Compensation for land diminished by utility installations must ensure full restitution considering statutory mandates and factual circumstances.

ORDER

Dated this the 07^th day of January, 2026 The revision petitioner, Power Grid Corporation of India Ltd ('the Corporation' for short), is aggrieved by the order of the Additional District Judge-I, Kalpetta, Wayanad in O.P.(Electricity) No.21 of 2008 directing payment of enhanced compensation to respondents 1 to 5 towards diminution in land value and trees cut, consequent upon the drawing of 400 KV electric lines across their property.

The essential facts are as under;

The first respondent was in ownership and possession of landed property having an extent of 56.83 cents comprised in Sy.No.127/4 of Vengapally Village in Vythiri Taluk. Respondents 2 to 5 herein are the legal heirs of the deceased 1^st respondent. The land was cultivated with various yielding and non-yielding trees. According to respondents 2 to 5, for facilitating the drawing of the lines to ensure smooth transmission of power, large number of trees were cut from their property. The drawing of high- tension lines rendered the land underneath and adjacent to the lines useless, resulting in diminution in the value of the property. A tower was also installed in the petition schedule property. In spite of the huge loss suffered by the first respondent, only Rs.2,25,916/- was paid as compensation towards the value of yielding and non-yielding trees cut and no compensation was granted for diminution in land value. Hence, the original petition was filed before the District Court, seeking enhanced compensation towards the value of trees cut and diminution in land value.

2. As per the order dated 22.07.2014, the court below found the first respondent entitled to Rs.2,84,150/- towards compensation for diminution in land value and enhanced the compensation for yielding and non-yielding trees cut by ordering additional compensation of Rs.1,14,142/-. Dissatisfied with the quantum of compensation ordered, the first respondent filed CRP No. 48 of 2016 before this Court. The impugned order was thereupon set aside and the matter remanded back to consider afresh in line with the dictum laid down by the Hon’ble Apex Court in KSEB v. Livisha [(2007) 6 SCC

792].

3. Accordingly, the original petition was considered again. Relying on the valuation statement and following the principle crystalized in Livisha (supra), the court below ordered a sum of Rs.1,14,112/- as additional compensation for yielding trees and Rs.19,600/- towards non-yielding trees cut. As far as the claim for compensation towards diminution in land value is concerned, the court below, relying on Ext. C1 commission report, found that out of the total extent of 56.83 cents, 8.92 cents is covered by the tower erected in the property and the remaining 47.91 cents is also affected due to the drawing of the 400KV Mysore – Kozhikode double circuit lines. In Ext. C1 commission report, it was also noted that a house bearing door No. IV/2016 of Vengapally Grama Panchayat is situated in the centre of the subject property and the Kalpetta – Thekkumthara road lies adjacent to it. The proximity of various institutions including a school, hospital, bank, post office and ration shop was also taken into consideration. In the absence of other material evidence to prove the market value, the court below fixed the land value of the property at Rs.20,000/- per cent based on the locational features. Accordingly, respondents 1 to 5 were found entitled to compensation of Rs.3,83,280/- towards diminution in land value and another sum of Rs.1,78,400/- for the tower footing area. Contending that the enhancement ordered is far in excess of the actual damage sustained, the Corporation has filed thi