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2024 Supreme(Online)(KER) 24032

HIGH COURT OF KERALA
V. G. Arun, J
POWER GRID CORPORATION OF INDIA LIMITED – Appellant
Versus
GEORGE JACOB – Respondent
CRP 256/2019



Advocates:
ADV E.M.MURUGAN, SRI.V.V.SURENDRAN, SRI.P.A.HARISH

The court applied the principles laid down by the Supreme Court in KSEB v. Livisha for determining the compensation payable towards diminution in land value due to the drawing of high-tension electric lines.

Headnote:

Land Acquisition - Electricity Act - Sections 67, 68 - The court considered the diminution in land value due to the drawing of 400 KV electric lines across the respondents' properties by the Power Grid Corporation of India Ltd. The court awarded compensation based on the land value, extent of affected area, and the degree of diminution, as per the principles laid down by the Supreme Court. The court also awarded interest on the additional compensation at the rate of 12% per annum.

Fact of the Case:

The Power Grid Corporation of India Ltd drew 400 KV electric lines across the respondents' properties, resulting in the cutting of a large number of trees. The respondents filed a petition seeking enhanced compensation towards the value of the trees cut and the diminution in land value. The court below initially granted a small amount as compensation, which was challenged by the respondents. The case was remanded back with a direction to determine the yield from each tree and consider all components of diminution in land value. After the remand, the court below awarded enhanced compensation towards the diminution in land value, which was challenged by the Power Grid Corporation of India Ltd.

Finding of the Court:

The court found that the compensation payable towards diminution in land value was fixed based on factors like the situs of the land, the extent to which the land is adversely affected, and the consequent diminution in value of the land, as laid down by the Supreme Court. The court also found that the discretion vested with the court was properly exercised by awarding 25% of the land value as compensation for the land affected due to the drawing of electric lines and 100% for the tower footing area.

Issues: The main issues were: (1) Whether the court below was justified in fixing a higher land value compared to the earlier compensation awarded; (2) Whether the court below committed an illegality by awarding interest at the rate of 12% on the additional compensation.

Ratio Decidendi: The court held that the court below was not bound by the guidelines issued by the Government while fixing the compensation, and it properly exercised its discretion in awarding compensation based on the principles laid down by the Supreme Court. The court also held that the decision to award interest at the rate of 12% per annum on the additional compensation was in line with the court's earlier decision in P. Raghavan v. KSEB.

Final Decision: The civil revision petition filed by the Power Grid Corporation of India Ltd was dismissed, and the well-considered order of the court below was upheld.

ORDER

Dated this the 28th day of May, 2024 The revision petitioner, Power Grid Corporation of India Ltd ('the Corporation' for short), is aggrieved by the enhanced compensation ordered to be paid to the respondents towards diminution in land value, consequent upon the drawing of 400 KV electric lines across their properties by the Corporation. The essential facts are as under;

    In order to facilitate drawing of 400 KV electric lines for the smooth transmission of power in the Mysore-Kozhikode sector, large number of trees were cut from the respondents' properties. According to the respondents, the drawing of high tension lines had rendered the land underneath and adjacent useless, resulting in diminution of the land value. In spite of the huge loss suffered by the respondents, only small amounts were granted as compensation. Hence, the respondents filed the original petition, seeking enhanced compensation towards the value of trees cut and diminution in land value. Being dissatisfied with the enhancement of compensation awarded by the court, the respondents preferred civil revision petition and the same was allowed by this Court and the case remanded back with a direction to determine yield from each tree and to consider all components of diminution in land value including prevailing market price of the land and any new factor which may be brought to the notice of the court by the respondents. After remand, the respondents filed a statement before the court below clarifying that they are not claiming additional compensation for loss for the improvements. Accordingly, the court below considered the claim for enhanced compensation towards diminution in land value alone and passed the impugned order.

2. After remand, it was argued on behalf of the respondents that, fixation of lower the land value without proper consideration of essential facts had resulted in the percentage of diminution being fixed on the lower side. It was submitted that the property involved in Ext.A8

document, which is a similar land, was sold at Rs.75,000/- per cent. Reliance was placed on the property involved in O.P.No.74 of 2010 to claim that the land value should not be less than Rs.35,000/- per cent. The findings in the Advocate Commissioner's report was also pressed into service to establish similarity between the lands involved.

3. Per contra, learned Counsel for the petitioner Corporation had argued that a fair and adequate compensation had been awarded after considering all relevant factors, including Ext.A7 fair value statement and G.O.(Rt) No.581/2010/RD dated 04.02.2010. It was contended that the property involved in Ext.A8 document is not having similar locational features and is not similarly situated land and a higher price had been paid by the buyer of that property, since the transaction was commercial in nature.

4. Although respondents had relied on Ext.A8 document, the court below refused to accept the property involved in the said document as comparable land, in view of the fact that the property involved in Ext.A8 document was transferred to provide access-cum-parking space for a hotel-cum-restaurant proposed to be constructed in that property. On the other hand, the court below took note of the fact that the petition schedule properties abut the Panchayat road on the north and important places like Maikavu and Kodencherry are situated at a distance of 1 Km. The fact that, a Government College is situated within 600 metres, an LP School at 400 metres and a PWD road passes at a distance of 600 metres was taken into account. On consideration of the above factors and on comparison of the petition schedule properties with the property involved in Ext.A11 document, the court below fixed the land value at Rs.35,000/- per cent, as against Rs.10,000/- per cent fixed earlier. As substantial portion of the respondent's property was found affected due to the drawing of electric lines, 25% of the land value was fixed as compensation for the corridor and 1

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