High Court of KeralaSingle JudgeCivil Revision Petition dismissed.

Power Grid Corporation of India Limited v. George Jacob and Others

Case / Petition Number:CRP No. 256 of 2019

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V. G. Arun
Judgment Date
2024-05-28
Court Decision / Holding
Civil Revision Petition dismissed; the impugned order fixing compensation for diminution in land value and the 12% interest on additional compensation from the date of tree-cutting till payment are upheld.
Final Disposition
Civil Revision Petition dismissed.

Parties to the Case

Appellants / Petitioners

  • Power Grid Corporation of India Limited

Respondents

  • George Jacob
  • Lalitha George
  • Grace George
  • Anu Jacob

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. E.M. Murugan

Counsels for Respondents

  • • Adv. V.V. Surendran
  • • Adv. P.A. Harish

Case Synopsis & Summary

The High Court of Kerala deals with a civil revision petition filed by Power Grid Corporation of India Ltd challenging an enhanced compensation ordered for diminution in land value due to the drawing of 400 kV transmission lines across the respondents’ lands in Kozhikode. The matter has a layered procedural history: an original petition seeking compensation for trees and land value; remand by this Court to determine yield from each tree and to consider all components of diminution in land value; after remand, the respondents clarified they were not seeking compensation for improvements; the court below then fixed a higher land value of Rs.35,000 per cent, allocating 25% for the corridor and 100% for the tower footprint, following locational factors such as proximity to a Government College, an LP School, and nearby roads. The petitioner challenged this computation, arguing Ext.A8 (a comparable property) and price benchmarks were misapplied, while insisting government guidelines (G.O.(Rt) No.581/2010/RD) should inform compensation. The respondents pressed that Ext.A8 showed a much higher price and should set a floor for land value (not less than Rs.35,000 per cent). The Court ultimately upheld the impugned order, noting that the court is not bound by government guidelines and that the compensation calculation followed established principles from KSEB v. Livisha and P.Raghavan v. KSEB, including 12% interest on additional compensation from the date of tree-cutting. The revision petition is dismissed. The decision affirms the lower court’s award and legal approach to diminution in land value.

Provisions of Law Cited

G.O.(Rt) No.581/2010/RD dated 04.02.2010P.Raghavan v. KSEB [CRP No.3256 of 2001]KSEB v. Livisha [(2007) 6 SCC 792]

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner argued that the enhanced compensation was computed by the lower court after remand in a manner that did not give proper weight to all relevant factors. It contended that Ext.A8 (the comparable land) is not a valid comparator for the Kozhikode properties since it involved a hotel-cum-restaurant development and different locational features. The government fair-value framework (G.O.(Rt) No.581/2010/RD) should guide, but not compel, the court’s assessment. The corporation asserted that the lower court’s fixation of Rs.35,000 per cent for land value, with 25% for the corridor and 100% for the tower area, was arbitrary and not supported by comparable evidence. It emphasized that the court rightly refused Ext.A8 as a valid comparator and relied on Ext.A11 and other locational factors; it defended the claim that the prior award already reflected fair value and that the court’s approach complied with the law and jurisprudence on diminution in land value, including the need to consider all relevant factors and to apply 12% interest on the additional compensation as per P.Raghavan v. KSEB.

Contentions of Respondents

The respondents contended that fixation of a lower land value without properly considering essential facts resulted in an inadequate diminution in land value. They argued that Ext.A8 shows a property sold at Rs.75,000 per cent and that the land value should not fall below Rs.35,000 per cent, supported by Ext.A11. They asserted Ext.A8 was not dissimilar in spirit, as it involved a similar impact from access-related development, and claimed the court below rightly treated the Ext.A8 document with caution due to its specific commercial context. They asserted the court’s consideration of factors like proximity to educational institutions and roads, and the resulting higher land value, was appropriate, and that the Government fair-value guidelines should influence, but not constrain, compensation. They urged that the lower award undervalued the loss due to diminution in land value and called for a more generous assessment consistent with earlier precedents.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
P.Raghavan v. KSEBCRP No.3256 of 2001PositiveCited by the Kerala High Court to justify awarding interest on additional compensation at 12% per annum, and to support the approach in remand proceedings.
KSEB v. Livisha[(2007) 6 SCC 792]PositiveCited for the correct method to assess diminution in land value, including situs and extent of impact, guiding the court’s approach to compensation.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE V.G.ARUN** **TUESDAY, THE 28[TH] DAY OF MAY 2024 / 7TH JYAISHTA, 1946** **CRP NO. 256 OF 2019** **AGAINST THE ORDER/JUDGMENT DATED IN OPELE NO.142 OF 2011** **OF ADDITIONAL DISTRICT COURT, KOZHIKODE** ## **REVISION PETITIONER/S:** **POWER GRID CORPORATION OF INDIA LIMITED REP BY ITS DEPUTY GENERAL MANAGER AREACODE PO, UGRAPURAM, ERNAD THALUK, MALAPPURAM DIST. BY ADV E.M.MURUGAN** ## **RESPONDENT/S:** - **1 GEORGE JACOB AGED 72 YEARS S/O.JACOB KYNADI HOUSE, AR CAMP ROAD, MARIKUNNU.P.O, KOZHIKODE-673012.** - **2 LALITHA GEORGE, AGED 64 YEARS W/O.GEORGE JACOB KYNADI HOUSE, AR CAMP ROAD, MARIKUNNU.P.O, KOZHIKODE-673012.** - **3 GRACE GEORGE, AGED 70 YEARS W/O.DR GEORGE THOMAS, REPRESENTED BY POA HOLDER GEORGE JACOB, KYNADI HOUSE, AR CAMP ROAD, MARIKUNNU PO, KOZHIKODE-673012.** - **4 ANU JACOB AGED 40 YEARS W/O.JACOB GEORGE, KYNADI HOUYSE, AR CAMP ROAD, MARIKUNNU PO, KOZHIKODE-673012. BY ADVS. SRI.V.V.SURENDRAN SRI.P.A.HARISH** ## **THIS CIVIL REVISION PETITION HAVING BEEN FINALLY HEARD ON** **29.02.2024, THE COURT ON 28.05.2024 DELIVERED THE FOLLOWING:** CRP No.256 of 2019 -2- ## **ORDER** Dated this the 28[th] day of May, 2024 The revision petitioner, Power Grid Corporation of India Ltd ('the Corporation' for short), is aggrieved by the enhanced compensation ordered to be paid to the respondents towards diminution in land value, consequent upon the drawing of 400 KV electric lines across their properties by the Corporation. The essential facts are as under; In order to facilitate drawing of 400 KV electric lines for the smooth transmission of power in the Mysore-Kozhikode sector, large number of trees were cut from the respondents' properties. According to the respondents, the drawing of high tension lines had rendered the land underneath and adjacent useless, resulting in diminution of the land value. In spite of the huge loss suffered by the respondents, only small amounts were granted as compensation. Hence, the CRP No.256 of 2019 -3- respondents filed the original petition, seeking enhanced compensation towards the value of trees cut and diminution in land value. Being dissatisfied with the enhancement of compensation awarded by the court, the respondents preferred civil revision petition and the same was allowed by this Court and the case remanded back with a direction to determine yield from each tree and to consider all components of diminution in land value including prevailing market price of the land and any new factor which may be brought to the notice of the court by the respondents. After remand, the respondents filed a statement before the court below clarifying that they are not claiming additional compensation for loss for the improvements. Accordingly, the court below considered the claim for enhanced compensation towards diminution in land value alone and passed the impugned order. 2. After remand, it was argued on behalf of CRP No.256 of 2019 -4- the respondents that, fixation of lower the land value without proper consideration of essential facts had resulted in the percentage of diminution being fixed on the lower side. It was submitted that the property involved in Ext.A8 document, which is a similar land, was sold at Rs.75,000/- per cent. Reliance was placed on the property involved in O.P.No.74 of 2010 to claim that the land value should not be less than Rs.35,000/- per cent. The findings in the Advocate Commissioner's report was also pressed into service to establish similarity between the lands involved. 3. Per contra, learned Counsel for the petitioner Corporation had argued that a fair and adequate compensation had been awarded after considering all relevant factors, including Ext.A7 fair value statement and G.O.(Rt) No.581/2010/RD dated 04.02.2010. It was contended that the property involved in Ext.A8 document is CRP No.256 of 2019 -5- not having similar locational features and is not similarly situated land and a higher price had been paid by the buyer of that property, since the transaction was commercial in nature. 4. Although respondents had relied on Ext.A8 document, the court below refused to accept the property involved in the said document as comparable land, in view of the fact that the property involved in Ext.A8 document was transferred to provide access-cum-parking space for a hotel-cum-restaurant proposed to be constructed in that property. On the other hand, the court below took note of the fact that the petition schedule properties abut the Panchayat road on the north and important places like Maikavu and Kodencherry are situated at a distance of 1 Km. The fact that, a Government College is situated within 600 metres, an LP School at 400 metres and a PWD road passes at a distance of 600 metres was taken into account. On CRP No.256 of 2019 -6- consideration of the above factors and on comparison of the petition schedule properties with the property involved in Ext.A11 document, the court below fixed the land value at Rs.35,000/- per cent, as against Rs.10,000/- per cent fixed earlier. As substantial portion of the respondent's property was found affected due to the drawing of electric lines, 25% of the land value was fixed as compensation for the corridor and 100% of the land value for the area covered by the tower. A table containing the compensation thus awarded, in accordance with the extent in the possession of each respondent, is appended below; |below;||||||||| |---|---|---|---|---|---|---|---|---| |**O.P No.**|**Extent of**<br>**affected area**<br>**in cents**||**Land**<br>**value**<br>**per**<br>**cent**|**% of**<br>**diminution**||**Compensatio**<br>**n payable**|**Compensati**<br>**on paid**|**Compensation**<br>**due**| |**OP**<br>**142/11**|**Corridor**|**Tower**||**Corridor**|**Tower**|||| |**1)George**<br>**Jacob**|**20**|**7.75**|**35,000**|**25%**|**100%**|**4,46,250**|**94,250**|**3,52,000**| |**2)Lalitha**|**250**|**-**|**35,000**|**25%**|**-**|**21,87,500**|**5,00,000**|**16,87,500**| |**3)Grace**<br>**George**|**46**|**-**|**35,000**|**25%**|**-**|**4,02,500**|**92,000**|**3,10,500**| |**4)Anu**<br>**Jacob**|**17**|**-**|**35,000**|**25%**|**-**|**1,48,750**|**34,000**|**1,14,750**| CRP No.256 of 2019 -7- In view of the decision of this Court in _**P.Raghavan v. KSEB [CRP No.3256 of 2001]**_ , the interest on the additional compensation was directed to be paid at the rate of 12% per annum from the date of cutting of trees till the date of payment. 5. Heard learned Counsel appearing on either side. 6. On careful scrutiny of the impugned order, it is seen that the compensation payable towards diminution in land value was fixed based on factors like situs of the land, the extent to which the land is adversely affected and consequent diminution in value of the land, as laid down by the Apex Court in _**KSEB v. Livisha**_ _**[(2007) 6 SCC 792].**_ Similarly, the discretion vested with the court was properly exercised by awarding 25% of the land value as compensation for the land affected due to the drawing of electric lines and 100% for the tower footing CRP No.256 of 2019 -8- area. 7. The contention of the Corporation that the Government having fixed the fair value, the court below could not have fixed a higher value is liable to be rejected since the court is not bound by the guidelines issued by the Government while fixing the compensation. The contention that the court below committed an illegality by awarding interest at the rate of 12% cannot also be sustained in the light of the decision of this Court in _**P.Raghavan** (supra)_ _**.**_ As such, I find no reason to interfere with the well considered order of the court below, rendered after taking all relevant factors into consideration. For the aforementioned reasons, the civil revision petition is dismissed. sd/- **V.G.ARUN JUDGE** Scl/