High Court of KeralaSingle JudgeCivil revision petition dismissed; revised comp...

Power Grid Corporation of India Ltd. vs V.P. Poulose

Case / Petition Number:CRP No. 43 of 2022
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V.G. Arun
Judgment Date
2024-03-20
Court Decision / Holding
The civil revision petition is dismissed. The impugned order’s deduction of compensation for the value of trees from the enhanced compensation is deleted. The court below’s enhanced compensation for diminution in land value (Rs. 58,700) shall be paid within three months, without any deduction. The decision also confirms that the Government’s fixed fair value guidelines do not bind the court in assessing damages. The payment will be made on the first respondent’s application, and any deposited amount shall be released.
Final Disposition
Civil revision petition dismissed; revised compensation to be paid within three months without deduction.

Parties to the Case

Appellants / Petitioners

  • Power Grid Corporation of India Ltd., Construction Area Office, Mavelipuram Colony, Kakkanad, Kochi-6823030 (represented by Senior Assistant Engineer)
  • Power Grid Corporation of India Ltd., Chevarambalam, Kozhikode-673017 (represented by Senior Assistant Engineer, Authorized Signatory and Senior General Manager, SMT.G.Ambika Devi)

Respondents

  • V.P. Poulose, Manjapra, Ernakulam, Kerala
  • The Special Tahsildar (LA) Power Grid Corporation of India Ltd., Chevarambalam P.O., Kozhikode District
  • Kerala State Electricity Board represented by its Chairman and Managing Director, KSEB Ltd.
  • State of Kerala represented by Principal Secretary to Government, Secretariat, Thiruvananthapuram

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Millu Dandapani

Counsels for Respondents

  • • Adv. R. Harishankar
  • • S.C. for KSEB: B. Premod

Case Synopsis & Summary

This High Court of Kerala, in a Civil Revision Petition (CRP No. 43 of 2022), deals with enhanced compensation claimed by the first respondent for diminution in land value, arising from the drawing of 400 kV transmission lines across his land, in Manjapra village, Ernakulam district. The petitioners, Power Grid Corporation of India Ltd., challenged the lower court’s order granting Rs. 58,700 as compensation for diminution in land value and an earlier Rs. 38,737 paid for trees cut, while deducting on a 20% basis from the Ext.A9 valuation for the 1.630 cents of land deemed affected. The court below relied on Ext.A9, along with Exts.C1 and C1(a) Commission report, and held that access to the property via a bund road and proximity to PWD roads justified a 20% deduction from land value. The revision petition argued that no electric line crossed the petition schedule property, making the 20% deduction unwarranted, that compensation for trees should not be offset against land value, and that reliance on Ext.A9 was improper. The High Court, applying the factors laid down in KSEB v. Livisha (2007) 6 SCC 792, upheld the 20% deduction as reasonable and, citing V.V. Jayaram v. KSEB (2015) 3 KHC 453, upheld the 9% interest on the enhanced compensation. It also corrected a patent mistake in the impugned order by deleting the deduction for trees, and dismissed the revision petition with directions to pay the enhanced compensation within three months without deduction.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended that the enhanced compensation for diminution in land value was exorbitant and not supported by proper evidence. They challenged reliance on Ext.A9 and Exts.C1 and C1(a), pointing out that no electric lines actually crossed the petition schedule property and that the 20% deduction from land value for the 1.630 cents of land that appeared unaffected was unwarranted. They argued that the Rs.38,737 already paid for trees should not be offset against any enhanced land-value compensation, and that the court below’s approach was inconsistent with contemporaneous valuation. They also questioned the basis for awarding 9% interest.

Contentions of Respondents

The respondents urged that the impairment of land value was determined after considering relevant factors including the nature of the land, cultivation, and the impact of the transmission lines. They defended the 20% deduction as reasonable in light of Ext.A9 and the commissioner's findings, and argued that the court was not bound by government fair-value guidelines. They maintained that the enhanced compensation was warranted after evaluating all factors and supported the 9% interest, citing precedent such as V.V. Jayaram v. KSEB. They claimed any reliance on Ext.A9 was proper to assess the affected extent and value.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
KSEB v. Livisha[2007] 6 SCC 792PositiveCited to outline the factors to be considered in assessing diminution in land value due to transmission lines.
V.V. Jayaram v Kerala State Electricity Board[2015 (3) KHC 453]PositiveCited to justify the allowing of 9% interest on enhanced 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** **WEDNESDAY, THE 20[TH] DAY OF MARCH 2024 / 30TH PHALGUNA,** ## **1945** ## **CRP NO. 43 OF 2022** **AGAINST THE ORDER/JUDGMENT DATED 30.11.2020 IN OPELE NO.1000 OF 2012 OF VI ADDITIONAL DISTRICT COURT,** ## **ERNAKULAM** ## **REVISION PETITIONER/S:** - **1 POWER GRID CORPORATION OF INDIA LTD CONSTRUCTION AREA OFFICE, MAVELIPURAM COLONY, KAKKANAD, COCHIN - 682 3030. REPRESENTED BY SENIOR ASSISTANT ENGINEER, PRESENTLY AT CONSTRUCTION AREA OFFICE, 400/220 KV SUB STATION, KUMARAPURAM P.O., PALLIKKARA, ERNAKULAM - 683 565.** - **2 POWER GRID CORPORATION OF INDIA LTD. CHEVARAMBALAM, KOZHIKODE - 673 017 REPRESENTED BY SENIOR ASSISTANT ENGINEER (PETITIONERS 1 & 2 REPRESENTED BY THEIR AUTHORIZED SIGNATORY AND SENIOR GENERAL MANAGER SMT.G.AMBIKA DEVI, CONSTRUCTION AREA OFFICE, 400/220, KV SUB STATION, KUMARAPURAM P.O., PAILIKKARA, ERNAKULAM - 683 565.** ## **BY ADV MILLU DANDAPANI** ## **RESPONDENT/S:** - **1 V.P.POULOSE AGED 58 YEARS S/O.POULOSE, VALLOORAN HOUSE, MANJAPRA PO, ERNAKULAM, KERALA - 683 581.** - **2 THE SPECIAL TAHSILDAR (LA) POWER GRID CORPORATION OF INDIA LTD., CHEVARAMABALAM P.O., KOZHIKODE DISTRICT - 673 017.** - **3 KERALA STATE ELECTRICITY BOARD REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR, KSEB LTD., VAIDYUTHI BHAVAN, PATTOM (PO), THIRUVANANTHAPURAM - 695 004.** CRP No.43 of 2022 -2- **4 STATE OF KERALA REPRESENTED BY PRINCIPAL SECRETARY TO GOVERNMENT, SECRETARIATE, THIRUVANANTHAPURAM - 695 001.** **BY ADV R.HARISHANKAR** ## **OTHER PRESENT:** **SR.GP.PREETHA K.K; SC FOR KSEB B.PREMOD** **THIS CIVIL REVISION PETITION HAVING BEEN FINALLY HEARD ON** **20.12.2023, THE COURT ON 20.03.2024 DELIVERED THE FOLLOWING:** CRP No.43 of 2022 -3- ## **ORDER** Dated this the 20[th] day of March, 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 first respondent towards diminution in land value, consequent upon the drawing of 400 KV electric lines across the first respondent's property by the Corporation. The essential facts are as under; The first respondent is in ownership and possession of landed property having an extent of 28 cents comprised in Sy.No.597/6 in Block No.20 of Manjapra Village. The land was cultivated with various yielding and non-yielding trees. According to the first respondent, to facilitate drawing of the lines and smooth transmission of power, large number of trees were cut from his CRP No.43 of 2022 -4- property. The drawing of high tension lines rendered the land underneath and adjacent to the lines useless, resulting in diminution of the value of the property. In spite of the huge loss suffered by the first respondent, only Rs.38,737/- was paid as compensation towards the value of yielding and non-yielding trees cut. Surprisingly, no compensation was granted for diminution in land value. Hence, the original petition was filed, seeking enhanced compensation towards the value of trees cut and diminution in land value. 2. The court below rejected the claim for enhanced compensation for the value of trees cut since no evidence in support of the claim was produced. As far as the claim for enhanced compensation towards diminution in land value is concerned, the court below relied on Ext.A9 document as well as Exts.C1 and C1(a) commission report and plan. The court took note of the fact CRP No.43 of 2022 -5- that while Ext.A9 property is having PWD roads on two sides, the access to the petition schedule property is through a bund road which leads to a public road. Based on the said factors, the court below fixed the land value of the first respondent's property by deducting 20% of the value of the property in Ext.A9 document. As per Exts.C1 and C1(a), the Commissioner has reported that only an extent of 1.630 cents situated on the eastern boundary of the first respondent's property is affected due to the drawing of electric lines. The court below also took note of the fact that no electric line has been drawn across the petition schedule property. Hence, for the affected extent of 1.630 cents, compensation of 20% of the land value was granted. Accordingly, the first respondent was found entitled to compensation of Rs.58,700/-. 3. Heard Adv.Poulose Vallooran for the first respondent and Adv.Millu Dandapani for the CRP No.43 of 2022 -6- Corporation. 4. Learned Counsel for the Corporation contended that, compensation towards diminution in land value granted is exorbitant and there is no rationale in granting 9% interest on that amount. The court below also erred in relying on Ext.A9 for fixing the land value of the first respondent's property. As no electric lines were drawn across the petition schedule property, 20% of land value granted for the 1.630 cents, which is unaffected, is exorbitant. Per contra, learned Counsel for the first respondent argued that the enhancement was granted after considering all relevant factors. 5. A careful scrutiny of the impugned order reveals that the claim for enhancement of compensation towards the value of trees cut was rightly rejected since no supporting material, other than the findings in the Advocate Commissioner's report, was made available. Even, CRP No.43 of 2022 -7- according to the Commissioner, only stumps of the trees cut could be seen at the time of inspection. The court below also noticed that the Advocate Commissioner had calculated the income on the basis of information given by the people residing near to the petition schedule property. Therefore, the court below rightly held that the evidence let in by the first respondent was not sufficient to discard the contemporaneous valuation statement prepared by the Corporation. 6. As far as the diminution in land value is concerned, the factors to be taken into consideration, as laid down in _**KSEB v. Livisha**_ ## _**[(2007) 6 SCC 792]**_ are as under; “ _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_ CRP No.43 of 2022 -8- _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.”_ On careful scrutiny of the impugned order, it is seen that the compensation was enhanced after taking all the above factors into consideration. The nature of the land, the cultivation therein and the manner in which the land was affected by drawing of the lines are all seen considered for fixing the land value as well as the percentage of diminution. The court below has deducted 20% of the land value of the property in Ext.A9 document, which according to me, is reasonable. The discretion was properly exercised in granting 20% of the land value as compensation for the affected land. 7. The contention of the Corporation that the Government having fixed the fair value of the CRP No.43 of 2022 -9- properties in that area, the court below could not have fixed a higher value is liable to be rejected since, while assessing the damage sustained and fixing the compensation, the court is not bound by the guidelines/orders issued by the Government. The contention that the court below committed an illegality in awarding 9% interest cannot also be sustained in the light of the decision of this Court in _**V.V. Jayaram v**_ ## _**Kerala State Electricity Board [2015 (3) KHC**_ _**453].**_ Having held so, I find a patent mistake in the order, which is liable to be corrected in exercise of this Court's revisional jurisdiction. It is seen that initially the Corporation had paid Rs.38,737/- towards the value of trees cut alone and had refused to pay any amount towards diminution in land value. As per the impugned order, the court below rejected the claim for enhancement of compensation towards value of CRP No.43 of 2022 -10- trees cut and awarded compensation towards diminution in land value. Even though the court below did not grant compensation for the value of trees cut, the impugned order contains a direction to deduct the compensation paid towards value of trees cut from the enhanced compensation awarded. This may be interpreted as a direction to deduct the compensation towards value of trees paid by the Corporation from the compensation towards diminution in land value granted by the court below. The impugned order, to that extent, need to be corrected. Accordingly, the direction in the impugned order to deduct the compensation paid towards value of trees cut from the enhanced compensation awarded is deleted. The compensation awarded by the court below shall be paid within three months, without any deduction. If any amount is deposited pursuant to the order of this Court or otherwise, the same shall forthwith be released to the first respondent, CRP No.43 of 2022 -11- on his filing appropriate application. The civil revision petition is dismissed accordingly. Sd/- **V.G.ARUN JUDGE** Scl/