Present: 
Mr. Justice Anwar Zaheer Jamali, HCJ 
Mr. Justice Amir Hani Muslim 
Mr. Justice Umar Ata Bandial 
 
Civil Appeals No.1125 & 1126 of 2014. 
(On appeal from judgment of Lahore High Court, Rawalpindi Bench  
dated 10.4.2014, passed in RFAs No.144 & 145 of 2003, respectively) 
 
Sheikh Muhammad Ilyas Ahmed, etc   
 (in CA-1125/14) 
Hamid Bashir, etc   
  
 
 
(in CA-1126/14) 
…Appellants 
Versus 
Pakistan through Secretary Ministry of Defence, Islamabad, etc 
… Respondents 
For the appellant:  
Mr. Altaf Elahi Sheikh, Sr. ASC 
 
For the Federation: 
Mr. Sohail Mehmood, DAG. 
Sqd. Ldr. Farhat Rafiq. 
 
Date of hearing: 
 
29.10.2015 
 
JUDGMENT 
 
 
 
Anwar Zaheer Jamali, C.J. – For the reasons set out in the 
applications for condonation of delay, the delay in filing of these 
appeals is condoned and the appeals are taken up for hearing on merit. 
2. 
At the outset, learned ASC for the appellants has made a 
statement at the bar that in view of announcement of judgment by this 
Court today in connected Civil Appeals No.1120 to 1124 of 2014, the 
appellants are not pressing these appeals for seeking further 
enhancement in the amount of compensation, but only to the extent of 
non awarding of interest on the amount of compensation, as mandated 
C.A No.1125/2014, etc 
2
under section 34 of the Land Acquisition Act, 1894 (in short “the Act of 
1894”), which has been withheld for no valid reasons. 
3. 
A bare reading of above referred provision of the Act of 
1894 reveals that awarding of such interest is statutory in nature, which 
cannot be withheld. Thus, the appellants are fully entitled for grant of 
compound interest at the rate of eight percent per annum from the 
date of taking possession of acquired land till the date of payment of its 
compensation, but for no valid reasons, such relief has escaped the 
sight of the two Courts below. 
4. 
This being the position, these appeals are partly allowed to 
the extent that the appellants will also be entitled for compound 
interest at the rate of eight percent per annum from the date when 
possession of the acquired land was taken over from them till the time, 
compensation in terms of the impugned judgment dated 10.4.2014, is 
paid to them. 
 
 
 
 
 
Islamabad, 
29th October, 2015. 
Approved for reporting. 
تﻗادﺻ 
Chief Justice 
 
 
Judge 
 
 
Judge 
 
