Land Acquisition Act, 1894

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THE LAND ACQUISITION ACT, 1894 
 
 
 
 
CONTENTS 
 
PART I  
 
PRELIMINARY 
 
1. Short title, extent and commencement.  
 
2. [Repealed.] 
 
3.  Definitions. 
 
PART II  
 
ACQUISITION 
 
Preliminary Investigation 
 
4. Publication of preliminary notification and powers of officers thereupon. 
 
5. Payment for damage. 
Objections 
 
5A.  Hearing of objections. 
 
Declaration of intended Acquisition 
 
6. Declaration that land is required for a public purpose. 
 
7. After declaration Collector to take order for acquisition. 
 
8. Land to be marked out, measured and planned. 
 
9. Notice to persons interested. 
 
10. Power to require and enforce the making of statements as to names and interests. 
 
Enquiry  into Measurements, Value and Claims, and Award by the Collector 

 
 
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11. Enquiry and award by Collector. 
 
12. Award of Collector when to be final. 
 
12-A.  Correction of mistake. 
 
13. Adjournment of enquiry. 
 
14. Power to summon and enforce attendance of witnesses and production of 
documents. 
 
15.  Matters to be considered and neglected. 
 
Taking Possession 
 
16.  Power to take possession. 
 
17. Special powers in cases of urgency. 
 
PART III 
 
REFERENCE TO COURT AND PROCEDURE THEREON 
 
18. Reference to Court. 
 
19. Collector’s statement to the Court. 
 
20. Service of notice. 
 
21. Restriction on scope of proceedings. 
 
22. Proceedings to be in open Court. 
 
22-A.  Cross objection. 
 
23. Matters to be considered in determining compensation. 
 
24. Matters to be neglected in determining compensation. 
 
25. Rules as to amount of compensation. 
 
26. Form of awards. 
 
27. Costs. 
 
28. Collector may be directed to pay interest on excess compensation. 
 
 
PART IV  
 
 
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APPORTIONMENT OF COMPENSATION 
 
29. Particulars of apportionment to be specified. 
 
30. Dispute as to apportionment. 
 
PART V  
 
PAYMENT 
 
31. Payment of compensation or deposit of same in Court. 
 
32. Investment of money deposited in respect of lands belonging to persons incompetent 
to alienate. 
 
33. Investment of money deposited in other cases. 
 
34. Payment of interest. 
 
PART VI 
 
TEMPORARY OCCUPATION OF LAND 
 
35. Temporary occupation of waste or arable land. 
Procedure when difference as to compensation exists. 
 
36. Power to enter and take possession, and compensation on restoration. 
 
37. Difference as to condition of land. 
 
PART VII 
 
ACQUISITION OF LAND FOR COMPANIES 
 
38. Company may be authorised to enter and survey. 
 
38A. Industrial concern to be deemed Company for certain purposes. 
 
39. Previous consent of Provincial Government and execution of agreement necessar y. 
 
40. Previous enquiry. 
 
41. Agreement with Provincial Government. 
 
42. Publication of agreement. 
 
43. Sections 39 to 42 not to apply where Government bound by agreement to provide 
land for Companies. 
43-A.  Restrictions on transfer, etc. 
 
 
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44. How agreement with Railway Company may be proved. 
 
PART VIII  
 
MISCELLANEOUS 
 
45. Service of notices. 
 
46. Penalty for obstructing acquisition of land. 
 
47. Magistrate to enforce surrender. 
 
48. Completion of acquisition not compulsory, but compensation to be awarded when 
not completed. 
 
49. Acquisition of part of house or building. 
 
50. Acquisition of land at cost of a local authority or Company. 
 
51. Exemption from stamp-duty and fees. 
 
52. Notice in case of suits for anything done in pursuance of Act. 
 
53. Code of Civil Procedure to apply to proceedings before Court. 
 
54. Appeals in proceedings before Court. 
 
55. Power to make rules. 
  
 
 
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THE LAND ACQUISITION ACT, 1894 
 
1ACT No. I OF 1894 
 
[2nd February, 1894] 
 
An Act to amend the law for the acquisition of land for public purposes and for Companies. 
 
WHEREAS it is expedient to amend the law for the acquisition of land needed for public 
purpose and for Companies and for determining the amount of compensation to be made on account 
of such acquisition; It is hereby enacted as follows:___ 
 
 
1For Statement of Objects and Reasons , see Gaz. of India, 1892, Pt. V., p. 32; for Report of the Select Committee, see ibid., 1894, Pt. V, P. 23 
and for Proceedings in Council, s ee ibid., 1892, Pt. VI, p. 25, and ibid., 1894, pp. 19, 24 to 42. 
 
This Act has been declared to be in force in Baluchistan by the British Baluchistan Laws Regulation, 1913 (2 of 1913), s. 3 and Sch. I. 
 
It has also been extended to the Leased Areas of Baluchistan, see the Leased Areas (Laws ) Order, 1950 (G.G.O. 3 of 1950); and applied in 
the Federated Areas of Baluchistan, see Gaz. Of India, 1937, Pt. I, p. 1499. 
 
It has been applied to Phulera in the Excluded Area of Upper Tanawal to the extent the Act is applicable in the N.W.F.P., subject to certain 
modifications, see N.W.F.P. (Upper Tanawal) (Excluded Area) Laws Regulation, 1950. 
 
It has been extended to the Excluded Area of Upper Tanawal other than Phulera by the N.W.F.P. (Upper Tanawal) (Excluded Area) Laws 
Regulation, 1950 and declared to be in force in that area with effect from 1s t June, 1951, see N.W.F.P. Gazette, Extraordinary, dated 1­6­51. 
 
It has been amended in the N.W.F.P. by the Land Acquisition (N.W.F.P. Amdt.) Act, 1947 (19 of 1947) and the Land Acquisition (N.W.F.P. 
Amdt.) Act, 1952, N.W.F.P. Act 9 of 1952. 
 
For modifications in this Act to make provision for the acquisition of land (i) in the Punjab, see the Punjab Town Improvement Act, 1922 
(Punjab 4 of 1922), s . 59 and Sch., and the Thal Development Act, 1949 (Punjab 15 of 1949), s. 35 and Sch., (ii) in Karachi, see the Karachi 
Improvement Trust Act, 1950 (48 of 1950), s  72 (a) and Sch. 
 
The Act has further been amended in its application to the Punjab by the Land Acquisition (Punjab Amdt.) Act, 1954 (Punjab Act, 12 of 
1954) and Punjab Soil Act, 1952 (12 and 21 of 1952), Sch. 
 
This Act, together with rules , if any, made thereunder as in force for the time being in the Punjab, s hall apply to the excluded areas of  Dera 
Ghazi Khan District, see Gaz. of Punjab, 1955, Ext., p. 373. 
 
This Act has also been amended in its application to the Province of Wes t Pakis tan (except the Capital of the Federation) by Wes t Pakis 
tan Act 16 of 1957, s . 3 (3) and 3rd Sch. (with effect from the 14th October, 1955). 
 
This act has also been amended in its application to the Federal Capital, by the Karachi Development Authority Order, 1957 (P.O. 5 of 
1957), Art. 95 and Sch.  
 
It has been amended in its application to the Province of Wes t Pakis tan by Wes t Pakis tan Act, 27 of 1958. 
 
This Act has further been amended in its application to the Province of Wes t Pakis tan by W.P. Ord. 1 of 1965 (with effect from the 13th 
February, 1965). 
 
The Act, as in force in the North­Wes t Frontier Province immediately before the commencement of N.W.F.P. Regulation No. II of 1974, has 
been applied to the Provincially Administered Tribal Areas of Chitral, Dir, Kalam, Swat and Malakand Protected Area, by N.W.F.P. Regulation No. II. 
of 1974, s. 3. 
 
This Act has also been amended in its application to the Province of West Pakistan, by W. P. Act. No. III of 1969, and by the W.P. 
Ordinance No. XLIX of 1969.  
 
This Act has been amended to the extent of Islamabad Capital Territory, see Ordinance No. 27 of 1981, s. 5 and 4th Sch. 
 
 
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PART I 
 
PRELIMINARY 
 
1. Short title, extent and commencement.___(1) This Act may be called the Land 
Acquisition  Act, 1894; 
 
1[(2) It extends to the whole of Pakistan] ; and 
 
(3) It shall come into force on the first day of March, 1894. 
 
2. [Repeal.] Rep. partly by the Repealing and Amending Act, 1914 (X of 1914), s. 3 and 
Schedule II, and partly by the Repealing Act, 1938 (I of 1938), s. 2 and Schedule. 
 
3. Definitions. In this Act, unless there is something repugnant in the subject or context,___  
 
(a)  the expression “land” includes benefits to arise out of land, and things attached 
to the earth or permanently fastened to anything attached to the earth: 
 
(b)  the expression “person interested” includes all persons claiming an interest in 
compensation to be made on account of  the acquisition of land under this Act; 
and a person shall be deemed to be interested in land if he is interested in an 
easement affecting the land: 
 
(c)  the expression “Collector” means the Collector of a district, and includes a  
Deputy Commissioner and any officer specially appointed by the 2[Provincial 
Government] to perform the functions of a Collector under this Act: 
 
3[(d)  the expression “Court” means a principal Civil Court of original jurisdiction, 
and includes the  Court of a ny Additional District Judge and any Civil Judge 
whom the Provincial Go vernment may appoint, by n ame or  by virtue of his 
office, to perform concurrently with any such principal Civil Court, all or any of 
the functions of the Court und er this Act, within a ny specified area; provided 
that in the case of a Civil Judge such functions shall be exercised only upto the 
limits of his pecuniary jurisdiction.] 
 
(e) the expression “Company” means a Company registered under the 4Indian 
Companies Act, 1882 (VI of 1882), or under the (English) Companies Acts, 
1862 to 1890, or incorporated by an Act of Parliament 5[of the United  
Kingdom] or 6[by 7[a Pakistan law]], or by Royal Charter or Letters 
Patent 8[and includes a society r egistered under the Societies 
Registration Act, 1860 (XXI of 1860), and a registered society within 
the meaning of the Co­operative Societies Act, 1912 (II of 1912)]: 
 
1Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (21 of 1960), s. 3 and 2nd Sch. (with effect from the 14th October, 1955), for 
the original sub­section (2), as amended by A.O., 1949, Arts . 3 (2) and 4. 
2Subs. by A. O., 1937, for “L. G.”. 
3Subs. by Ord. No. XLIX of 1969, s. 3. 
4See now the Companies Act, 1913 (7 of 1913). 
5Ins. by A.O., 1961, Art. 2 and Sch. (with effect from the 23rd March,1956). 
6The original words “of the G.G. in C.” were first subs . by A.O., 1937, and then amended by A.O., 1949, Sch., to read as above. 
7Subs. by Ord. XXVII of 1981, s . 5 and sch. IV (only to the extent of Islamabad Capital Territory). 
8Ins. by the Land Acquisition (Amdt.) Act, 1919 (17 of 1919), s. 2. 
 
 
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(f)  the expression “public purpose” includes the provision of village­sites in 
districts in which the 1[Provincial Government] shall have declared by 
notification in the official Gazette that it is customary for the 
Government to make such provision: and 
 
(g) the following persons shall be deemed persons “entitled to act” as and to 
the extent hereinafter provided (that is to say)___ 
 
trustees for other persons beneficially interested shall be deemed the 
persons entitled to act with reference to any such case, and that to the 
same extent as the persons beneficially interested could have acted if 
free from disability ; 2[and] 
 
2*             *            *            *            *            *            * 
 
the guardians of minors and the committees or managers of lunatics or 
idiots shall be deemed respectively the persons so entitled to act, to the 
same extent as the minors, lunatics or  idiots themselves, if free from 
disability, could have acted: 
 
Provided that.___ 
 
 
(i)  no person shall be deemed “entitled to act” whose interest in the 
subject­matter shall be  shown to the satisfaction of the Collector or 
Court to be adverse to the interest of the person interested for whom he 
would otherwise be entitled to act ; 
 
(ii)  in every such case the person interested may appear by a next friend or, 
in default of his appearance by a next friend, the Collector or Court, as 
the case may be, shall appoint a  guardian for the case to act on his 
behalf in the conduct thereof ; 
 
(iii)  the prov isions of 2[Order XXXII of the First Schedule to the Code of 
Civil Procedure, 1908  (Act V of 1908)]  shall, mutatis mutandis, apply 
in the case of persons interested appearing before a Collector or Court 
by a next friend, or by a guardian for the case, in proceedings under 
this Act ; and 
 
(iv) no person “entitled to act” shall be  competent to receive the 
compensation­money p ayable to the person for  whom he is entitled to act 
unless he would h ave been competent to alienate the land and receive and 
give a good discharge for the purchase­money on a voluntary sale. 
 
1Subs. by A.O., 1937, for “L. G.”. 
2Added, omitted and Subs. by Ord. XXVII of 1981, s . 5 and sch. IV (only to the extent of Islamabad Capital Territory). 
  
 
 
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PART II 
 
ACQUISITION 
 
Preliminary Investigation 
 
14. Publication of preliminary notification and powers of officers thereupon.___ 2[(1) 
Whenever it appears to the Collector of the district that land in any locality is needed or is likely to 
be needed for any public purpose or for a Company, a notification to that effect shall be published in 
the official Gazette, and the Collector shall cause public notice of the substance of such notification 
to be given at convenient places in the said locality.] 
 
(2) Thereupon it shall be lawful for any officer, either generally or specially authorised by 
such Government in this behalf, and for his servants and workmen,__ 
 
to enter upon and survey and take levels of any land in such locality ; 
 
to dig or bore into the subsoil ; 
 
to do all other acts necessary to ascertain whether the land is adapted for such purpose ; 
 
to set out the boundaries of the land proposed to be taken and the intended line of the work (if 
any) proposed to be made thereon ; 
 
to mark such levels, boundaries and line by placing marks and cutting trenches; and, 
 
 
where otherwise the survey cannot be completed and the levels taken and the boundaries and 
line marked, to cut down and clear away any part of any standing crop, fence or jungle: 
 
Provided that no person shall enter into any building or upon any enclosed court or garden 
attached to a dwelling­house (unless with the consent of the occupier thereof) without previously 
giving such occupier at least seven days’ notice in writing of his intention to do so 3[:] 
 
3[Provided further that entire process of land acquisition shall be completed within a period 
of one year failing which the notification made under sub-section (1) shall stand revoked.]. 
 
2[(3) The officer so authorised shall at the time of such entry pay or tender payment for all 
necessary damage to be done as aforesaid, and, in case of dispute as to the sufficiency of the amount so 
paid or tendered, he shall at once refer the dispute to the decision of the Collector or other chief revenue-
officer of the district, and such decision shall be final.] 
 
 
 
lAs to amendments with which this section should be read when land is required for the purposes of a Company, see s . 38 (2), infra. 
 
 A protected monument may be acquired under this Act as if its preservation were a “public purpose” within the meaning of the Act, see s. 
10 of the Ancient Monuments Preservation Act, 1904 (7 of 1904). 
 
2Subs. by Ord. No. XLIX of 1969, s. 4. 
 
3Subs. and ins. by the Land Acquisition (Amdt.) Act XXIII of 2017, s. 2. 
 
 
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1[5. Notification that particular land is needed for a public purpose or for a Company. 
Where land is to be acquired for a public purpose, if  the Commissioner, and where land is to be 
acquired for a Company, the Provincial Government, is satisfied, after considering the result of the 
survey, if any, made under sub-section (2) of section 4, or if no survey is necessary, at any time, that 
any particular land included in a locality notified under sub-section (1) of section 4 is needed for a 
public purpose or a Company, as the case may be, a notification to that effect shall be published in the 
official Gazette, stating the district or other territorial division in which the land is situate, the purpose 
for which it is needed, its approximate area and situation, and where a plan has been made of the land, 
the place where such plan may be inspected, and the Collector shall cause public notice to be given of 
the substance of the notification at convenient places on or near the land to be acquired.] 
 
2[Objections 
 
1[5A. Hearing of objections. (1) Any person interested in any land which has been 
notified under section 5 as being needed for a public purpose or for a Company may, within thirty 
days after the issue of the notification, object to the acquisition of the land or  of any land in the 
locality, as the case may be. 
 
(2) Every objection under sub-section (1) shall be made to the Collector in writing, and the 
Collector shall give the objector an opportunity of being heard either in person or by pleader and shall, 
after hearing all such objections and after making such further inquiry, if any, as he thinks necessary, 
submit the case for the decision of the Commissioner together with the record of the proceedings held by 
him and a report containing his recommendations on the objections. The decision of the Commissioner on 
the objections shall be final. 
(3) Where land is needed for a Company, the Collector shall, after making such enquiries as 
he deems necessary, also make his recommendations to the Commissioner with regard to the area 
that in his opinion is reasonable for the purpose.] 
(4) For the purpose of this section, a  person shall be  deemed to be interested in land w ho 
would be entitled to claim an interest in compensation if the land were acquired under this Act.] 
 
Declaration of intended Acquisition 
 
6. Declaration that land is required for a public purpose. (1) Subject to the provisions 
of Part VII of this Act, 3[when the 4[Provincial Government] is satisfied, after considering the report, 
if any, made under section 5A, sub­section (2),] that any particular land is needed for a public 
purpose, or for a Company, a 5declaration shall be made to that effect under the signature of a 
Secretary to such Government or of some officer duly authorised to certify its orders : 
 
Provided that no such declaration shall be made unless the compensation to be awarded for 
such property is to be paid by a Company, or wholly or partly out of pub lic revenues or some fund 
controlled or managed by a local authority. 
 
(2) The declaration shall be published in the official Gazette, and shall state the district or 
other territorial division in which the land is situate, the purpose for which it is need ed, its 
approximate area, and, where a plan shall have been made of the land, the place where such plan 
may be inspected. 
 
1Subs. by Ord. No. XLIX of 1969, ss. 5 and  6. 
2Sub­heading and section 5A ins. by the Land Acquisition (Amdt.) Act, 1923 (38 of 1923), s .3. 
3Subs. by the Land Acquisition (Amdt.) Act, 1923 (38 of 1923) , s .4, for “whenever it appears to the L. G.”. 
4Subs. by A.O., 1937, for “L. G.”. 
5For specimen, see Gaz. of P., 1953, Pt. I. p. 233 
 
 
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(3) The said declaration shall be conclusive evidence that the land is needed for a public 
purpose or for  a Company, as the case may be; and, after making such declaration, the 1[Provincial 
Government] may acquire the land in manner hereinafter appearing. 
 
2[(4) When  the area in respect of which the said declaration is made is less than the area 
previously notified under sub-section (1) of section 4, such previous notification, so far as it relates to 
the excess area, shall be deemed to have been superseded by the said declaration.] 
 
7. After declaration Collector to take order for acquisition .  Whenever any land shall 
have been so declared to be needed for a public purpose or for a Company, the 2[Provincial 
Government], or some officer authorised by the 2[Provincial Government] in this behalf,  shall direct 
the Collector to take order for the acquisition of the land. 
 
8. Land to be marked out, measured and planned. The Collector shall thereupon cause the 
land (unless it has been already marked out under section 4) to be marked out. He shall also  cause it 
to be measured, and if no plan has been made thereof, a plan to be made of the same. 
 
9. Notice to persons interested. ___(1) The Collector shall then cause public notice to be 
given at convenient places on or near the land to be taken stating that the Government intends to take 
possession of the land, and that claims to compensation for all interests in such land may be made to 
him. 
 
(2) Such notice shall state the particulars of the land so needed, and shall require all persons 
interested in the land to appear personally or by agent before the Collector at a time and place therein 
mentioned (such time not being earlier than fifteen days after the date of publication of the notice), 
and to state the nature of their respective interests in the la nd and the amount and particulars of their 
claims to compensation for such interests, and their objections  (if any) to the measurements made 
under section 8. The Collector may in any case require such statement to be made in writing and 
signed by the party or his agent. 
 
(3) The Collector shall also serve notice to the same effect on the occupier (if any) of such 
land and on all such persons known or believed to be interested therein, or to be entitled to act for 
persons so interested, as reside or have age nts authorised to receive service on their behalf, within 
the revenue­district in which the land is situate. 
 
(4) In case any person so interested resides elsewhere, and has no such, agent, the notice shall 
be sent to him by post in a letter addressed to h im at his last known residence, address or place of 
business and registered under 3[the Post Office Act, 1898 (VI of 1898)]. 
 
1[(5) The Collector shall also serve notice of the enquiry to be held under section 11 (such notice 
not being less than fifteen days prior to the date fixed under sub-section (2) for determination of claims 
and Objections) on the Department of Government, local authority or Company, as the case may be, for 
which land is being acquired, and require it to depute a duly authorised representative to attend the 
enquiry on its behalf for the purpose of making objections (if any) to the measurement of the land, claims 
to any interest in the land or the amount of any compensation. Such authorised representative shall be a 
party to the proceedings.] 
 
1Subs. by A.O., 1937, for “L.G.”. 
2Added by Ord. No. XLIX of 1969, ss. 7 and 8. 
3 Subs. by Ord. XXVII of 1981, s. 5 & Sch. IV (only to the extent of Islamabad Capital Territory). 
  
 
 
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10. Power to require and enforce the making of statements as to names and interests.— 
(1) The Collector may also require any such person to make or deliver to him, at a time and place 
mentioned (such time not being earlier than fifteen days after the date of the requisition), a statement 
containing, so far as may be practicable, the name of every other person possessing any interest in 
the land or any part thereof as co-proprietor, sub-proprietor, mortgagee, tenant or otherwise, and of 
the nature of such interest, and of the rents and profits (if any) received or receivable on account 
thereof for three years next preceding the date of the statement. 
 
(2) Every person required to make or deliver a statement under this section or section 9 shall 
be deemed to be legally bound to do so within the meaning of sections 175 and 176 of the Pakistan 
Penal Code (XLV of 1860). 
 
Enquiry into Measurements, Value and Claims, and Award by the Collector. 
 
11. Enquiry and award by Collector. On the day so fixed, or on any other day to which the 
enquiry has been adjourned, the Collector shall proceed to enquire into the objections (if any) which 
any person interested  1[and a Department of Government, a local authority, or a Company, as the 
case may be,] has stated pursuant to a notice given under section 9 to the measurements ma de under 
section 8, and into the value of the land 2[at the date of the publication of the notification under 
section 4, sub­section (1)], and into the respective interests of the persons claiming the compensation  
and shall make an award under his hand of  
 
(i)  the true area of the land; 
 
(ii)  the compensation which in his opinion should be allowed for the land; and 
 
(iii)  the apportionment of the said compensation among all the persons known or 
believed to be interested in the land, o f whom, or of whose claims, he has 
information, whether or not they have respectively appeared before him. 
 
12. Award of Collector when to be final .___(1) Such award shall be filed in the Collector ’s 
office and shall, except as hereinafter provided, be final and conclusive evidence, as between the 
Collector and the persons interested, whether they have respectively appeared before the Collector or 
not, of the true area and value of the land, and the apportionment of the compensation among the 
persons interested. 
 
(2) The Collector shall give immediate notice of his award to such of the persons interested 
as are not present personally or by their representatives when the award is made. 
 
1[12-A. C orrection of mistake. Any clerical or arithmetical mistake in the award arising 
therein from any accidental slip or omission may, at any time, be corrected by the Collector either of 
his own motion or on the application of any of the parties.] 
 
13. Adjourment of enquiry . The Collector may, for any cause  he thinks fit, from time to 
time adjourn the enquiry to a day to be fixed by him. 
 
14. Power to summon and enforce attendance of witnesses and production of 
documents.  For the purpose of enquiries under this Act the Collector shall have power to summon 
and enforce the attendance of witnesses, including the parties interested or any of them, and to 
compel the production of documents by the same means, and (so far as may be) in the same manner 
as is provided in the case of a Civil Court under the 3[Code of Civil Procedure, 1908 (Act V of 
1908)]. 
 
 
 
1Inserted by Ord. No. XLIX of 1969, s. 9 and 10. 
2Ins. by the Land Acquisition (Amdt.) Act, 1923 (38 of 1923), s. 5. 
3Subs. by Ord. XXVII of 1981, s. 5 & Sch. IV (only to the extent of Islamabad Capital Territory)  
 
 
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15. Matters to be considered and neglected. In determining the amount of compensation, 
the Collector shall be guided by the provision contained in sections 23 and 24. 
 
Taking possession 
 
16. Power to take possession . When the Collector has made an award under section 11, he 
may 1[, subject to the provision of section 30,] take possession of the land, which shall thereupon 
2[vest absolutely in the 3[Government]], free from all encumbrances. 
 
1[17. S pecial power in c ases of urgency. (1) In cases of u rgency, w henever  the 
Commissioner so directs, the Collector, though no such award has been made, may, on the expiration 
of fifteen days from publication of the notice mentioned in sub-section (1) of sec tion 9, take 
possession of any land needed for public purposes or for a Company. Such land shall thereupon vest 
absolutely in the Government, free from all encumbrances: 
 
Provided that the Com missioner shall not issue any direction to the Collector under this 
sub-section unless the Department of Government, the local authority, or Company, as the case may 
be, for which the land is being acquired, has first deposited the estimated cost of acquisition of such 
land as determined by the Collector of the district, keeping in view the provisions of sections 23 and 
24. 
 
(2) Whenever, owing to any sudden change in the channel of any navigable river or other 
unforeseen emergency, it becomes necessary for any Railway Administration to acquire the immediate 
possession of any land for the maintenance of their traffic or for the purpose of making thereon a river-
side or ghat station, or of providing convenient connection with or access to any such station, or 
whenever owing to a similar emergency it becomes necessary for the Commis sioner to acquire the 
immediate possession of any land for the purposes of maintaining traffic over a public road, the 
Collector may, immediately after the publication of the notice mentioned in sub-section (1) and with 
the previous sanction of the Commis sioner, enter upon and take possession of such land, which 
shall thereupon vest absolutely in the Government free from all encumbrances: 
 
Provided that the Co llector shall not take possession of any building or part of a building 
under this sub-section without giving to the occupier thereof at least forty-eight hours' notice of his 
intention so to do, or such longer notice as may be reasonably sufficient to enable such occupier to 
remove his movable property from such building without unnecessary inconvenience. 
 
(3) In every case under either of the preceding sub-sections the Collector shall at the time of 
taking possession offer to the persons interested compensation for the standing crops and trees (if 
any) on such land and for any other damage sustained by them caused by such sudden dispossession 
and not excepted in section 24; and, in case such offer is not accepted, the value of such crops and 
trees and the amount of such other damage shall be allowed for in awarding compensation for the 
land under the provisions herein contained.  
(4) In cases where in the opinion of the Commissioner, the provisions of sub-section (1) or 
sub-section (2) are applicable, the Commissioner may direct that the provisions of sections 5 
and 5-A shall not apply, and, if he does so direct, a declaration may be made under section 6 in 
respect of the land at any time after the publication of the notification under sub- section (1) of  
section 4.] 
 
 
 
1Inserted & subs. by Ord. No. XLIX of 1969, ss. 11 & 12.  
2Subs. by A.O., 1937, for “vest absolutely in the Govt.”. 
3Subs. by A.O., 1961, Art. 2, for “Crown” (with effect from the 23th March, 1956). 
 
 
 
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PART III 
 
REFERENCE TO COURT AND PROCEDURE THEREON 
 
18. Reference to Court.__(1) Any person interested who has not accepted the award may, by  
written application to the Collector, require that the matter be referred by the Collector for the 
determination of the Court, whether his objection be to the measurement of the land, the amount of 
the compensation, the persons to whom it is payable, or the apportionment of the compensation 
among the persons interested. 
 
(2) The application shall state the grounds on which objection to the award is taken:  
 
Provided that every such application shall be made,___ 
 
(a) if the person making it was present or represented before the Collector at the time 
when he made his award, within six weeks from the date of the Collector’s award; 
 
(b) in other cases, within six weeks of the receipt of the notice from the Collector under 
section 12, sub­section (2) or within six months from the date of the Collecto r’s 
award, whichever period shall first expire1. 
 
2[(3) Notwithstanding anything to the contrary contained in section 21, the Provincial 
Government may, if it has not accepted the award, refer the matter to the Court within a period of six 
months from the date of announcement of the award; provided that the Court shall not 
entertain the reference unless in its opinion there is a prima facie case for inquiry into and 
determination of the objection against the award.] 
 
 
19. Collector ’s statement to the Court .___(1) In making the reference, the Collector shall 
state for the information of the Court, in writing under his hand,___ 
 
(a)  the situation and extent of the land, with particulars of any trees, buildings or standing 
crops thereon; 
 
(b)  the names of the persons whom he has reason to think interested in such land; 
 
(c)  the amount awarded for damages and paid or tendered under sections 5 and 17, or 
either of them, and the amount of compensation awarded under section 11; and 
 
(d)  if the objection be to th e amount of the compensation, the grounds on which the 
amount of compensation was determined. 
 
(2) To the said statement shall be attached a schedule giving the particulars of the notices 
served upon, and of the statements in writing made or delivered by, the parties interested 
respectively. 
 
 
1Two new sections 18­A and 18­B have been ins. in the N.W.F.P., see the Land Acquisition (North­West Frontier Province Amendment) 
Act, 1947 (N.W.F.P. Act 19 of 1947). 
2Added by Ord. No. XLIX of 1969, s. 13. 
 
 
Page 14 of 24 
 
20. Service of notice. The Court shall thereupon cause a notice specifying the day on which 
the Court will proceed to determine the objection, and directing their appearance before the Court on 
that day, to be served on the following persons, namely:___ 
 
(a)  the applicant; 
 
(b)  all persons interested in the objection, except such (if any) of them as have consented 
without protest to receive payment of the compensation awarded; and 
 
(c)  if the objection is in regard to the area of the land or to the amount of  the 
compensation, the Collector  1[and the Department of Government, local authority or 
Company, as the case for which land is being acquired]. 
 
21. Restriction on scope of proceedings.  The scope of the inquiry in every such proceeding 
shall be restricted to a consideration of the interests of the persons affected by the objection. 
 
22. Proceedings to be in open Court . Every such proceeding shall take place in open Court, 
and all persons entitled to practise in any Civil Court in the province shall be entitled to appear, plead 
and act (as the case may be) in such proceeding. 
 
1[22-A. Cross objections. The Provincial Government, or a local authority or a Company for 
which land is being acquired, may  lodge a  cross objection to the ob jection made by any person 
interested and the Court may reduce the amount awarded by the Collector if it considers it just 
and proper.] 
 
23. Matters to be considered in determining compensation .___(1) In determining the 
amount of compensation to be awarded for land acquired under this Act, the Court shall take into 
consideration– 
 
first, the market­value of the land at the date of the publication of the 2[notification under 
section 4, sub­section (1)]; 
 
1[EXPLANATION— For the purpose of determining the market-value, the Court shall take into 
account transfer of land similarly situated and in similar use. The potential-value of the 
land to be acquired if put to a different use shall only be taken into consideration if it is 
proved that land similarly situated and previously in similar use has, before the date of 
the notification under sub-section (1) of section 4, been transferred with a view to being 
put to the use relied upon as affecting the potential value of the land to be acquired: 
 
Provided that— 
 
(i) if the market-value has been increased in consequence of the land being put to a use 
which is unlawful or contrary to public policy that use shall be disregarded and 
the market-value shall be deemed to be the market-value of the land if it were 
put to ordinary use; and 
 
(ii) if  the market-value of  any building has been incr eased in consequence of the 
building being so overcrowded as to be dangerous to the health of the inmates, 
such overcrowding shall be disregarded and the market-value shall be deemed 
to be the market-value of the building if occupied by such number of persons 
only as can be accomm odated in it  without risk of  danger to health from 
overcrowding.] 
 
1Inserted & added  by Ord. No. XLIX of 1969, ss. 14, 15 & 16. 
2Subs. by the Land Acquisition (Amdt.) Act, 1923 (38 of 1923), s. 7, for “declaration relating thereto under s. 6”. 
 
 
Page 15 of 24 
 
secondly, the damage sustained by the person interested, by reason of the taking of any 
standing crops or trees which  may be on the land at the time of the Collector ’s taking 
possession thereof; 
 
thirdly, the damage (if any) sustained by the person interested, at the time of the Collector ’s 
taking possession of the land, by reason of severing such land from his other land; 
 
fourthly, the damage (if any) sustained by the person interested, at the time of the Collector ’s 
taking possession of the land, by reason of the acquisition injuriously affecting his 
other property, moveable or immoveable, in any other manner, or his earnings; 
 
fifthly, if, in consequence of the acquisition of the land by the Collector, the person interested 
is compelled to change his residence or place of business, the reasonable expenses (if 
any) incidental to such change; and 
 
sixthly, the damag e (if any) bona fide  resulting from diminution of the profits of the land 
between the time of the publication of the declaration under section 6 and the time of 
the Collector’s taking possession of the land. 
 
1[(2) In addition to the market-value of the land as above provided, the Court shall award a 
sum of fifteen per centum on such market-value, in consideration of the compulsory nature of the 
acquisition, if  the acquisition has been made for a public purpose and a sum of twenty-five per 
centum on such market-value if the acquisition has been made for a Company.] 
 
24. Matters to be neglected in determining compensation. But the Court shall not take into 
consideration___ 
 
first, the degree of urgency which has led to the acquisition; 
 
secondly, any disinclination of the person interested to part with the land acquired; 
 
thirdly, any damage sustained by him which, if caused by a private person, would not render 
such person liable to a suit; 
 
fourthly, any damage which is likely to be caused to the lan d acquired, after the date of the 
publication of the declaration under section 6, by or in consequence of the use to 
which it will be put; 
 
fifthly, any increase to the value of the land acquired likely to accrue from the use to which it 
will be put when acquired; 
 
sixthly, any increase to the value of the other land of the person interested likely to accrue 
from the use to which the land acquired will be put; or 
 
seventhly, any outlay or improvements on, or disposal of, the land acquired, commenced, 
made or effected without the sanction of the Collector after the date of the  publication 
of the 2[notification under section 4, sub­section (1)]. 
 
 
1Subs.by Ord. No. XLIX of 1969, s. 16. 
2Subs. by the Land Acquisition (Amdt.) Act, 1923 (38 of 1923), s .8. for “declaration under s . 6”. 
 
 
Page 16 of 24 
 
25.  Rules as to amount of compensation. ___(1)  When  the  applicant  has  made  a  claim  to 
compensation, pursuant to any notice given under section 9, the amount awarded to him by the Court 
shall not exceed the amount so claimed 1[* * * * * * *]. 
 
(2) When the applicant has refused to make such claim or has omitted without sufficient reason 
(to be allowed by the Judge) to make such claim, the amount awarded by the Court shall in no case 
exceed the amount awarded by the Collector. 
 
(3) When the applicant has omitted for a sufficient reason (to be allowed by the Judge) to make 
such claim, the amount awarded to him by the Court shall not be less than, and may exceed, the amount 
awarded by the Collector. 
 
2[26. Form of awards.___(1)] Every award under this part shall be in writing signed by the Judge,  
and shall specify the amount awarded under clause first of sub­section (1) of section 23, and also the 
amounts (if any) respectively awarded under each of the other clauses of the same s ub­section, together 
with the grounds of awarding each of the said amounts. 
 
3[(2) Every such award shall be deemed to be a decree and the statement of the grounds of every 
such award a  judgment within the  meaning of section 2, clause (2), and section 2,  clause (9), 
respectively, of the Code of Civil Procedure, 1908 (V of 1908).] 
 
27. Costs.___(1) Every such award shall also state the amount of costs incurred in the proceedings  
under this part, and by what persons and in what proportions they are to be paid. 
 
(2) When the award of the Collector is not upheld, the costs shall ordinarily be paid by the 
Collector, unless the Court shall be of opinion that the claim of the applicant was so extravagant or that 
he was so negligent in putting his case before the Collector that some deduction from his costs should be 
made or that he should pay a part of the Collector’s costs. 
 
28. Collector may be directed to pay interest on excess compensation . If the sum which in the 
opinion of the Court, the Collector ought to have awarded as compensation is in excess of the sum which 
the Collector did award as compensation, the award of the Court may direct that the Collector shall pay 
4[compound interest on such excess at the rate of eight per centum]  per annum from the date on which he 
took possession of the land to the date of payment of such excess into Court. 
 
4[Provided that in all cases where the Court has directed that Collector shall pay interest on 
such excess at the rate of six per centum from the date on which possession was taken and the 
payment of compensation or a part thereof has not been made up to the commencement of the Land 
Acquisition (West Pakistan Amendment) Act, 1969, the ra te of compound in terest on such excess on 
balance shall be eight per centum.] 
 _________ 
 
PART IV  
 
APPORTIONMENT OF COMPENSATION 
 
29. Particulars of apportionment to be specified . Where there are several persons interested, if 
such persons agree in the apportionment of the compensation, the particulars of such apportionment shall 
be specified in the award, and as between such persons the award shall be conclusive evidence of the 
correctness of the apportionment. 
 
30. Dispu te as to apportionment . When the amount of compensation has been settle d under 
section 11, if any dispute arises as to the apportionment of the same or any part thereof, or as to the  
persons to whom the same or any part thereof is payable, the Collector may refer such dispute to the 
decision of the court. 
 
1Ommitted by Ord. No. XLIX of 1969, s. 17 
2S. 26 was re­numbered as sub­section (1) of that section by the Land Acquisition (Amdt) Act, 1921 (19 of 1921), s . 2. 
3Sub­section (2) ins., ibid. 
4Subs and added by Act. NO. III of 1969, s.2. 
 
 
Page 17 of 24 
 
PART V 
 
PAYMENT 
 
31. Payment of compensation or deposit of same in Court. ___ 1[(1) When the Collector 
has made an award under section 11— 
 
(a)  if the persons interested entitled to compensation under the award and the 
Provincial Government accept the award and intimate their acceptance in writing 
to the Collector before the expiry of the period prescribed in sub-section (2) of 
section 18 for making an application to the Collector for referring the award to 
the Court, or in sub-section (3) of the said section for referring the award to the 
Court by the Provincial Government, whichever is later, or if the period 
specified in sub-section (2) of the said section for making an application to the 
Collector or in sub-section (3) for referring the award to the Court has expired 
and no such application or reference has been made, the Collector shall, before 
taking possession of the land, tender payment of the full amount of 
compensation awarded by him to the persons entitled thereto according to the 
award, and shall pay it to them unless prevented by some one or more of the 
contingencies mentioned in sub-section (2); 
 
(b)  if the persons interested entitled to compensation under the award or the 
Provincial Government object to the award and an application has been made to 
the Collector under sub-section (2) of section 18 for referring the award to the 
Court, or the award has been referred to the Court by the Provincial Government 
under sub-section (3) of that section, the Collector shall, before taking possession 
of the land, tender payment of the compensation awarded by him or the 
estimated cost of acquisition of such land as determined by the Collector of the 
district under sub-section (1) of section 17, whichever is less, to the persons 
entitled thereto under the award and shall pay it to them unless prevented by 
some one or more of the contingencies mentioned in sub- section (2): 
 
Provided that no payment under clause (b) sha ll be made  until the 
person entitled to compensation furnishes to the satisfaction of the Collector a 
security for refund of the amount, if any, which may subsequently be found 
to be in excess of the compensation awarded to him by the Court.] 
 
(2) If they shall not consent to receive it, or if there be no person competent to alienate the 
land, or if there be any  dispute as to the title to receive the compensation or as to the apportionment 
of it, the Collector shall deposit the amount of the compensation in the Court to which a reference 
under section 18 would be submitted: 
 
Provided that any person admitted to be interested may receive such payment under protest as 
to the sufficiency of the amount: 
 
Provided also that no person who has received the amount otherwise than under protest shall 
be entitled to make any application under section 18: 
 
Provided also that nothing herein contained shall affect the liability of any person, who may 
receive the whole or any part of any compensation awarded under this Act, to pay the same to the 
person lawfully entitled thereto. 
 
(3)  Notwithstanding anythi ng in thi s section the Collector may, wit h the sanction of the 
2[Provincial Government ], instead of awarding a money compensation in respect  of  any land, make  __________________________________________________________________________________________________________________________________________________________________________________________________ 
1Subs. by Ord. No. XLIX of 1969, s. 18. 
2Subs. by A.O., 1937, for “L. G.”. 
As to persons who are competent to contract, see s . 11 of the Contract Act, 1872 (9 of 1872). 
 
 
Page 18 of 24 
 
any arrangement with a person having a limited interest in such land, either by the grant of other 
lands in exchange, the remission of land­revenue on other lands held under the same title, or in such 
other way as may be equitable having regard to the interests of the parties concerned. 
 
(4) Nothing in the last foregoing sub­section shall be construed to interfere with or limit the 
power of the Collector to enter into any arrangement with any person interested in the land and 
1competent to contract in respect thereof. 
 
32. Investment of money deposited in respect of lands belonging to persons incompetent 
to alienate.__(1) If any money shall be deposited in Court under sub­section (2) of the last preceding  
section and it appears that the land in respect whereof the same was awarded belonged to any person 
who had no power to alienate the same, the Court shall___ 
 
(a)  order the money to be invested in the purchase of other lands to be held under the like 
title and conditions of ownership as the land in respect of which such money shall have 
been deposited was held, or 
 
(b)  if such purchase cannot be effected forthwith, then in such Government or  other 
approved securities as the court shall think fit; 
 
and shall direct the payment of the interest or othe r proceeds arising from such investment to the 
person or persons who would for the time being have been entitled to the possession of the said land,  
and such moneys shall remain so deposited and invested until the same be applied___ 
 
(i)  in the purchase of such other lands as aforesaid; or 
 
(ii)  in payment to any person or persons becoming absolutely entitled thereto. 
 
(2) In all cases of moneys deposited to which this section applies the Court shall order the 
costs of the following matters, including therein all reasonable charges and expenses incident thereto, 
to be paid by the Collector, namely:___ 
 
(a)  the costs of such investments as aforesaid; 
 
(b)  the costs of the orders for the payment of the interest or other proceeds, of the 
securities upon which such moneys are for the time being invested, and for the 
payment out of Court of the principal of such moneys, and of all proceedings 
relating thereto, except such as may be occasioned by litigation between 
adverse claimants. 
 
33. Investment of money deposited in other cases . When any money shall have been 
deposited in Court under this Act for any cause other than that mentioned in the last preceding 
section, the Court may, on the application of any party interested or claiming an interest in such 
money, order the same to be invested in such Government or other approved securities as it may 
think proper, and may direct the interest or other proceeds of any such investment to be accumulated 
and paid in such manner as it may consider will give the partie s interested therein the same benefit 
therefrom as they might have had from the land in respect whereof such money shall have been 
deposited or as near thereto as may be. 
 
34. Payment of interest . When the amount of such compensation is not paid or deposit ed   
on or  before  taking  possession  of  the  land,  the  Collector  shall  pay  the  amount   awarded  with 
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 
1As to persons who are competent to contract, see s . 11 of the Contract Act, 1872 (9 of 1872). 
 
 
Page 19 of 24 
 
1[compound interest at the rate of eight per centum]  per annum from the time of so taking possession 
until it shall have been so paid or deposited 1[;] 
 
1[Provided that any waiver of the above right by the land owner shall be void and he shall be 
entitled to the said interest notwithstanding any agreement to the contrary.] 
______________________ 
 
PART VI 
 
TEMPORARY OCCUPATION OF LAND 
 
35.  Temporary occupation of waste o r arable land . Procedure when difference as  to 
compensation exists.___(1) Subject to the provisions of Part VII of this Act, whenever it appears to 
the 2[Provincial Government] that the temporary occupation and use of any waste or arable land are  
needed for any public purpose, or for a Company, the 2[provincial Government] may direct the 
Collector to procure the occupation and use of the sa me for such term as it shall think fit, not 
exceeding three years from the commencement of such occupation. 
 
3[(2) The Collector shall cause public notice of the substance of the direction to be given at 
convenient places in the locality in which the land is situate, and thereupon it shall be lawful for any 
officer, either generally or specially authorised by the Collector in this behalf, and for the servants 
and workmen of such officer, to enter upon and survey and take levels of any land in such 
locality.] 
 
3[(3) On receipt of plans detailing the land acquired, the Collector shall give notice in 
writing to the persons interested in such land of the purpose for which the same is needed and 
shall, for the occupation and use thereof for such term as aforesaid, and for the materials, if any, to 
be taken therefrom, pay to them such compensation, either in a gross sum of money or by monthly or 
other periodical payments as shall be agreed upon in w riting be tween him and such pers ons 
respectively.] 
 
3[(4)] In cas e the Collector and the persons interested differ as to the sufficiency of the 
compensation or apportionment thereof, the Collector shall refer such difference to the decision of 
the Court. 
 
36. Power to enter and take possession, and compensation on resto ration.___(1) On 
payment of such compensation, or on executing such agreement or on making a reference under 
section 35, the Collector may enter upon and take possession of the land, and use or permit the use 
thereof in accordance with the terms of the said notice. 
 
(2) On the expiration of the term, the Collector shall make or tender to the persons interested 
compensation for the damage (if any) done to the land and not provided for by the agreement, and 
shall restore the land to the persons interested therein: 
 
Provided that, if the land has become permanently unfit to be used for the purpose for which 
it was used immediately before the commencement of such term, and if the persons interested shall 
so require, the 2[provincial Government] shall proceed und er this Act to acquire the land as if it was 
needed permanently for a public purpose or for a Company. 
 
37. Difference as to condition of land . In case the Collector and persons interested differ as 
to the condition of the land at the expiration of the term, or as to any matter connected with the said 
agreement, the Collector shall refer such difference to the decision of the Court. 
 
1Subs. and added by Act. NO. III of 1969. s.2.  
2Subs. by A.O., 1937, for “L. G.”. 
3Subs, re-numbered (3) into (4) and inserted new sub-sect (3). by Ord. No. XLIX of 1969, s. 19. 
 
 
 
 
 
Page 20 of 24 
 
PART VII 
 
ACQUISITION OF LAND FOR COMPANIES 
 
38. Company may be authorised to enter and survey .___ 1[(1) The Commis sioner may 
authorise any officer of any Company desiring to acquire land for its purpose to exercise the powers 
conferred by sub-section (2) of section 4.] 
 
(2) In every such case section 4 shall be construed as if for the words “for such purpose” the 
words “for the purposes of the Company ” were substituted; and 1[sub-section (3) of section 4] shall 
be construed as if after the words “the officer” the words “of the Company” were inserted. 
 
2[38A.  Industrial concern to be deemed Company for certain  purposes.  An  industrial 
concern, ordinarily employing not less th an one hundred workm en owned by an individual or by an 
association of individuals and not being a Company, desiring to acquire land for the erection of 
dwelling houses for workmen employed by the concern or for the provision of amenities directly 
connected therewith shall, so  for as concerns the acquisition of such land, be deemed to be a 
Company for the purposes of this Part, and the references to Company in sections 5A, 6, 7, 17 and 50 
shall be interpreted as references also to such concern.] 
 
39. Previous consent of Provinc ial Government and execution of agreement necessary . 
The provisions of sections 6 to 37 (both inclusive) shall not be put in force in order to acquire land 
for any Company, unless with the previous consent of the 3[Provincial Government] nor unless the 
Company shall have executed the agreement hereinafter mentioned. 
 
40. Previous enquiry .___(1) Such consent shall not be given unless the 3[Provincial 
Government] be satisfied, 4[either on the report of the Collector under section 5A, sub­section (2), 
or] by an enquiry held as hereinafter provided,___ 
 
5[(a)  that the purpose of the acquisition is to obtain land for the erection of dwelling 
houses for workmen employed by the Company or for the provision of 
amenities directly connected therewith, or 
 
6[(aa) that such accusation is needed for the construction of some building or work 
for a company which is engaged or is taking steps for engaging itself in any 
industry or work which is for a public purpose, or]  
 
(b)  that such acquisition is needed for the constr uction of some work, and that 
such work is likely to prove useful to the public 1[, or]] 
 
(c) 1[(c) that the area proposed to be acquired is reasonable for the purpose.] 
 
(2) Such enquiry shall be held by such officer and at such time and place as the 3[Provincial 
Government] shall appoint. 
 
(3) Such officer may summon and enforce the attendance of witnesses and compel the 
production of documents by the same means and, as far as possible, in the same manner as is 
provided by the 7Code of Civil Procedure (XIV of 1882) in the case of a Civil Court. 
 
41. Agreement with Provincial Government. 8*   *   * If the 3[Provincial Government] is 
satisfied 9[after considering the report, if any, of the Collector under section 5A, sub­section (2), or  on  
 
 1Subs. and added by Ord. No. XLIX of 1969, ss. 20 and 21. 
2S. 38A ins. by the Land Acquisition (Amdt.) Act, 1933 (16 of 1933), s. 6. 
3Subs. by A.O., 1937, for “L. G.”. 
4Ins. by the Land Acquisition (Amdt.) Act, 1923 (38 of 1923), s. 9. 
5Subs. by Act, 16 of 1933, s. 3, for the original clauses (a) and (b). 
6Ins. by Ord. No. I of 1965, s. 3.  
7See now the Code of Civil Procedure, 1908 (5 of 1908). 
8The words “Such officer shall report to the L. G. the result of the enquiry, and” rep. by Act, 38 of 1923, s. 10. 
9Ins. ibid. 
 
 
Page 21 of 24 
 
the report of the officer making an inquiry under section 40] that  1[the object of the proposed 
acquisition is to obtain land for one of the purposes referred to clause (a) or clause (aa) or  clause (b) 
of sub-section (1) of section 40]   , it shall 2*   *   * require the Company to enter into an agreement 
3[with the Provincial Government], providing to the satisfaction of the 4[Provincial Government] for 
the following matters, namely :___ 
 
(1) the 5[payment to the Provincial Government] of the cost of the acquisition;  
 
(2) the transfer, on such payment, of the land to the Company; 
 
(3) the terms on which the land shall be held by the Company; 
 
6[(4) where the acquisition is for the purpose of erecting dwelling houses or the provision of 
amenities connected therewith, the time within which, the conditions on which and the manner in 
which the dwelling houses or amenities shall be erected or provided; and 
 
1[(5) where the acquisition is for a purpose falling under clause (b) of sub-section (1) of section 
40, the time within which and the conditions on which the work shall be constructed and maintained.]] 
 
42. Publication of agreement . Every such agreement shall, as soon as may be after its 
execution, be published 7*  *  * in the 8[official Gazette] 1[and the acquisition shall be deemed to 
have been made subject to the terms of such agreement.] 
 
9[43. Section 39 to 42 not to apply when Government bound to provide land . The 
provisions of sections 39 to 42, both inclusive, shall not apply to the acquisition of land for any 
company, for the purposes of which , under any agreement with such company, the Federal 
Government or any Provincial Government is bound to provide land.] 
 
1[43-A. Restrictions on transfer, etc.— No Company for which any land is acquired under 
this Part shall be entitled to transfer the said land or any part thereof by sale, mortgage, gift, lease or 
otherwise, except with the previous sanction of the Provincial Government]. 
 
44. How agreement with Railway Company may be proved.­ In the case of the acquisition 
of land for the purposes of a Railway Company, the existence of such an agreement as is mentioned 
in section 43 may be proved by the production of a printed copy thereof purporting to be printed by 
order of Government. 
 
 
 
 
 
1Subs. and added by Ord. No. XLIX of 1969, ss. 22, 23 and 24. 
2The words “subject to such rules as the G.G. in C. may from time to  time prescribe in this behalf” rep. by the Devolution Act, 1920 (38 of 
1920), s. 2 and Sch. I. 
3Subs. by A.O., 1937, for “with the Secretary of State for India in Council”. 
4Subs. ibid., for “L.G.” 
5Subs. ibid., for “payment to Govt.”. 
6Subs. by Act 16 of1933, s. 4, for the original clauses (4) and (5). 
7The words “in the Gazette of India and also” rep. by A.O., 1937. 
8Subs. ibid., for “local official Gazette”. 
9Subs. by Ord. XXVII of 1981, s. 5 and sch. IV (only to the extent of Islamabad Capital Territory). 
 
 
 
Page 22 of 24 
 
PART VIII 
 
MISCELLANEOUS 
 
145. Service of notices.___(1) Service of any notice under this Act shall be made by delivering 
or tendering a copy thereof signed, in the case of a notice under section 4, by the officer therein 
mentioned, and, in the case of any other notice, by or by order of the Collector or the Judge. 
 
(2) Whenever it may be practicable, the service of the notice shall be made on the person 
therein named. 
 
(3) When such person cannot be found, the service may be made on any adult male member 
of his family residing with him; and, if no such adult male member can be found, the notice may be 
served by fixing the copy on the outer door of the house in which the person therein named 
ordinarily dwells or carries on business, or by fixing a co py thereof in some conspicuous place in the 
office of the officer aforesaid or of the Collector or in the court­house, and also in some conspicuous 
part of the land to be acquired : 
 
Provided that, if the Collector or Judge shall so direct, a notice may be sent by post, in a letter 
addressed to the person named therein at his last known residence, address or place of business and 
registered under 2[the Post Office Act, 1898 (VI of 1898)], and service of it may be proved by the 
production of the addressee’s receipt. 
 
46. Penalty for obstructing acquisition of land. Whoever wilfully obstructs any person in 
doing any of the acts authorised by section 4 or section 8, or wilfully fills up, destroys, damages or 
displaces any trench or mark made under section 4, shall, on conviction before a Magistrate, be liable 
to imprisonment for any term not exceeding one month, or to fine not exceeding fifty rupees, or to 
both. 
 
47. Magistrate to enforce surrender.  If the Collector is opposed or impeded in taking 
possession under this Act of any land, he shall, if a Magistrate, enforce the surrender of the land to 
himself, and , if not a Magistrate, he shall apply to 2[an executive magistrate] 3*  *  * and such 
Magistrate 4*  *  * shall enforce the surrender of the land to the Collector. 
 
48. Completion of acquisition not compulsory, but compensation to be awarded when  
not completed.__(1) Except in the case provided for in section 36, the Government shall be at liberty 
to withdraw from the acquisition of any land of which possession has not been taken. 
 
 
(2)  Whenever the Government withdraws from any such acquisition, the Collector  shall 
determine the amount of compensation due for the damage suffered by the owner in consequence of 
the notice or of any proceedings thereund er, and shall pay such amount to the person interested, 
together with all costs reasonably incurred by him in the prosecution of the proceedings under this 
Act relating to the said land. 
 
(3) The provisions of Part III of this Act shall apply, so far as ma y be, to the determination of 
the compensation payable under this section. 
 
 
 
1This section has been amended in N.W.F.P. by the Land Acquisition (North­West Frontier Province Amdt.) Act, 1947 (N.W.F.P. Act 19 of 
1947). 
2Subs. by Ord. XXVII of 1981, s. 5 and Sch. IV (only to the extent of Islamabad Capital Territory). 
3The words and brackets “or (within the towns of Calcuta, Madras and Bombay) to the Commissioner of Police” Omitted by A.O. 1949, Sch. 
4The words and brackets “or Commissioner (as the case may be)” Omitted , ibid ; 
 
 
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49. Acquisition of part of house or building.__(1) The provisions of this Act shall not be put 
in force for the purpose of acquiring a part only of any house, manufactory or other building, if the 
owner desire that the whole of such house, manufactory or building shall be so acquired: 
 
Provided that the owner may, at any time before the Collector has made his award under 
section 11, by notice in writing, withdraw or modify his expressed desire that the whole of such 
house, manufactory or building shall be so acquired: 
 
Provided also that, if any question shall arise as to whether any land proposed to be taken 
under this Act does or does not form part of a house, manufactory or building within the meaning of 
this section, the Collect or shall refer the determination of such question to the Court and shall not 
take possession of such land until after the question has been determined. 
 
In deciding on such a reference the Court shall have regard to the question whether the land 
proposed t o be taken is reasonably required for the full and unimpaired use of the house, 
manufactory or building. 
 
(2) If, in the case of any claim under section 23, sub ‑section (1), thirdly, by a person 
interested, on account of the severing of the land to be acqu ired from his other land, the 1[Provincial 
Government] is of opinion that the claim is unreasonable or excessive, it may, at any time before the 
Collector has made his award, order the acquisition of the whole of the land of which the land first  
sought to be acquired forms a part. 
 
(3) In the case last here in  before provided for, no fresh declaration or other proceedings 
under Sections 6 to 10, both inclusive, shall be necessary; but the Collector shall without delay 
furnish a copy of the order of the 1[Provincial Government] to the person interested, and shall 
thereafter proceed to make his award under section 11. 
 
50. Acquisition of land at cost of a local Authority or Company. ___(1) Where the 
provisions of  this Act are put in force for the purpose of acq uiring land at the cost of any fund 
controlled or managed by a local authority or of any Company, the charges of and incidental to such 
acquisition shall be defrayed from or by such fund or Company. 
  
2[(1-A) Any charges to be defrayed from the funds of a local authority or a Company 
under sub-section (1), may be recovered, in addition to any other mode of recovery provided in 
any other law, as arrears of land revenue.] 
 
(2) In any proceeding held before a Collector or Court in such cases the local authority or 
Company concerned may appear and adduce evidence for the purpose of determining the amount of 
compensation: 
 
Provided that no such local authority or Company shall be entitled to demand a reference 
under section 18. 
 
51. Exemption from stamp duty and fees . No award or agreement made under this Act 
shall be chargeable with stamp duty, and no person claiming under any such award or agreement 
shall be liable to pay any fee for a copy of the same. 
 
1Subs. by A. O.,1937, for “L. G.” 
2Ins.by Ord. No. XLIX of 1969, s. 25. 
 
 
 
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52. Notice  in case of suits for anything done in pursuance of Act . No suit or other 
proceeding shall be commenced or prosecuted against any person for anything done in pursuance of 
this Act, without giving to such person a month ’s p revious notice in writing of the intended 
proceeding, and of the cause thereof, nor after tender of sufficient amends. 
 
53. Code of Civil Procedure to apply to proceedings before Court . Save in so far as they 
may be inconsistent with anything contained in this Act, the provisions of the 1Code of Civil 
Procedure (XIV of 1882) shall apply to all proceedings before the Court under this Act. 
 
2[54. Appeals in proceedings before Court . Subject to the provisions of the Code of Civil 
Procedure, 1908 (V of 1908), applicable  to appeals from original decrees, and notwithstanding 
anything to the contrary in any enactment for the time being in force, an appeal shall only lie in any 
proceedings under this Act to the High Court from the award, or from any part of the award, of the 
Court and from any decree of the High Court passed on such appeal as aforesaid an appeal shall lie 
to 3[the Supreme Court] subject to the provisions 4[of article 185 of the Constitution]]. 
 
55. Power to make rules .___(1) The 5[Provincial Government] shall 6*  *  * have power to 
make 7rules  consistent  with  this  Act  for  the  guidance  of  officers  in  all  matters  connected  
with  its enforcement, and may from time to time alter and add to the rules so made. 
 
8*             *            *            *            *            *            * 
 
(2) The power to make, alter and add to rules under sub ‑section (1) shall be subject to the 
condition of the rules being made, altered or added to after previous publication. 
 
(3) All such rules, alterations and additions shall 9*  *  * be published in the official Gazette, 
and shall thereupon have the force of law. 
 
 
 
1See now the Code of Civil Procedure, 1908 (5 of 1908). 
2Subs. by s. 3 of the Land Acquisition (Amendment) Act, 1921 (10 of 1921), for the original section. 
3Subs. by A.O., 1961, Art. 2 and Sch., for “His Majesty in Council” (with effect from the 23rd March, 1956). 
4subs. by Ord. XXVII of 1981, s. 5 and Sch. IV (only to the extent of the Islamabad Capital Territory). 
5Subs. by A.O., 1937, for “L.G”. 
6The words “subject to the control of the G.G . in C.” which had been ins. by the Decentralization Act, 1914 (4 of 1914), were rep. by the 
Devolution Act, 1920 (38 of 1920), s .2 and Sch. I. 
7For rules made under this section, see different local Rules and Orders. 
8The proviso, which had been added by s. 2 and Sch. I of the Devolution Act, 1920 (38 of 1920), was rep. by A.O., 1937. 
9The words “when sanctioned by the G.G. in C.” were rep. by the Decentralization Act, 1914 (4 of 1914), s .2 and Sch., Pt.I. 
 
 
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