LHC halts Rs60bn LESCO compensation order in 48-year-old land dispute

Justice Muhammad Jawad Hassan, while hearing LESCO’s petition challenging the compensation proceedings, sought replies from all respondents by

LAHORE: The Lahore High Court (LHC) has suspended the implementation of a civil court order directing the Lahore Electric Supply Company (LESCO) to pay Rs60 billion in compensation over the use of 45-kanal land in Kasur for a grid station.

Justice Muhammad Jawad Hassan, while hearing LESCO’s petition challenging the compensation proceedings, sought replies from all respondents by September 3 and directed the claimant seeking compensation to appear personally before the court.

The dispute dates back to 1976, when, according to the claimant, LESCO established a grid station on his 45-kanal property without providing due compensation. The claimant has sought Rs60 billion for the use of the land over several decades.

He also relied on a 2013 recommendation by the Federal Ombudsman, which called for compensation based on the prevailing market value of the property.

The high court noted that an earlier judgment issued in 2015 had required examination of revenue records and an on-site inspection before any compensation could be determined or paid.

LESCO, however, has challenged the claimant’s ownership of the property. Represented by Barrister Umar Riaz, the company maintained that the land belongs to the Punjab government and not to the person seeking compensation.

The court observed that the ownership question remains pending before the Civil Court in Kasur, raising concerns over whether compensation can be awarded before the title to the property is conclusively established.

The LHC ordered that if the disputed compensation order has not already been implemented, it must remain suspended until the next hearing. The court also directed all respondents to submit their replies by September 3.

The long-running case involves questions concerning land ownership, compensation for public utility infrastructure and the potential financial liability of a major public-sector power distribution company. The final outcome is expected to depend largely on the determination of ownership and the legal status of the land’s use.

The matter will come up for further proceedings on September 3.