Compensation for land value diminution must reflect true loss due to utility infrastructure, assessed by relevant factors.

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, Kozhikode in O.P.(Electricity) No.91 of 2011 directing payment of enhanced compensation to the first respondent towards diminution in land value, consequent upon the drawing of 400 KV electric lines across her property.

The essential facts are as under;

The first respondent was in ownership and possession of landed property comprised in Sy.No. 57/1 of Eangappuzha Village in Kozhikode Taluk. The land was cultivated with various yielding and non-yielding trees. According to the first 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, only Rs.71,937/- 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 the common order dated 04.02.2012, the court below found the first respondent entitled to compensation for diminution in land value and enhanced the compensation for yielding and non-yielding trees cut. Dissatisfied with the quantum of compensation ordered, the first respondent filed Civil Revision Petition before this Court. The impugned order was thereupon set aside and the matter remanded with a specific direction to take into account the yield from each tree cut and to consider all components of diminution in land value. The first respondent was also granted the liberty to adduce further evidence in support of her claims.

3. Accordingly, the original petition was considered again. In view of the statement filed by the first respondent clarifying that she is not claiming further enhanced compensation for yielding and non-yielding trees cut, other than what was ordered by the court below earlier, the claim under that head was not considered.

4. For re-evaluating the claim for compensation towards diminution in land value, the court below relied on Exts. C1 to C3 commission reports and plan. The court found that a total extent of 59 cents is affected due to the drawing of 400KV Mysore – Kozhikode transmission lines, out of which an extent of 8.75 cents is covered by the tower erected in the subject property. The court has taken the potentiality of the property into account. As per the Commission report, all civic amenities are available within a radius of 2km and Eangappuzha town is at a distance of 2km from the property. Also, Eangappuzha- Kuppayakode PWD road that connects NH212 lies on the northern side of the scheduled property. Considering the aforesaid locational features and relying on the land value fixed by the court below in OP No. 136 of 2010 and connected case, the land value of the subject property was fixed at Rs. 40,000/- per cent. It is also noticed that more than half of the property, which is a residential plot, is affected due to the drawing of electric lines. Thus, percentage of diminution is fixed at 30% for the corridor area and as far as the tower footing area is concerned, entire land value is granted. Accordingly, after deducting the amount already received, the first respondent was found entitled to compensation of