Compensation for land value diminution must consider ecological and economic impacts caused by utility infrastructure, with interest applicable from the date of loss.

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.170 of 2011 directing payment of enhanced compensation to the respondent towards diminution in land value, consequent upon the drawing of 400 KV electric lines across his property. The essential facts are as under;

The respondent was in ownership and possession of landed property situated in Kodencherry village of Kozhikode Taluk. 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 respondent, only Rs.1,98,695/- 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 common order dated 30.01.2013, the court below found the 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 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 respondent was also granted the liberty to adduce further evidence in support of his claims.

3. Accordingly, the original petition was considered again. In view of the statement filed by the respondent clarifying that he 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, C2, C3 and C6 commission reports and plan. The court found that an extent of 32.5 cents is affected due to the drawing of 400KV Mysore – Kozhikode transmission lines. For assessing the potentiality of the property, the court took into account the fact that a church and an English medium school is located at a distance of 1.5 kms from the property. Likewise, Velanthode High School is at a distance of about 15 metres and the Village Office, 2 kms away from the property. Another High School is situated at a distance of 100 metres and the subject property has direct road access as well. The court below also took note of the fact that the petition schedule property was originally wet land and later, converted as agricultural land. Considering the aforesaid locational features and relying on the land value fixed by the court below in OP No. 136 of 2010, the land value is fixed at Rs. 35,000/- per cent. On being convinced that drawing of transmission lines across the property had adversely affected its value, the percentage of diminution was fixed at 30%. Accordingly, after deducting the amount already received, the respondent was found entitled to compensation of Rs. 2,43,750/- towards diminution in land value