Compensation assessment for land value diminution and property use loss due to infrastructure installations must follow established principles, considering relevant factors.

ORDER

Dated this the 09^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.125 of 2009 directing payment of enhanced compensation to the respondent towards diminution in land value and trees cut, consequent upon the drawing of 400 KV electric lines across his property.

The essential facts are as under;

The respondent’s mother was in ownership and possession of landed property comprised in Sy.Nos. 320/03 & 322/03 of Cherukattoor Village in Mananthavady Taluk. Respondent herein is the legal heir of the deceased original petitioner. The land was cultivated with various yielding and non-yielding trees. According to the respondent, for facilitating the drawing of the lines to ensure smooth transmission of power, large number of trees were cut from the 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. In spite of the huge loss suffered by the original petitioner, only Rs.4,15,447/- 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, original petition was filed before the District Court seeking enhanced compensation towards the value of trees cut and diminution in land value.

2. By order dated 24.07.2014, the court below found the respondent entitled to Rs.8,52,500/- towards compensation for diminution in land value and enhanced the compensation by ordering additional compensation of Rs.94,875.72 for yielding trees and Rs.3,932.50 for non- yielding trees cut. Dissatisfied with the quantum of compensation awarded, the first respondent’s mother filed CRP No. 320 of 2015 before this Court. The impugned order was set aside and the matter remanded back to consider afresh in line with the dictum laid down by the 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. 94,875.72/- as additional compensation for yielding trees and Rs. 3,932.50/- towards non-yielding trees cut. As far as the claim for compensation towards diminution in land value is concerned, the court below relied on Exts. C1 to C4 commission reports and plans. The court found that an extent of 85.24 cents is affected due to the drawing of 400KV Mysore – Kozhikode double circuit lines. The court has taken the potentiality of the property into account. As per Ext. C1 commission report, the electric lines were drawn through the middle of the subject property. The proximity of various institutions including a school, church, mosque and the presence of National Highway that lie near to the subject property was also taken into consideration. In the absence of other oral evidence to prove the market value, the court below fixed the land value of the property at Rs.30,000/- per cent based on the aforesaid locational features. Accordingly, after applying 40% as the percentage of diminution, the respondent was found entitled to compensation of Rs.10,23,000/- towards diminution in land value. Contending that the enhancement ordered is far in excess of the actual damage sustained, the Corporation has filed this revision petition.

4. Heard Adv. E.M. Murugan for the Corporation and Adv. P.V. Varghese for the respondent.

5. Learned Counsel for the Corporation contended that the compensation granted towards diminution in land value as well as towards the value of yielding