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Lahore High Court suspends Rs60bn compensation order against Lesco

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Lahore High Court suspends Rs60 billion compensation order against Lesco, citing unresolved land ownership dispute pending before Kasur Civil Court.

LAHORE (Muhammad Ashfaq) - The Lahore High Court has suspended an order seeking recovery of Rs60 billion in compensation from Lahore Electric Supply Company (Lesco) and issued notices to the parties, seeking their responses by September 3.

Justice Muhammad Jawad Hassan issued the interim written order on a petition filed by Lesco. Barrister Umar Riaz appeared before the court on behalf of the power distribution company.

According to the court order, a citizen claimed that Lesco had established a grid station on his 45-kanal land in 1976, for which he was entitled to Rs60 billion in compensation.

The Federal Ombudsman had recommended in 2013 that compensation be paid according to the market value of the land. The court noted that a 2015 decision had directed authorities to determine ownership and the area of the land through examination of revenue records and an on-site inspection before payment of compensation.

The Kasur Civil Court issued an interim order in Lesco’s favor on May 8, 2023, while proceedings for enforcement of the compensation claim were closed on September 16, 2024.

Lesco has disputed the claimant’s ownership of the land, maintaining that the provincial government is its actual owner. The high court observed that the ownership dispute is already pending before the Kasur Civil Court, making payment of compensation without first determining ownership a legal question.

The Lahore High Court ordered that if the compensation order had not already been enforced, its implementation should remain suspended until the next hearing.

The court also directed the person declared entitled to the compensation to appear in person at the next hearing. 

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