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Supreme Court of India

THE KERALA STATE ELECTRICITY BOARDversusB. SREEKUMARI

Citation
2008 INSC 384
Decided
14 March 2008
Disposal
Case Allowed

Holding

The Supreme Court set aside the High Court’s order and remitted the matter for fresh consideration, following the principles laid down in KSEB v. Livisha.

Summary

The Kerala State Electricity Board (KSEB) installed a high‑voltage electricity line over the land of B. Sreekumari, allegedly reducing the market value of her property. The trial court enhanced the compensation awarded to her, and KSEB filed a civil revision petition before the Kerala High Court. The High Court dismissed the revision, relying on the Full Bench decision in Kamba Amma v. KSEB. KSEB appealed to the Supreme Court, contending that the Kamba Amma decision had been overruled by the Supreme Court’s judgment in KSEB v. Livisha. The Supreme Court held that, in view of the Livisha ruling, the High Court’s order could not stand and set it aside, remitting the matter back to the High Court for fresh consideration of compensation based on the facts of each case. The appeal was allowed without costs.

Issues considered

  • Whether the Kerala High Court's reliance on Kamba Amma v. KSEB is valid after that decision was set aside by the Supreme Court in KSEB v. Livisha.
  • How compensation for diminution of land value caused by an electricity line should be determined, including consideration of yield from fruit‑bearing trees and interest.

Subjects

compensationdiminution of land valueelectricity lineland acquisitioninterestSupreme Courtremandhigh courtKSEBproperty rights

Judgment

                       [2008] 5 S.C.R 71


       THE KERALA STATE ELECTRICITY BOARD                          A
                           v.
                    B. SREEKUMARI
            (Civil Appeal No. 1994 of 2008)
                      MARCH 14, 2008
                                                                   B
    (DR. ARIJIT PASAYAT AND P. SATHASIVAM, JJ.)

      Compensation - Electricity line drawn over the property
of claimant - Compensation for diminishing value of the
property - Enhanced by trial Court - Revision petition             c
dismissed by High Court - Correctness of - Held: In view of
law laid down by Supreme Court in the case of Kera/a State
Electricity Board vs. Livisha, matter remitted to High Court
for determination of the issues afresh.
     Appellant had drawn electricity line passing over the         D
property of respondent, thereby diminishing its value. Trial
Court enhanced the compensation ordered by the
authorities for the alleged loss suffered by her. Revision
petition filed thereagainst by the Electricity Board was
dismissed by the High Court relying upon the Full Bench            E
decision of the Kerala High Court in Kamba Amma vs.
KSEB. Hence the present appeal.
    Appellant-Board contended that the High Court's
judgment is clearly unsustainable as the Full Bench
decision in Kamba Amma's case was set aside by this                F
Court in The Kera/a State Electricity Board v. Livisha etc. etc.
     Allowing the appeal, the Court
      HELD: Following the view expressed by this Court
in the case of Kera/a State Electricity Board v. Livisha etc. G
etc., the impugned order of the High Court is set aside
and the matter is remitted to it for fresh consideration
keeping in view the principles set out in the said decision.
(Para - 5) [74-B, C]
                              71                                   H
    72        SUPREME COURT REPORTS                  [2008] 5 S.C.R.


A        The Kera/a State Electricity Board v. Livisha etc. etc.
    (2007) 6 sec 792 - relied on.

          Kamba Amma vs. E. S.E.B. (2003) 1 KLT 542 - referred
    to.
B        CIVILAPPELLATE JURISDICTION: Civil Appeal No. 1994
    of 2008.
         From the final Judgment and Order dated 08.03.2006 of
    the High Court of Kerala at Ernakulam in CRP No. 151 of 2006.
c         M.T. George for the Appellant.
          The Judgment of the~ Court was delivered by
          DR. ARIJIT PASAYAT, J. 1. Leave granted.
         2. Challenge in tbis appeal is to the judgment of a learned
D 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
  No. 1 Mavelikara granting the enhanced compensation for
E 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 valui3 and the grant of interest. Relying on
  a full Bench decision on a Kerala High Court in Kumba Amma
F 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
G Amma's case (supra) was set aside by this court in The Kera/a
  State Electricity Board v. Livisha etc. etc.[2007(6) SCC 792)
  by the common judgmen~ 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
H
              THE KERALA STATE ELECTRICITY BOARD v.                      73    '
                B. SREEKUMARI [DR. ARIJIT PASAYAT, J.]
    >     fresh consideration. It was inter-alia observed as follows:         A
               "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 B
               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.                                                        c
\
               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
                                                                              D
     ..        Acquisition Officer v. Kamadana Ramakrishna Raofd
               wherein claim on yield basis has been held to be relevant
               for determining the amount of compensation payable under
               the Land Acquisition Act; same prililciple has been
               reiterated in Kapur Singh Mistri v. Financial Commr. &
               Revenue Secy. to Govt. of Punjab 6 , State of Haryana v. E
               Gurcharan Singh7 , para 4 and Airports Authority of India
               v. Satyagopal Roy8. In AirportsAuthority8 it was held: (SCC
               p. 533, para 1.4)
               "14. Hence, in our view, there was no reason for the High       F
     -"
                Court not to follow the decision rendered by this Court in
                Gurcharan Singh case7 and determine the compensation
              . payable to the respondents on the basis of the yield from
                the trees by applying 8 yea'fs' multiplier. In this view of the
                matter, in our view, the High Court committed error
                                                                                G
                apparent in awarding compensation adopting the multiplier
                of 18."
~
    -r         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. H
    74        SUPREME COURT REPORTS                   [2008] 5 S.C.R.


A        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
         case, there shall be no order as to costs.
B        4. There is no appearance on behalf of the respondent
    though notice has beE~n served.
         5. Following the view expressed by this Court in the
    decision referred to above, we set aside the impugned order of
c   the High Court and remit the matter to it for fresh consideration
    keeping in view the principles set out in the decision referred to
    above.
         6. The appeal is allowed without any order as to costs.
D S.K.S.                                            Appeal allowed.


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