LHC halts Rs60bn LESCO compensation payment

The Lahore High Court has issued a stay order against a decision directing the Lahore Electric Supply Company (LESCO)

The Lahore High Court has issued a stay order against a decision directing the Lahore Electric Supply Company (LESCO) to pay Rs60 billion in compensation to a citizen over a disputed piece of land.

Justice Jawad Hassan issued an interim written order on a petition filed by LESCO and restrained the power distribution company from making the Rs60 billion payment until the next hearing.

The court also issued notices to all parties and sought their responses by September 3.

The case concerns a claim by a citizen who says that WAPDA, and later LESCO, established a grid station on his 45-kanal land in 1976. According to the claimant, LESCO owes him Rs60 billion as compensation for the property.

The citizen had approached the authorities seeking compensation based on the market value of the land. The Federal Ombudsman recommended in 2013 that compensation be paid according to the property’s market value.

LESCO subsequently challenged the ombudsman’s decision before the President’s Secretariat.

According to the court order, a decision issued in 2015 directed that the revenue record and the site be inspected before determining ownership and the exact area of the land for compensation purposes.

The court noted that the Civil Court in Kasur had issued an interim order in favour of LESCO on May 8, 2023. Proceedings relating to implementation of the compensation order were later closed on September 16, 2024.

Justice Jawad Hassan also directed the District Police Officer (DPO) Kasur to produce the person claiming the compensation in person before the court.

In a striking observation, the judge stated that if the person who filed the Rs60 billion claim is alive, he should be produced before the court. If he has died, the court should be informed of his grave number.

The order further noted that LESCO has disputed the claimant’s ownership of the land and maintains that the provincial government is the actual owner. The issue of ownership is already pending before the Civil Court in Kasur.

The Lahore High Court observed that determining compensation without first settling ownership has raised an important legal question. Therefore, the court directed that if the compensation order has not already been implemented, it should not be enforced until the next hearing.