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Kerala State Electricity Board vs C.P. Sivasankara Menon

Supreme Court29 July 2008Mukundakam Sharma · Arijit Pasayat

Ratio decidendi

The rule this decision rests on

When an earlier Full Bench decision of the Kerala High Court establishing a blanket principle for compensation in cases of trees affected by electricity lines has been set aside by the Supreme Court, a Single Judge of the High Court acting on that superseded decision cannot sustain an order in substantially similar cases; the matter must be reconsidered on a case-by-case basis according to the principles laid down in the superseding Supreme Court judgment. In determining compensation for fruit-bearing trees affected by acquisition or use of land, the compensation must be assessed on the basis of the yield from the trees, with the specific multiplier applied being dependent upon the facts and circumstances of each particular case rather than a fixed or uniform multiplier. When this Court has remitted a category of matters to the High Court for fresh reconsideration based on Supreme Court judgments that overturn the legal principles previously applied, subsequent orders by the High Court in the same category of cases that do not comply with the directions given on remand must be set aside and the matters recommitted for consideration in accordance with the correct legal principles.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.4702 OF 2008(Arising out of S.L.P. (C) No.12436 of 2006)
Kerala State Electricity Board ...Appellant
Versus
C.P. Sivasankara Menon ...Respondent
With
Civil Appeal No.4703/2008 @ S.L.P. (C) No.12438/2006
JUDGMENT
Dr. ARIJIT PASAYAT, J.
S.L.P.(C) No.12436 and S.L.P. (C) No. 12438 of 2006
1. Leave granted.
2. Challenge in these appeals in each case is to the1judgment of a learned Single Judge of the Kerala High Court

dismissing the Civil Revision Petition filed by the appellant. In

the civil revision petition, challenge was to the order passed by

learned Additional District Judge, North Paravur, in O.P.

(Electricity) No.40/1996 and 43/96. Several revision petitions

were disposed of on the basis of an earlier decision of the High

Court in CRP No.507 of 2001 by order dated 03.12.2004.

3. It is submitted by learned counsel for the appellant

that the view of the High Court is not correct. The appellant-

Board cut down certain yielding rubber trees, 19 coconut

trees, pepper vines, areca nut trees and mango trees for the

purpose of laying down 220 KV electric line. The respondents

were not satisfied with the awarded amount as determined for

payment as compensation. O.P. No.40/1996 in one case and

43/1996 in the other case were filed before the Trial Court

claiming additional compensation, which was allowed. The

stand of the appellant in this case is that the relevant position

in law was not kept in view by the High Court. The dispute

related to the compensation awarded for valuation of the yield

2 of the trees and also for the future age of the same and the

grant of interest.

4. In support of the appeal, learned counsel for the

appellant-Board submitted that the High Court's judgment is

clearly unsustainable as the Full Bench decision of Kerala

High Court in Kumba Amma v. K.S.E.B. (2000 (1) KLT 542)

was set aside by this Court in The Kerala State Electricity

Board v. Livisha etc. etc. [2007(6) SCC 792] by the common

judgment in Civil Appeal No. 289 of 2006 and other Civil

Appeals. This Court set aside the impugned order in each case

and remitted the matter back to the High Court for a fresh

consideration. It was, inter-alia, observed as follows:

"10. The situs of the land, the distance between the high voltage electricity line laid thereover, the extent of the line thereon as also the fact as to whether the high voltage line passes over a small tract of land or through the middle of the land and other similar relevant factors in our opinion would be determinative. The value of the land would also be a relevant factor. The owner of the land furthermore, in a given situation may lose his substantive right to use the property for the purpose for which the same was meant to be used.

3 11. So far as the compensation in relation to fruit-bearing trees are concerned the same would also depend upon the facts and circumstances of each case. We may, incidentally, refer to a recent decision of this Court in Land Acquisition Officer v. Kamadana Ramakrishna Rao (2007 (3) SCC 526) wherein claim on yield basis has been held to be relevant for determining the amount of compensation payable under the Land Acquisition Act; same principle has been reiterated in Kapur Singh Mistri v. Financial Commr. & Revenue Secy. to Govt. of Punjab (1995 Supp. (2) SCC 635), State of Haryana v. Gurcharan Singh (1995 Supp. (2) SCC 637), para 4 and Airports Authority of India v. Satyagopal Roy (2002 (3) SCC 527). In Airports Authority it was held: (SCC p. 533, para 14)

"14. Hence, in our view, there was no reason for the High Court not to follow the decision rendered by this Court in Gurcharan Singh case and determine the compensation payable to the respondents on the basis of the yield from the trees by applying 8 years' multiplier. In this view of the matter, in our view, the High Court committed error apparent in awarding compensation adopting the multiplier of 18."

12. We are, therefore, of the opinion that the High Court should consider the matter afresh on the merit of each matter having regard to the fact situation obtaining therein. The impugned judgments, therefore, cannot be sustained. These are set aside accordingly. The matters are remitted to the High Court for consideration thereon afresh. The appeals are allowed. In the facts and circumstances of the 4 case, there shall be no order as to costs."

5. There is no appearance on behalf of the respondents

in each case though notice has been served.

6. Following the view expressed by this Court in the

decisions referred to above, we set aside the impugned order

of the High Court in each case and remit the matter to it for

fresh consideration keeping in view the principles set out in

the decision referred to above.

6. The appeals are allowed without any order as to

costs.

..........................................J. (Dr. ARIJIT PASAYAT)

..........................................J. (Dr. MUKUNDAKAM SHARMA) New Delhi, July 29, 2008

5

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