THE POWER GRID CORPORATION OF INDIA LIMITEDversusCENTURY TEXTILES & INDUSTRIES LIMITED & ORS.

                           [2016) 11 S.C.R.41



     THE POWER GRID CORPORATION OF INDIA LIMITED                            A
                                    v.
     CENTURY TEXTILES & INDUSTRIES LIMITED & ORS.
                    (Civil Appeal No. 10951 of2016)
                         DECEMBER 14, 2016                                  B

             [A. K. SIKRI AND R. BANUMATHI, JJ.]
        Electricity Act, 2003:
         s.164 and ss.2(5)114168169 - Exercise of powers of Telegraph
  Authority in certain cases - Indian Telegraph Act, 1885 - ss.10,          c
  15, 16 - Transmission Project - Proposed power lines to be laid by
  Power Grid, towers to be erected therefor on the land leased out to
  Century Textiles for mining - Right of Power Grid to erect such
  towers - Writ petition by Century Textiles contending that erection
  of towers would render a large chunk of mining area unusable
                                                                            D
  precluding it from doing any blasting for mining purposes, thus the
, towers b_e realigned - Dismissed by Single Judge as also by Division
  Bench, however directing the District Collector to work out the
  compensation payable to Century Textiles/State Government - Held:
  Power Grid has all the powers vested in a Telegraph Authority under
  the 1885 Act, including the power to eliminate any obstruction in         E
  the laying down of power lines - Thus, it was within its right to
  erect the towers over the mining area - Further, change in route
  alignment of proposed power line was unfeasible as out of 410
  towers which were to be erected under the project, 408 towers were
  already erected when the writ petition was filed by Century
                                                                            F
  Textiles - Division Bench without differing with this factual position;
  including the fact that the project in question was in public interest,
  allowed the completion of project - Indian Electricity Ruf.es,
  1956 - r.83(2) - Electricity laws.                                  '
       s.164 - Work of Licencees Rules, 2006 - r.3(l)(a) and r.3
 sub-rule(4) - Requirement of prior consent of owner of land before         G
 laying transmission lines -Applicability of- Plea of Century Textiles
 that erection of towers on the mining area was done without its
 prior consent - Held: In the instant case, r.3(l)(a) of the, 2006
 Rules is not applicable in view of s.164 of the Electricity Act, as
 Power Grid has all the powers vested in a Telegraph Authority -            H
                                  41
42            SUPREME COURT REPORTS                        rzo16111 s.c.R.


A    d(l) of 2006 Rules ceases to apply in the case of Power Grid by
     virtue of the clause contained in sub-rule(4) of 1:3 which states that
     nothing contained in 1:3 shall effect powers conferred upon a
     licensee (Power Grid) u/s.164 of the Electricity Act.
           -Indian Telef.:raph Act. 1885 - s.16(c) - Co111pensatio11 claim
B    under - Appropriate authority - Erection of towers for laying power
     transmission lines within mining lease area - Alleged loss to the
     lessee (Century Textiles) and to the State government - Division
     Bench directed the District Collector to work out the compensation
     payable to Century Textiles/State Govemment - Held: No claim for
     compensation was made either by Century Textiles or State
c    Government - Further, if at all Century Textiles seeks compensation,
     appropriate action for it would be to file a suit before District Judge.
           Allowing the appeals by Power Grid, the Court
          HELD: 1.1 The submission made by Century Textiles was
D   that its permission was not obtained which was needed as per
    Rule 3 of the Work of Licencees Rules, 2006. In the instant
    case, the aforesaid Rule is not applicable in view of Section 164
    of the Electricity Act, 2003. It is not in dispute that in exercise of
    powers under Section 164 of the Electricity Act, the powers of
    Telegrap~ Authority exercisable under Indian Telegraph Act,
E · 1885 have been conferred upon the Power Grid. It may also be
    mentioned that a Central Transmission Utility (CTU) is a deemed
    licensee under the second proviso to Section 14 of the Electricity
    Act. Power Grid is a Central Transmission Utility and is,
    therefore, a deemed licensee under the Electricity Act. This
F   coupled  with the fact that Power Grid is treated as Authority under
    the Telegraph Act, 1885, it acquires all such powers which are
    vested in a Telegraph Authority under the provisions of the said
    Act including power to eliminate any obstruction in the laying
    down of power transmission lines. [Paras 18 to 201 (51-D-E, F-G;
    52-C-D)
G
           1.2 As per the provisions of the Telegraph Act, 1885,
     unobstructed access to lay down telegraph and/or electricity
     transmission lines is art imperative in th.e larger public interest.
     Electrification of villages all over the country and availability of
     telegraph lines are the most essential requirements for growth
H    and development of any country, economy and th!' well-being/
    THE POWER GRID CORPORATION OF INDIA LTD. v.                           43
        CENTURY TEXTILES & INDUSTRIES LTD.

progress of the citizens. The legislature has not permitted any            A
kind of impediment/ obstruction in achieving this objective and
through the scheme of the Telegraph Act, 1885 empowering the
licensee to lay telegraph lines, applied the same, as it is, for laying
down the electricity transmission lines. Powers of the Telegraph
Authority conferred by Sections 10, 15 and 16 of the Telegraph
                                                                           B
Act, 1885, stand vested in and are enjoyed by the Power Grid.
[Para 20] 152-E-F]
      1.3 As Power Grid is given the powers of Telegraph
Authority, Rule 3(1) of the 2006 Rules ceases to apply in the
case of Power Grid by virtue of the clause contained in sub-rule
(4) of Rule 3. Thus, the argument of Century Textiles that the             c
impugned action of the Power Grid was contrary to the provisions
of the Electricity Act is rejected. [Paras 22, 23) [55-B-C]
      1.4 The action of the Power Grid, in the given
circumstances, by not shifting the transmission lines is also not
found to be arbitrary. From the facts noted above, it becomes              D
apparent that not only it was unfeasible to change the alignment
as almost entire work had already been completed by the time
Century Textiles started protesting against this move, even
otherwise, the Power Grid had given sufficient explanation to
point out that all relevant factors/ aspects were kept in mind while       E
laying down the impugned transmission lines. (Para 24) (55-D-E)
      2. No claim for compensation was made by Century Textiles
in the writ petition or by the State government before the High
Court. Furthermore, the Division Bench could not have given
the task to District Collector, which was contrary to the provisions       F
of section 16 (c), Telegraph Act, 1885 which are extended to laying
down of electricity lines. As per this provision, such an authority
vests with the District Judge. It is made clear that if Century
Textiles feels that it is entitled to any compensation, the
appropriate course of action is to file a suit before the concerned
District Judge for this purpose. [Paras 25, 26) (56-B-D]                   G
     CIVIL APPELLATE JURISDICTION : Civil Appeal No. I 0951 ~
of2016.
      From the Judgment and Order dated 02.08.20 I 0 of the High Court
of Judicature at Chhattisgarh at Bilaspur in Writ Appeal No. 42 of2008
                                                                           H
44            SUPREME COURT REPORTS                        f2016l l l S.C.R.


A                                    WITH
           C. A. No. 8951 of201 l
           C. A. No. 10953 of2016
           C. A. No. 8342 of2009.
           Maninder Singh, ASG., S. B. Upadhyay, Ravindra Shrivastava,
B
     Sr. Advs., Ju gal Kishor Gilda, AAG, Pawan Upadhyay, Kaustuv Pathak,
     Ratik Sharma, Ms. Sharmila Upadhyay, Akshat Shrivastava, Pu Ikit Tare,
     Ms. Akansha Sisodia, Sunil Kumar, Ms. Rohini Prasad, Mrs. Sarla
     Chandra, Aniruddha P. Mayee, A. Selvin Raja, Mohit Kumar Shah, Rituraj
     Che,udhary, Atul Jha, Sandeep Jha, Dharmendra Kumar Sinha, Vijay
c    Kumar Ahluwalia, Advs., for the appearing parties.
           The Judgment of the Court was delivered by
            A. K. SIKRI, J. Judgment and order dated August 02, 20 I 0
     passed by the High Court of Chhattisgarh in Writ Appeal No. 42 of
     2008, which was filed by Century Textiles & Industries Limited, is the
.D   subject matter of challenge in Civil Appeal Nos. 10951 and I 0953 of
     2016. These appeals are by both the parties. The aforesaid writ appeal
     was filed by Century Textiles & Industries Limited against the judgment
     dated March II, 2008 passed by the learned Single Judge of the said
     High Court in Writ Petition (Civil) No. 1909 of2007 filed by it in which
E    the Power Grid Corporation of India Limited was the main contesting
     respondent. Since both the parties have challenged the impugned order,
     for the sake of clarity, we would refer Century Textiles & Industries
     Limited as the 'writ petitioner' and the Power Grid Corporation oflndia
     Limited as the 'Poll'er Grid'.
F        2. The writ petitioner is engaged in the manufacture of cement. It
  is having its cement manufacturing unit at Baikunth. Limestone is one of
  the minerals which is required for manufacturing cement and to facilitate
  the supply thereof, the State ofChhattisgarh (hereinafter referred to as
  the 'State Government') had granted the writ petitioner mining lease in
  the vicinity of the manufacturing unit. For this purpose, the writ petitioner
G had submitted mining plan, duly approved by the Indian Bureau of Mines
  (for short, 'IBM'), Government oflndia, of the area of74.843 hectares
  at village Tulsi and Bahesar. The lease period is 3.0 years. There is a
  registered lease deed dated September 30, 2002 executed between the
  writ petitioner and the State Government. Thereafter, the writ petitioner*
H had submitted an application for modification of the mining plan, which
   THE POWER GRID CORPORATION OF INDIA LTD. v.                                    45
 CENTURY TEXTILES & INDUSTRIES LTD. [A. K. SIKRI, J.]

was also approved on January 14, 2005 by the Government of India,                  A
subject to certain conditions.
       3. The ~ower Grid, which is a Government oflndia Undertaking,
is primarily engaged in the work of providing framework for the
distribution and transmission of electricity generated by various generating
companies throughout the country. In a way, it is discharging function             8
which is in public interest. It is well-known that India is an energy deficient
country, notwithstanding rapid expansion in this direction in the last few
years, and particularly after the entry of private sector, insofar as
production of electricity is concerned. Still, there are many households
where lighting of even electrical bulb is a dream. Moreover, the socio-
economic development of the country depends on this critical                       c
infrastructure. Keeping in view these parameters, one of the objectives
of the Power Grid is to transmit the energy to remote areas.
       4. At the time when the aforesaid mining lease dated September
30, 2002 was executed in favour of the writ petitioner, there existed a
400 KV transmission line outside the boundary of the existing mining               D
lease of237.003 hectares and the said transmission line (Si pat- Raipur)
was to run parallel along the existing lines. In fact, this transmission line
was completed and commissioned by the Power Grid in November 1999,
work whereof had commenced in the year 1996.
       5. Since the Power Grid had to lay the transmission lines parallel          E
to the existing lines to erect towers for laying of the said transmission
lines, it was observed that a part thereof was going over the land which
was leased out to the writ petitioner for mining purposes. Notice in this
behalf was served by the Power Grid to the writ petitioner on October
03, 2006 for erection of the said towers. At the same time, excavation             F
work for erection of towers also started. In this notice, it was inter alia
mentioned that 400 KV Sipat-Raipurtransmission line would pass through
the property leased out to the writ petitioner for mining. The writ petitioner
replied to the said notice vi de its communication dated October 18, 2006
pointing out that the area earmarked for excavation and erection of towers
by the Power Grid comes under mining lease area and there was a                    G
possibility that the tower to be put would get damaged due to blasting
operation done at the mines as the area comes under the danger zone.
In these circumstances, the Power Grid was requested to relocate the
area for construction of tower, which should be far away from the leased
area.                                                                              H
46            SUPREME COURT REPORTS                           f2016111 S.C.R.



A           6. However, as the Power Grid did not accede to the request of
    the writ petitioner, the writ petitioner approached the High Court by
    filing the aforesaid writ petition stating that the three towers in the mining
  · area, as also the adjacent area to the mining area proposed to be
    constructed by the Power Grid with high tension electricity, line would
    force the writ petitioner to stop mining in the area nearby the proposed
B
    towers as it would not be able to do any blasting for the purpose of
    mining. It was contended that ifthe towers are allowed to be erected on
    the land covered by the mining lease, the writ petitioner would be precluded
    from carrying out mining over the adjacent area of towers of 500 mts.
    As per the relevant provisions of law (to which we shall advert to at
c appropriate stage) and it would seriously onesdize the operations of the
    writ petitioner. It was contended that the mining area carries reserve of
     I 0 million ones oflimestone which is needed for manufacture of cement
    in the cement plant of the writ petitioner. It was, thus, prayed in the writ
    petition that the Power Grid be not allowed to erect any tower over the
    mining lease area and reallocate the same.
D
            7. The Power Grid contested the writ petition by filing its counter
    affidavit. Maintainability of the writ petition was questioned on the ground
    that the relief claimed in the writ petition is beyond the scope of writ
    jurisdiction under Articles 226 and 227 of the Constitution of India. It
    was further stated that the Power Grid is a Central Transmission Utility
E of the country. It undertakes transmission of electric power through
    Inter-State Transmission System to establish and operate Regional and
    National Power Grids. Sipat Generation Scheme is to come up and
    surplus power of Eastern Region would be pooled through 400 KV Sipat-
     Raipur Transmission line for dispersal of surplus generation of power in
F Wester Region. Length of the above corridor is 148 kms. And estimated
    cost of the project is Rs.199 crores. Eighty five percent of the work has
    already been completed with an investment of Rs.170 crores. Out of
    400 towers to be erected, 390 towers have already been erected. The
    tower line under construction runs parallel to the 400 KV Korba-Raipur
    power line which is in existence since 1999. The writ petitioner has
G
    obtained leasehold right in the year 2002 and over and across their
    leasehold land, Korba-Raipur transmission line already existed and even
    then they could carry on their mining activities. They have obtained the
     leasehold rights without obtaining clearance certificate from the Electrical
     Inspector. The map submitted by the writ petitioner for obtaining mining
H
   THE POWER GRID CORPORATION OF INDIA LTD. v.                                 47
 CENTURY TEXTILES & INDUSTRIES LTD. [A. K. SIKRI, J.]

lease was submitted without showing the existence of 400 KV Korba-             A
Raipur transmission line established by the Power Grid in the year 1999.
The writ petitioner has its explosive magazine building in the same area
and blasting near the magazine area is also prohibited.
       8. The learned Single Judge, after hearing the writ petitioner,
dismissed the writ petition filed by it holding that under the relevant         B
provisions of the Indian Telegraph Act, 1885, the Electricity Act, 2003,
and Rules framed thereunder, the Power Grid was within its right to
erect those towers. On facts also the learned Single Judge took the
view that since the work had started long ago, and even earlier to the
grant of mining lease in favour of the writ petitioner, and further that out
of 410 towers to be erected, 408 towers had already been erected, it
                                                                                c
would not be possible at that stage to change the alignment. These
factual aspects are ummarized in para 25 of the judgment of the learned
Single Judge and we would like to reproduce the same here at this stage:
       _"25. From the pleading of the respective parties, it is observed
        that:                                                                   D

        (i) there is already existing 400 KV Transmission Line from Korba
        to Raipur erected in the year 1999 at a distance of about I 00
        meters from the proposed power line. The petitioner cannot do
        blasting operations in the vicinity of300 meters from the existing
        power line also, thus only 100 meters strip oflease hold land and       E
        only a short span of two towers would be affected by erection
        of the new transmission line;
        (ii) The Explosive Magazine Building of the company is also
        situated in the same area. That also prohibits the petitioner from
        using explosives in its vicinity for the purpose of mining lime         F
        stone;
        (iii) Rule 83(2) of the Indian Electricity Rules, 1956 prohibits
        blasting for any purpose within 300 meters from the boundary of
        sub-station or from the high voltage of extra-high voltage electric
        supply lines or tower structure without the consultation of the         G
        owner of such sub-station or electric supply lines or tower
        structures and in case of mining lease hold area, without the
        written permission of the Chief Inspector of Mines or the
        Electrical Inspector of Mines;
                                                                                1--1
48            SUPREME COURT REPORTS                          [2016) 11 S.C.R.



A            (iv) Out of 410 towers to be erected in a span of 149.43 km.,
             408 towers have already been erected by respondent No. I and
             only two towers remains to be erected so as to complete the
             project; and
             (v) The transmission line under construction runs parallel to the
B            other existing line commissioned in the year 1999 and there are
             field limitation as also technical limitations enumerated by the
             respondent No. l in Para 5.16 of their affidavit making the change
             in the said route alignment of Sipat-Raipur transmission
             completely impossible."

c           9. The writ petitioner challenged the said order in appeal. The
     Division Bench, vide the impugned judgment, has not granted the relief
     insofar as changing the site of erection of towers is concerned. At the
     same time, it has taken the view that once the towers are erected on the
     area as planned, which falls within the mining lease area, it would cause
     loss not only to the writ petitioner but even to the State Government
D    which will be deprived of royalty. A direction is given to the District
     Collector to work out the compensation that would be payable to the
     writ petitioner. It is further observed that ifthe District Collector comes
     to the conclusion that compensation is also payable to the State
     Government, he would refer the matter to the State Government for
E    constituting a High Powered Committee for arriving at the quantum of
     compensation.
             l 0. Insofar as the writ petitioner is concerned, it is not entirely
     satisfied with the aforesaid outcome as, according to it, the Power Grid
     should not be allowed to erect any towers over the mining area. That is
F    the reason for filing the special leave petition by the writ petitioner, out
     of which the instant Civil Appeal arises. Insofar as the Power Grid is
     concerned, it has challenged the direction of the High Court in referring
     the matter to the District Collector for quantifying the compensation/
     damages to be paid to the writ petitioner as, according to it, no such
     direction could be given and, in any case, the District Collector has no
G    authority to decide the issue of compensation.
            11. Mr. Maninder Singh, learned Additional Solicitor General, and
     Mr. S.B. Upadhyay, learned senior counsel, argued on behalf of the
     Power Grid, whereas Mr. Shrivastava, learned senior counsel, argued
     for the writ petitioner, and Mr. Gilda, Additional Advocate General,
H    appeared for the State Government.
   THE POWER GRID CORPORATION OF INDIA LTD. v.                                 49
 CENTURY TEXTILES & INDUSTRIES LTD. [A. K. SIKRI, J.]

       12. We may mention here that two more writ petitions were filed          A
in the High Court: one by Mr. Ram Naresh Singh and the other by Ajay
Munjal Memorial Trust. Insofar as the case of Mr. Ram Naresh Singh is
concerned, 524 towers are constructed in District Sasaram in the State
ofBihar and only one tower is placed on the land belonging to respondent
Nos. I and 2 therein. The High Court of Patna has decided the case in
                                                                                B
favour of respondent Nos. I and 2 on the ground that no notice was
issued to them to seek their prior consent. Likewise, in the case of Ajay
Munjal Memorial Trust, transmission lines laid down by the Power Grid
covered the area of 418 kms. One such tower is placed on the land
belonging to the said Trust. Here also, the challenge was made by the
appellant on the ground that their prior consent was not taken. However,        c
in this behalf, the High Court of Jharkhand has repelled the challenge.
      It is for this reason that Civil Appeal Nos. 8951 of2011 and 8342
of 2009 were also heard along with the main case and the counsel
appearing for the respective parties made their submissions, which have
also been taken into consideration.                                             D
      13. We first take up the case of the writ petitioner - Century
Textiles & Industries Ltd., i.e. Civil Appeal No. I 0953 of2016.
       In this case, as noticed earlier, the learned Single Judge while
dismissing the writ petition took into consideration certain admitted facts,
which were not disputed by the writ petitioner before the Division Bench        E
or in this Court. First important fact is that the transmission line from
Korba to Raipur with 400 KV had already been erected in the year
1999. Thus, this transmission line was in existence when the writ petitioner
was given the mining lease of the area in question. The said transmission
line is hardly at a distance of I 00 mts. from the proposed power line. As      F
per the provisions of Rule 83(2) of the Indian Electricity Rules, 1956, no
blasting operation can be carried out in the vicinity of300 mts. from the
existing power line. Effect of this was, insofar as proposed power line is
concerned, only 100 mts. strip ofleasehold land and only a short span of
two towers is going to be affected by erection of the new transmission
line. Other important factor to be taken note of is that out of 410 towers·     G
which were to be erected over an area of 149.43 kms., 408 towers had
already been erected by the Power Grid to complete the project in
question when the writ petition was filed by the writ petitioner. One
more significant fact is that the transmission line under construction runs.
                                                                                H
50             SUPREME COURT REPORTS                            [2016] 11 S.C.R.



A    parallel to the existing Ko Iba-Raipur transmission line which was erected
     in the year 1999. This imposes field limitation as well as technical
     limitations in making a change in the route alingment of Si pat-Raipur
     transmission line. It could also not be disputed that the transmission
     project is ofnational importance as it is going to benefit public at large,
     not only in the State of Chhattisgarh but various other States through
B
     which the aforesaid transmission line passes through. Project was at
     the verge of completion when the writ petition was decided by the learned
     Single Judge and. it has sirwe been completed.
             14. It is also of significance that the Division Bench has not differed
     with the aforesaid factual position, including the fact that the project in
c    question is in public interest and, therefore, allowed the completion of
     the project. Notwithstanding these findings of the High Court, both by
     the Single Judge as well as the Division Bench, argument of the writ
     petitioner is that the erection of two towers on the mining area leased
     out to the writ petitioner is going to render a large chunk ofminingarea
D    unusable. It is not only going to affect the supply oflimestone to the writ
     petitioner for the manufacture of cement, thereby causing financial loss
     to the writ petitioner, even the State Government would be suffering
     financially in the form of royalty. It is, thus, argued that such a loss is
     also of public nature not only in financial tem1s, but in making the valuable
     mineral available for production of cement, which is an essential
E    commodity. On this basis, it is argued that realignment of the two towers
     is a better option, which would sub-serve both the competing public
     interests, one projected by the writ petitioner and the other by the Power
     Grid, as cost of realignment of the overhead lines was barely ' 4.50
     crores as against the loss to the State Exchequer in the sum of' 120
F    crores and to the writ petitioner in the neighbourhood of' 690 crores
     and, therefore, action of the Power Grid is arbitrary, unjust and unfair as
     well. It is further submitted that there is violation of Sections 68 and 69
     of the Electricity Act, 2003 as well as Rules 3 and 10 of the Works of
     Licensees Rules, 2006 (hereinafter referred to as 'Rules, 2006') in laying
     down the overhead lines and, therefore, the High Court erred in law in
G    permitting the same.
            15. In order to appreciate the contentions of the writ petitioner, it
     is necessary to have a glimpse of the provisions of the Electricity Act,
     2003 as Well as Rules on which reliance has been placed by Mr.
     Shrivastava.
H
    THE POWER GRID CORPORATION OF INDIA LTD. v.                                   51
  CENTURY TEXTILES & INDUSTRIES LTD. [A. K. SIKRl, J.]

       16. Sections 68 and 69 of the Electricity Act, 2003 fall in Part Vlll       A
with the caption 'WORKS'. These two provisions directly deal with the
overhead lines. As per Section 68, an overhead line can be installed .or
kept installed above ground 'with prior approval of !he Appropriate
Government'. 'Appropriate Governmenl' is defined under Section 2(5)
of the Electricity Act, 2003 and it is not in dispute that in the instant case,
                                                                                   B
it would be the Central Government as it is the Central Government
which is the Appropriate Government in respect of a generating company
wholly or partly owned by it and Power Grid is a company which is
owned by the Central Government. The argument was that no such
prior approval from the Central Government was obtained in terms of
the aforesaid provision.                                                           c
      17. We find that this assertion is factually incorrect. The learned
Single Judge specifically noted that the Power Grid had obtained prior
approval of the Central Government under Section 68(1) of the Electricity
Act, 2003. Though, an attempt was made that this finding is incorrect,
we do not agree with the said submission of the writ petitioner as the             D
learned ASG pointed out to us the document containing such an approval.
       18. Another submission made was that permission of the writ
petitioner was not obtained which was needed as per Rule 3 of the
Rules, 2006. Rule 3(a) reads as under:
        "3. Licensee to carry out works. - (I) A licensee may -                    E

         (a) carry out works, lay down or place any electric supply line
         or other works in, through, or against, any building, or on, over or
         under any land whereon, whereover or whereunder any electric
         supply-line or works has not already been lawfully laid down or
         placed by such licensee, with the prior con.sent of the owner or          F
         occupier ofany building or land."
      19. ln the instant case, the aforesaid Rule is not applicable in view
of Section 164 of the Electricity Act, 2003, which reads as under:
         "164. Exercise of powers of Telegraph Authority in certain
                                                                                   G
         cases.-The Appropriate Government may, by order in writing,
         for the placing of electric lines or electrical plant for. the
         transmission of electricity or for the purpose of telephonic or
         telegraphic communications necessary for the proper co-
         ordination of works, confer upon any public officer, licensee or
         any other person engaged in the business of supplying electricity         H
52             SUPREME COURT REPORTS                           [2016] 11 S.C.R.



A            under this Act, subject to such conditions and restrictions, if any,
             as the Appropriate Government may think fit to impose and to
             the provisions of the Indian Telegraph Act, 1885 (13of1885),
             any of the powers which the telegraph authority possesses under
             that Act with respect to the placing of telegraph lines and posts
             for the purposes of a telegraph established or maintained, by the
8
             Government or to be so established or maintained."
            20. It is not in dispute that in exercise of powers under the
     aforesaid provision, the Appropriate Government has conferred the
     powers of Telegraph Authority vi de notification-dated December 24,
     2003 exercisable under Indian Telegraph Act, 1885 upon the Power Grid.
c    It may also be mentioned that a Central Transmission Utility (CTU) is a
     deemed licensee under the second proviso to Section 14 of the Electricity
     Act, 2003. Power Grid is a Central Transmission Utility and is, therefore,
     a deemed licensee under the Electricity Act, 2003. This coupled with
     the fact that Power Grid is treated as Authority under the Indian Telegraph
D    Act, 1885, it acquires all such powers which are vested in a Telegraph
     Authority under the provisions of the Indian Telegraph Act, 1885 including
     power to eliminate any obstruction in the laying down of power
     transmission lines. As per the provisions of the Indian Telegraph Act,
     1885, unobstructed access to lay down telegraph and/or electricity
     transmission lines is an imperative in the larger public interest.
E    Electrification of villages all over the country and availability of telegraph
     lines are the most essential requirements for growth and development of
     any country, economy and the well-being/progress of the citizens. The
     legislature has not permitted any kind of impediment/ obstruction in
     achieving this objective and through the scheme of the Indian Telegraph
F    Act, 1885 empowering the licensee to lay telegraph lines, applied the
     same, as it is, for laying down the electricity transmission lines. Powers
     of the Telegraph Authority conferred by Sections 10, 15 and 16 of the
     Indian Telegraph Act, 1885, stand vested in and are enjoyed by the Power
     Grid. These provisions are reproduced below:

G            "l 0. Power for telegraph authoritv to place and maintain telegraph
             lines and posts.-
             The telegraph authority may, from time to time, place and maintain
             a telegraph line under, over, along, or across, and posts in or
             upon, any immovable property:
             Provided that-
H
  THE POWER GRID CORPORATION OF INDIA LTD. v.                             53
CENTURY TEXTILES & INDUSTRIES LTD. [A. K. SIKRI, J.]

    (a) the telegraph authority shall not exercise the powers conferred    A
    by this section except for the purposes of a telegraph established
    or maintained by the Central Government, or to be so established
    or maintained;
    (b) the Central Government shall not acquire any right other
    than that of user only in the property under, over, along, across,     B
    in or upon which the telegraph authority places any telegraph
    line or post; and
    ( c) except as hereinafter provided, the telegraph authority shall
    not exercise those powers in respect of any property vested in
    or under the control or management of any local authority, without
    the permission of that authority; and
                                                                           c
    (d) in the exercise of the powers conferred by this section, the
    telegraph authority shall do as little damage as possible, and,
    when it has exercised those powers in respect of any property
    other than that referred to in clause (c), shall pay full
    compensation to all persons interested for any damage sustained        D
    by them by reason of the exercise of those powers."
             xx               xx                xx
    "15. Disputes between telegraph authoritv and local authority.-
    (!) If any dispute arises between the telegraph authority and a
    local authority in consequence of the local authority refusing the     E
    permission referred to in section 10, clause (c), or prescribing
    any condition under section 12, or in consequence of the telegraph
    authority omitting to comply with a requisition made under section
    13, or otherwise in respect of the exercise of the powers
    conferred by this Act, it shall be determined by such officer as       F
    the I [Central Government] may appoint either generally or
    specially in this behalf.
    (2) An appeal from the determination of the officer so appointed
    shall lie to the Central Government; and the order of the Central
    Government shall be final."
                                                                           G
    "16. Exercise of powers conferred by section I 0, and disputes
    as to compensation, in case of property other than that of a local
    authoritv.-
     ( 1) If the exercise of the powers mentioned in section I 0 in
     respect of property referred to in clause ( d) of that section is
                                                                           H
54            SUPREME COURT REPORTS                          [2016) 11 S.C.R.



A           resisted or obstructed, the District Magistrate may, in his
            discretion, order that the telegraph authority shall be permitted
            to exercise them.
            (2) If, after the making of an order under sub-section (I), any
            person resists the exercise of those powers, or, having control
B           over the property, does not give all facilities for their being
            exercised, he shall be deemed to have committed an offence
            under section 188 of the Indian Penal Code, 1860 (45 of 1860).
            (3) If any dispute arises concerning the sufficiency of the
            compensation to be paid under section 10, clause (d), it shall, on
c           application for that purpose by either of the disputing parties to
            the District Judge within whose jurisdiction the property is situate,
            be determined by him.
            (4) If any dispute arises as to the persons entitled to receive
            compensation, or as to the proportions in which the persons
D           interested are entitled to share in it, the telegraph authority may
            pay into the court of the District Judge such amount as he deems
            sufficient or, where all the disputing parties have in writing
            admitted the amount tendered to be sufficient or the amount has
            been determined under sub-section (3 ), that amount; and the
            District Judge, after giving notice to the parties and hearing such
E           of them as desire to be heard, shall determine the persons entitled
            to receive the compensation or, as the case may be, the
            proportions in which the persons interested are entitled to share
            in it.
            (5) Every determination ofa dispute by a District Judge under
F           sub-section (3), or sub-section (4) shall be final:
            Provided that nothing in this sub-section shall affect the right of
            any person to recover by suit the whole or any part of any
            compensation paid by the telegraph authority, from the person
            who has received the same ..."
G
            21. Section 10 of the Indian Telegraph Act, 1885 empowers the
     Telegraph Authority to place and maintain a telegraph line under, over,
     along or across and posts in or upon any immovable property. The
     provision of Section JO(b) of the Indian Telegraph Act, 1885 makes it
     abundantly clear that while acquiring the power to lay down telegraph
H    lines, the Central Government does not acquire any right other than that
   THE POWER GRID CORPORATION OF INDIA LTD. v.                                55
 CENTURY TEXTILES & INDUSTRIES LTD. [A. K. SIKRI, J.]

of user in the property. Further, Section IO(d) of the Indian Telegraph       A
Act, 1885 obliges the Telegraph Authority to ensure that it causes as
little damage as possible and that the Telegraph Authority shall also be
obliged to pay full compensation to all person interested for any damage
sustained by them by reason of the exercise of those powers.
       22. As Power Grid is given the powers of Telegraph Authority,           B
Rule 3(1) of the Rules, 2006 ceases to apply in the case of Power Grid
by virtue of execution clause contained in sub-rule (4) of Rule 3 which
reads as under:
       "3(4). - Nothing contained in this rule shall effect the powers
       conferred upon any licensee under Section 164 of the Act."              c
       23. We, thus, have no hesitation in rejecting the argument of the
writ petitioner that the impugned action of the Power Grid was contrary
to the provisions of the Electricity Act, 2003.
        24. We also do not find that the action of the Power Grid, in the
given circumstances, by not shifting the transmission lines was arbitrary.     D
From the facts noted above, it becomes apparent that not only it was
unfeasible to change the alignment as almost entire work had already
been completed by the time the writ petitioner started protesting against
this move, even otherwise, the Power Grid has given sufficient explanation
to point out that all relevant factors/ aspects were kept in mind while        E
laying down the impugned transmission lines. Such transmission lines
had to be in straight line to the extent possible for eliminating loss of
transmission. It is also explained that electricity transmission is usually
laid or crossed over agricultural land where minimum extent of land gets
utilised for erecting towers and where agricultural activities are not
prejudiced/obstructed in any manner. The purpose is to avoid buildings,        F
religious places, ponds etc. while laying down these transmission lines.
It is only when it becomes inevitable that towers are placed on the private
lines to the minimum and least extent possible. That is what was tried to
achieve in the instant case. Another important factor, which needs
repetition at this stage is that no blasting is permissible within 300 mts.    G
from the 400KV line (already existing) or the tower structure. Mining of
limestone can be taken up by adopting the methods other than use of
explosive/blasting - without damage to the tower foundation/tower
structure or the line, which can be accomplished by usingjack hammer/
pneumatic hammer with compressor so as to avoid any damage to the
line or tower. This aspect has also been taken note of by the learned          H
56             SUPREME COURT REPORTS                          r10161 11 S.C.R.


A    Single Judge of the High Court in the judgment dated March 11, 2008.
     The Division Bench did not differ with any of these findings.
            Accordingly, Civil Appeal No. 10953 of 2016 preferred by the
     writ petitioner stands dismissed.
            25. At this stage, we deal with the direction of the Division Bench
B    regarding compensation payable to the writ petitioner, or for that matter
     to the State Government. In the first instance, no such claim was laid by
     the writ petitioner in the writ petition or by the State Government before
     the High Court. Furthermore, the High Court could not have given this
     task to the District Collector, which is contrary to the provisions of Section
c    16(c) of the Indian Telegraph Act, 1885 which are extended to laying
     down of electricity lines. As per this provision, such an authority vests ·
     with the District Judge.
             26. These are sufficient reasons to allow Civil Appeal No. I 0951
     of 2016 preferred by the Power Grid by setting aside those directions.
D    Ordered accordingly. We make it clear that ifthe writ petitioner feels
     that it is entitled to any compensation, the appropriate course of action is
     to file a suit before the concerned District Judge for this purpose. It
     would also be apt to point out at this stage that the Central Government
     has framed guidelines dated October 15, 2015 in this behalf which inter
     alia provide that the issue of compensation may be resolved having
E    regard to the mode and manner of assessment of compensation as per
     the said guidelines. Therefore, it would always be open to the writ
     petitioner to avail the remedy as per the said guidelines.
            27. CIVIL APPEAL NO. 8951 OF 2011
            This appeal is filed by Power Grid in the case of Ram Naresh
F
     Singh. In this case, transmission lines are i11 District Sasaram in the
     State of Bihar. The complete work for laying dow11 the transmission
     lines where 524 overhead towers have been erected by the Power Grid.
     Out of these, only I tower is located at the land belonging to Ram Naresh
     Singh. The dispute raised is with regard to quantum of compensation
G    and as per the provisions of Section 16 of the Indian Telegraph Act,
     1885, it is to be settled by the District Judge. Thus, for all the reasons
     giyen above in the case of Century Textiles & Industries Limited, this
     appeal of the Power Grid stands allowed and the judgment ofthe High
     CoCJrt is set aside.
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    THE POWER GRID CORPORATION OF INDIA LTD. v.                               57
  CENTURY TEXTILES & INDUSTRIES LTD. [A. K. SIKRI, J.]

       28. CIVIL APPEAL NO. 8342 OF 2009                                      A
       The appellant in this case also raised the issue of taking prior
consent from it, as the owner of the land, before laying electricity
transmission lines. This argument has been rejected by us while dealing
with the appeal of Century Textiles & Industries Limited. Accordingly,
this appeal is also dismissed.                                                 B
Divya Pandey                                           Appeals disposed of.