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Kerala State Electricity Board vs Chinnamma Antony

Supreme Court15 July 2008H.S. Bedi · Arijit Pasayat

Ratio decidendi

The rule this decision rests on

Compensation for loss of land value due to electricity lines passing over property must be determined by considering multiple fact-specific factors, including the situs of the land, the distance and extent of the high voltage line thereon, whether the line passes through the middle or small tract of the land, the value of the land itself, and whether the owner loses substantive rights to use the property for its intended purpose, rather than applying a standardized formula or multiplier across all cases. In cases involving diminution in value of land caused by the passage of high voltage electricity lines, compensation for fruit-bearing trees on such land should be assessed on a yield basis using an appropriate multiplier determined by the facts and circumstances of each case, rather than by application of a fixed or uniform multiplier.

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

Judgment

As delivered

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL No. OF 2008(Arising out of SLP (C) No. 18788 of 2006)
The Kerala State Electricity Board ...Appellant
Versus
Chinamma Antony ...Respondent
JUDGMENT
Dr. ARIJIT PASAYAT, J
1. Leave granted.
2. Challenge in this appeal is to the judgment of a learned
Single Judge of the Kerala High Court dismissing the Civil
Revision Petition filed by the appellant-the Kerala State

Electricity Board (in short the `Board'). Challenge in the Civil Revision was to the order passed by Learned Additional

District Judge, Thodupuzha, granting the enhanced

compensation for alleged loss suffered by the respondent

(hereinafter referred to as the `claimant') on account of drawal

of electricity line over her property. The dispute related to the

compensation awarded for diminution in land value and the

grant of interest. Relying on a full Bench decision on a Kerala

High Court in Kumba Amma v. K.S.E.B. [2002 (1) KLT 542],

the High Court dismissed the Civil Revision Petition.

3. 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 in Kamba

Amma's case (supra) 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: 2

"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.

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's case (supra) 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's case (supra) 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

3 facts and circumstances of the case, there shall be no order as to costs.

4. There is no appearance on behalf of the respondent

though notice has been served.

5. Following the view expressed by this Court in the

decision referred to above, and in The Kerala State Electricity

Board v. B. Sreekumari (2008 (5) SCC 398), we set aside the

impugned order of the High Court and remit the matter to it

for fresh consideration keeping in view the principles set out

in the decisions referred to above.

6. The appeal is allowed without any order as to costs.

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

......................................J. (H.S. BEDI)

4 New Delhi, July 15, 2008

5 6

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