INTRODUCTION
Compensation is that amount which is necessary to restore an injured party to his former position. Therefore compensation is the money that a court or other tribunal orders to be paid by a person whose acts or omissions have caused loss or injury to another person.
RELEVANT PROVISION
Sections 70 to 73 deal with the procedure for determining compensation.
MEANING & DEFINITION OF COMPENSATION
Compensation is that amount which is necessary to restore an injured party to his former position. e.g. Remuneration for services rendered, whether in salary, fees, or commissions.
PROCEDURE IN DETERMINING COMPENSATION
Following is the procedure for determining the amount of compensation.
1. Determination by Revenue Court
Statement of Claim of Tenant:
In every suit by a tenant to contest his liability to ejectment or by a landlord to eject the tenant or to enhance his rent the court shall direct the tenant to file a statement of his claim, if any, to compensation for improvement or for disturbance and of the grounds thereof.
Decree of the Ejectinent of Tenant:
If the court decrees the ejectment of the tenant or the enhancement of this rent, it shall determine the amount of compensation, if any due to the tenant.
Stays Execution of Decree:
The court shall stay the execution of the decree until the landlord pays into court that amount less any arrears of rent or costs proved to the satisfaction of the court to be due to him from the tenant.
2. Determination by Revenue Officers
Application for the Determination of Compensation:
The tenant may apply to the revenue officer having authority to order his ejectment under section 44 or section 45, as the case may be, to determine the amount of compensation due to him for improvements for disturbance, or for both.
Determination of Amount:
The revenue officer shall determine the amount if any, accordingly.
Stay of the Ejectment of Tenant:
The revenue officer shall stay the ejectment of the tenant.
Duration of Stay:
Such ejectment shall be stayed until the landlord pays the revenue officer the amount so determined less any arrears of rent or costs proved to the satisfaction of the revenue officer to be due to the landlord from the tenant.
MATTERS TO BE REGARDED IN ASSESSMENT
Section 72 of the Punjab Tenancy Act, of 1887 deals with the matters which have to be taken into consideration in the assessment of compensation for improvement.
1. Authorities to make Assessment:
Such assessment shall be made by the Court or revenue officer.
2. Scale of Compensation:
The following are the matters which shall be taken into consideration in the assessment.
Condition of Improvement:
In estimating the compensation to be awarded under this chapter to a tenant for an improvement, the court or revenue officer shall have regard to the condition of the improvement.
Duration of Effect of Improvement:
In estimating the compensation to be awarded under this chapter to a tenant for an improvement the court or revenue officer shall have regard to the probable duration of its effect.
Labor required in Improvement:
In estimating the compensation to be awarded under this chapter to a tenant for an improvement the court or revenue officer shall have regard to the labor required for the making of such an improvement.
Capital Required in Improvement:
In estimating the compensation to be awarded under this chapter to a tenant for an improvement the court or revenue officer shall have regard to the capital required for making such an improvement.
Reduction of Rent:
In estimating the compensation to be awarded under this chapter to a tenant for an improvement the court or revenue officer shall have regard to any reduction of rent to the tenant by the landlord in consideration of the improvement.
Remission of Rent:
In estimating the compensation to be awarded under this chapter to a tenant for an improvement the court or revenue officer shall have regard to any remission of rent to the tenant by the landlord in consideration of the improvement.
FORM OF COMPENSATION
1. Mode of Compensation:
The following is the mode of compensation:
Payment in Money: The compensation shall be made by payment in money.
Grant of beneficial lease of Land: The compensation shall be made by payment in money unless the parties agree that it be made in whole or in part by the grant of a beneficial lease of land or in some other way.
2. Authority to Make Orders:
If the parties so agree, then the court or revenue officer shall make an order accordingly.
CONCLUSION
It is concluded that the tenant shall file a statement of his claim in the Revenue Court if any compensation for improvement or for disturbance and of the grounds thereof. If the Revenue Court decrees the ejectment of the tenant or the enhancement of the rent, it shall determine the amount of compensation according to sections 70 to 73 of the Punjab Tenancy Act 1887.
FAQs
Is a tenant entitled to compensation for the improvements made by him in his tenancy in case of his ejectment or on the enhancement of his rent? Also, explain the nature of improvement for which a tenant is entitled to compensation.
(2012-S)
Is a tenant titled to compensation for the improvements carried out by him in his tenancy, before his ejectment from the land?
(2007-S)
