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2025 Supreme(Online)(Mad) 7047

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.Dhandapani, J
Sree Rayalaseema Hi-strength Hypo Ltd. – Appellant
Versus
District Collector-cum-The District Executive Magistrate – Respondent
W.P.No.5641 of 2024



Advocates:
For the Appellants/Petitioners: Hari Radhakrishnan
For the Respondents: P.Ganesan, D.R.Arun Kumar

Landowners whose property is utilized for transmission infrastructure are entitled to compensation for damages sustained, and executive guidelines mandating such compensation should be applied to protect their interests, regardless of restrictive prospective clauses, to ensure fair and equitable redress.

Headnote:(A) Constitution of India - Article 226 - Indian Telegraph Act, 1885 - Sections 10 and 16 - Electricity Act, 2003 - Sections 39 and 40 - Right of Way for transmission lines - Claim for compensation for land used for erection of high tension towers - Government guidelines issued for payment of compensation for damages sustained by reason of exercise of powers under Act - Prospective vs. Retrospective applicability of compensation guidelines - Court held that landowners are entitled to compensation despite the absence of explicit retrospective provisions where guidelines intend to protect land owners' interests and uphold principles of fair compensation.

(B) Interpretation of Statutes - Government circulars and notifications - Remedial nature of compensation schemes - Prospective applicability clauses should not be construed to deny fundamental rights to compensation for land utilization, particularly when subsequent circulars reflect a legislative intent to rectify omissions in previous policies by prioritizing the interests of the land losers. (Paras 5, 7 and 8)

Facts of the case:
The petitioner, as the owner of the land, challenged an order rejecting their claim for compensation for the erection of high-tension transmission towers on their property. The authorities argued that the project was completed prior to the implementation of the compensation guidelines and that said guidelines were applicable only to new projects with prospective effect, thus excluding the petitioner's claim.

Findings of Court:
The court observed that while authorities are empowered to erect infrastructure, Section 16 of the relevant Act mandates the fixing of compensation. Finding that the denial of compensation for past projects was inequitable and that later executive orders were designed to address the interests of land losers, the court set aside the impugned order and directed the quantification of compensation.

Issues: The primary issue was whether the prohibition against retrospective application in compensation guidelines precludes a landowner from claiming damages for the use of property for transmission infrastructure installed before the issuance of such guidelines.

Ratio Decidendi: Landowners whose property is utilized for public utility infrastructure are entitled to full compensation for damages sustained. Executive guidelines aimed at providing compensation should be interpreted in a manner that favors the aggrieved party, especially where the state has adopted policies to align with the constitutional requirement of fair compensation for the exercise of eminent domain powers.

Result: Petition allowed. Impugned order quashed and matter remanded for assessment of compensation.

Table of Content
1. factual history of land disputes involving transmission line erection. (Para 1 , 2)
2. respondent's contention on prospective application of compensation guidelines. (Para 3)
3. applicability of g.o.ms.no.86 for retrospective compensation assessment. (Para 4 , 5 , 6 , 7)
4. court order remanding compensation calculation to the district collector. (Para 8 , 9)

ORDER

1.The petitioner-Company has filed the present Writ Petition praying for issuance of a Writ of Certiorarified Mandamus and call for the records pertaining to order dated 18.11.2023 passed by the first respondent in Rc.No.14639/2019/M2 and quash the same and direct the first respondent to award compensation to the petitioner under Section 10 of the Indian Telegraph Act, 1885 read with G.O.Ms.No.86, Energy (A1) Department, dated 30.10.2019 with a reasonable interest payable from the date of taking possession of the petitioner’s lands.

2. The facts that led to the filing of the present Writ Petition, are as follows:

(a) The petitioner-Company is the absolute owner of the land comprised in Survey No.217 of Thiruporur and Survey No.245/2B, Kalavakkam Village, Thiruporur Taluk, present Chengalpattu District. The petitioner-Company purchased the said lands, vide sale deed Document No.1949/2003, 1951/2003, 2239/1993, registered in the office of the Sub-Registrar, Thiruporur. In the year 2013, the second respondent, namely the Tamil Nadu Transmission Corporation Ltd., issued a Notification No.VI-3(b)/19/2011, dated 13.07.2011 for erection of 110 KV HT line for Chennai Metro Water and Desalination Plant, which was to run from Orchid Common Point to Siruseri Sub-Station. Prior to that, TANGEDCO proceedings No.78 was issued dated 10.03.2011 and press notification dated 02.06.2011 on this project.

(b) The contract for execution of the work was entrusted to M/s.IVRCL Limited, vide, work order No.LR.No./CE/TR/SE/C/TR/EC/A2/F, dated 18.10.2012 and as per the approved drawing, dated 17.05.2011. The entire line from M/s.Orchid Common point to Thaiyur for total length of about 11 Kms. was planned to be laid in the vacant salt lands belonging to the State and Central Governments. In the entire length of 11 Kms. usage of private Patta land, was not envisaged as per approved plan, dated 17.05.2011.

(c) After the work for laying the transmission line commenced, the Contractor of the project, viz., M/s.IVRCL Limited, dumped the transmission line material in the 58-cent property of the vacant land of M/s.Sree Maruthi Marine Industries Limited, being a sister-concern of the petitioner-Company and the said Company asked the Contractor for explanation. M/s.IVRCL Ltd., vide their letter dated 02.07.2013, informed M/s.Sree Maruthi Marine Ltd. that they were executing the TNEB Work for laying transmission line and also stated that they have stacked material for construction purposes for a period of three months. In response, M/s.Sree Maruthi Marine Industries Limited, vide their letter dated 08.07.2013, informed that the transmission line material was illegally dumped in their land and also gave them a notice to vacate the land within a time period of 48 hours, but they did not comply with the said instruction.

(d) The third respondent wrote to M/s.Sree Maruthi Marine Industries, requesting permission to continue storing for some more time. While so, because of the above episode IVRCL Limited illegally diverted the route through the land belonging to the petitioner-Company and started laying foundation for erection of the transmission tower. The petitioner-Company’s land is adjacent to the Government salt lands. As per the approved plan dated 17.05.2011, the transmission line was to run only through the adjacent Government land only. However, without any notice or prior information, the Contractor M/s.IVRCL Limited, had constructed the foundation base for erection of the transmission tower on the petitioner-Company’s lands.

(e) When once the petitioner-Company came to know about the const

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