IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
North Eastern Transmission Company Ltd. – Appellant
Versus
The State Of Assam And Ors. – Respondents
WP(C) 3626 of 2018
Decided on : 11-11-2024
(A) Indian Telegraph Act, 1885 - Sections 10, 11, 12, and 16 - Compensation for surface damage due to transmission lines - The court held that diminution of land value is not a relevant factor for compensation under the Act, emphasizing that surface damages should be assessed based on the produce of the land rather than its value. The court referred to the Central Government's guidelines and the Supreme Court's ruling in Kerala State Electricity Board Vs. Livisha & Ors. to support its decision. (Paras 5, 6, 10, 14)
(B) Judicial Precedent - The court found that the previous judgment of the Coordinate Bench was rendered per incuriam as it failed to consider binding precedents and relevant statutory provisions, thus not constituting a binding authority. (Paras 13, 14)
Facts of the case:
The petitioner challenged the District Judge's ruling on compensation for land value diminution, arguing that the court below incorrectly awarded compensation based on irrelevant factors.
Findings of Court:
The court set aside the previous judgment regarding land value compensation and remanded the matter for fresh consideration in line with established legal principles.
Issues: The main issues were whether diminution of land value is a relevant factor for compensation and the binding effect of previous judgments.
Ratio Decidendi: The court ruled that compensation must be based on relevant legal guidelines and precedents, rejecting the notion that land value diminution is a valid basis for compensation.
Result: The petition is disposed of with directions for compliance.
JUDGMENT :
Heard Ms. M. Hazarika, the learned Senior Counsel assisted by S. Khound, the learned counsel appearing on behalf of the Petitioner and Ms. S. Baruah, the learned Government Advocate appearing on behalf of the Respondent State.
2. It further appears from the order passed by the Lawazima Court dated 05.09.2024 that the service upon the Respondent No. 2 is complete.
3. The present writ petition has been filed challenging the judgment dated 22.11.2017 passed in Misc. (P.G.) Case No. 46/2015 by the District Judge, Hailakandi, whereby it was held that the petitioner was paid adequate compensation for the damage of trees mentioned and there was no need for enhancement. However, as regards the diminution of land value, the Court below awarded an amount of Rs.15,000/- as compensation for diminution of the land value and directed that the petitioner to pay the enhanced compensation of Rs.32,700/- to the Respondent No.2 within a period of 6 (six) months, failing which interest @ 8% per annum would be accrued on the same from the date of the said judgment till full payment.
4. This Court vide an order dated 11.06.2018 had issued notice and had stayed the impugned judgment and order dated 22.11.2017 passed in Misc. (P.G.) Case No. 46/2015 by the District Judge, Hailakandi.
5. Ms. M. Hazarika, learned Senior Counsel for the petitioner submits that the issue stands settled by a judgment of the Coordinate Bench of this Court dated 10.02.2020 passed In W.P.(C) No.668/2019 (North Eastern Transmission Company Limited Vs. The State of Assam & Ors.) and she draws the attention of this Court to the findings arrived therein that diminution of the land value is not a relevant factor to be taken into consideration as compensation. On the basis thereof, the learned Senior Counsel submitted that in a similarly situated case, this Court vide the said judgment and order dated 10/02/2020 had set aside similar order where compensation on the basis of diminution of land value was awarded. The relevant portion of the judgment and order dated 10/02/2020 passed by the Coordinate Bench of this Court to which the learned Senior Counsel refers to is quoted herein below :-
In my considered opinion keeping in view the ambit of scope of Telegraph Act, 1885, and the provisions therein interference of the said impugned order dated 26/09/2018 of the Court below is required which accordingly, I do thereby setting aside the same.”
6. A perusal of the above quoted portion of the judgment of this Court would show that this Court had taken into consideration the Central Government’s circular issued by the Ministry of Power in the year 2015 whereby any person affected by such erection of tower and drawal of transmission line was held to be entitled for surface damage in respect of the land for the Right of way (RoW) permitted under the Indian Telegraph Act, 1885 to the licensee and also in respect to the land covered by the tower base. It was further noted that while assessin
Kerala State Electricity Board Vs. Livisha & Ors. reported in (2007) 6 SCC 792
(dead) by LRs. Vs. Babu (dead) through LRs reported in (2004) 1 SCC 681
The court established that under the Indian Telegraph Act, 1885, compensation for land damage must be based on surface damage rather than land value diminution.
Compensation for land diminished by utility installations must ensure full restitution considering statutory mandates and factual circumstances.
Compensation for land value diminution must consider ecological and economic impacts caused by utility infrastructure, with interest applicable from the date of loss.
Compensation for land value diminution must reflect true loss due to utility infrastructure, assessed by relevant factors.
Compensation for land diminution under transmission lines must use comparable sale values and consider usage restrictions.
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