Full Judgment Text
REPORTABLE
2025 INSC 1004
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO(S).10882-10888 OF 2025
(Arising out of S.L.P.(C) No(s).14936-14942 of 2023)
KALPATARU POWER
TRANSMISSION LTD.
(NOW KNOWN AS KALPATARU
PROJECTS INTERNATIONAL
LTD.) … Appellant (s)
VERSUS
VINOD AND ORS. ETC. … Respondent(s)
WITH
CIVIL APPEAL NO(S).10889-10890 OF 2025
(Arising out of S.L.P.(C) No(s).14926-14927 of 2023)
JHAJJAR K.T. TRANSCO PVT. LTD. … Appellant (s)
VERSUS
RATI RAM AND ORS. … Respondent(s)
WITH
CIVIL APPEAL NO(S).10891-10892 OF 2025
(Arising out of S.L.P.(C) No(s).18246-18247 of 2025)
VINOD AND ORS. ETC. … Appellant (s)
VERSUS
KALPATARU POWER
TRANSMISSION LTD. AND ORS. ETC. … Respondent(s)
Signature Not Verified
Digitally signed by
ANITA MALHOTRA
Date: 2025.08.19
17:56:36 IST
Reason:
Page 1 of 36
J U D G M E N T
Rajesh Bindal, J.
Table of Contents
| S.<br>No. | Particulars | Paras | Page |
|---|---|---|---|
| 1. | Factual background | 2 – 7 | 2 – 7 |
| Civil Appeal No(s). 10882-10888 of<br>2025<br>[@SLP (C) No(s). 14936-<br>14942/2023] | 5 – 5.1 | 4 – 5 | |
| Civil Appeal No(s).10891-10892 of<br>2025<br>[@SLP (C) No(s).18246-18247 of<br>2025] | 6 – 6.1 | 6 | |
| Civil Appeal No(s). 10889-10890 of<br>2025<br>[@SLP (C) No(s). 14926-<br>14927/2023] | 7 – 7.1 | 6 – 7 | |
| 2. | Regarding ‘Impugned Order’ | 8 | 8 |
| 3. | Arguments of the contractor | 9 – 9.3 | 8 – 10 |
| 4. | Arguments of the landowners | 9.4 –<br>10 | 11 |
| 5. | Discussion | 11 – 20 | 11 –<br>20 |
| 6. | Re-right of appeal | 21 – 35 | 21 –<br>32 |
| 7. | Need for uniformity in nomenclature<br>of cases | 36 | 32 |
| 8. | Relief on merits | 37 –<br>37.1 | 32 –<br>33 |
| 9. | Directions | 38 – 39 | 33 |
1. Leave granted.
Page 2 of 36
FACTUAL BACKGROUND
2. The present judgment shall dispose of a batch of
appeals arising out of a common judgment dated 24.02.2023
1 2
passed by the High Court whereby a bunch of nine matters
were decided. The landowners before this Court are seeking
further enhancement of compensation on account of damages
suffered by erection of transmission lines and towers, whereas
the Contractor is before this Court, challenging the amount of
compensation awarded.
3. Briefly, basic facts of the case as are evident from
the record are that Haryana Vidyut Prasaran Nigam Limited
(hereinafter, “HVPNL”), a public company owned by the State
Government initiated a power transmission project, titled “400
KV Jhajjar Power Transmission System-PPP-1,” by issuing a
Request for Quotation (RFQ) on 13.01.2009. Jhajjar KT Transco
Private Limited (hereinafter, “JKTPL”) was selected as the lowest
bidder for the transmission project and was awarded the project
under an Agreement dated 28.05.2010. Subsequently, JKTPL
1 High Court of Punjab and Haryana at Chandigarh.
2 CWP No. 21878 of 2017; CWP No. 26406 of 2017; CR-3502-2017; CR-3503-2017; CR-
1280-2020; CR-2873-2021; CWP No. 9495 of 2017; CR-3830-2017; CWP No. 28570 of
2017.
Page 3 of 36
entered into a sub-contract for erection, commissioning & other
services with Kalpataru Power Transmission Ltd. on 29.10.2010,
the present appellant in some of the appeals.
3.1 As is evident from the aforesaid contract executed
between the JKTPL and Kalpataru Power Transmission Ltd., total
length of transmission line is 100 km. The details thereof are as
under:
Jharli (Jhajjar) - Kabulpur (Rohtak) 400 KV D/C line
(Length: 35 km).
Kabulpur (Rohtak) - Dipalpur (Sonepat) 400 KV D/C
line (Length: 64 km).
Loop-in-Loop-out (LILO) of one circuit of Abdallapur -
Bawana 400 KV D/C line at Dipalpur (Sonipat)
(Length: 1 km).
3.2 The transmission line has passed through 4 districts
in different villages as is mentioned in the public notice dated
3
12.07.2010. The districts are Bhiwani, Jhajjar, Rohtak and
Sonepat. The issue arose regarding compensation to which the
landowners may be entitled to for the damages suffered on
account of erection of towers and drawing the power lines. The
fact remains that ownership of land is not transferred.
3 Available in the record of the Trial Court in CS No. 6 of 2017 at page 267.
Page 4 of 36
4. As there are certain glaring errors in the judgment of
the High Court deciding bunch of petitions pertaining to land
falling in different districts, to put the record straight we wish to
narrate brief facts of all the appeals.
Civil Appeal No(s).10882-10888 of 2025 (@SLP (C) No(s).
14936-14942/2023)
5. These appeals arise out of common judgment of the
High Court wherein challenge was made to different judgments
and decrees passed by the Ld. Additional District Judge,
Sonepat in 3 different applications filed by landowners under
4
Section 16(3) of the Indian Telegraph Act, 1885. These three
applications were registered as Civil Suits bearing CIS No.
CS/5/2016, titled as “Tara Chand and Ors. versus Kalpa-Taru
and Ors.”, CIS No. CS/6/2016 titled as “Vinod and Another
versus Kalpa-Taru and Ors.” and CIS No. CS/7/2016 titled as
“Pramod Kumar etc. versus Ministry of Power etc.” . The Ld.
Additional District Judge, Sonepat awarded compensation @
85% of collector rate i.e., ₹ 85,00,000/- per acre along with
interest @ 8%, for the tower base area (land beneath the four
legs of the tower).
4 Hereinafter referred to as “the 1885 Act”.
Page 5 of 36
5.1 Both the parties being aggrieved by the judgment
and decree of the Trial Court, challenged the same before the
High Court. Two Civil Writ Petitions were filed by the landowners
under Article 226 of the Constitution of India (CWP-9495-2017
and CWP-21878-2017) seeking enhancement of compensation.
Whereas the contractor filed three Civil Revision Petitions under
Article 227 of the Constitution of India (CR-3502-2017, CR-
3503-2017 and CR-3830-2017). Two Civil Writ Petitions (CWP-
26406-2017 and CWP-28570-2017) were filed by HVPNL,
Panipat challenging the quantum of compensation awarded .
Civil Appeal No(s). 10891-10892 of 2025 ( SLP (C)
No.18246-18247 of 2025)
6. The aforesaid appeals have been filed against the
judgment of the High Court in CWP-21878-2017 and CWP-9495-
2017 and the same judgment is under challenged in Civil
Appeals arising out of S.L.P.(C) No.14936/2023 and 14940/2023
(@ S.L.P.(C) Nos.14936-14942 of 2023) seeking further
enhancement of the compensation awarded. The land pertains
to the District Sonepat.
Page 6 of 36
6.1 Since the parties in the aforesaid appeals are
common and are being represented, we do not consider it
appropriate to issue formal notice in these appeals and the
same are being disposed of along with the bunch of appeals.
Civil Appeal No(s).10889-10890 of 2025 (@ SLP (C) No.
14926-14927/2023)
7. Challenge in present appeals is also to the same
common judgment of the High Court dated 24.02.2023. Land
involved forms part of district Jhajjar. Before the High Court, two
Civil Revision Petitions bearing CR-1280-2020 and CR-2873-
2021 were filed by the contractor and the landowner,
respectively. The issue again pertained to assessment of fair
compensation on account of utilization of land owned by the
landowners for erection of tower or drawing power lines. An
application was filed by the landowner under Section 16(3) of
the 1885 Act bearing CM No. 516 of 2013 titled “Rati Ram
versus State of Haryana and Ors.” before the Additional District
Judge, Jhajjar. The Trial Court initially vide order dated
07.11.2016 awarded total compensation of ₹ 30,00,000/- under
various heads. The aforesaid order was challenged by the
contractor before the High Court by filing CR No. 3420 of 2017.
Page 7 of 36
The High Court vide order dated 19.08.2019 set aside the order
of the Trial Court and remanded the case back for
determination of compensation afresh. On remand, the Trial
Court vide order dated 20.12.2019 assessed the total
compensation at ₹ 26,12,000/- to be paid along with interest @
18% per annum from April 2011 till realization. The
compensation was awarded under various heads.
7.1 The order passed by the Trial Court in CM No. 516 of
2013 seems to be erroneous on the face of it. In paragraph 6 of
the order, documentary evidence led by the landowners has
been referred to. There are five exhibits and three documents
which have been marked. In paragraph 18 of the order passed
by the Trial Court, reference has been made to Exhibits P-5 to P-
8 as sale deeds, which are not mentioned in paragraph 6 as
such. Further Exhibit P-5 is stated to be an attested copy of the
Notice dated 07.12.2011 of HVPNL. Further, the manner in
which the compensation has been assessed cannot be made
out. The High Court has failed to notice this aspect of the
matter.
Page 8 of 36
REGARDING IMPUGNED ORDER
8. Aggrieved by the aforesaid judgments/orders of the
Trial Court, at Sonepat and Jhajjar both parties filed petitions
before the High Court. While deciding the bunch of petitions,
the High Court noticed the facts pertaining to land in district
Sonepat only and assessed the compensation in all cases. The
facts pertaining to district Jhajjar were not even touched. May
be counsels did not argue. A uniform compensation @ 85% of
the collector rate beneath the tower area, which was
determined at ₹ 1.50 crores per acre was awarded to the
landowners. Besides this, for diminishing the value of land
across the width of Right of Way (ROW), 15% of the value of
land was awarded as compensation. It was on account of
imposition of restrictions on utilization thereof.
ARGUMENTS OF THE CONTRACTOR
9. Mr. Nidhesh Gupta, learned senior counsel appearing
for the Contractor challenged the judgment of the High Court,
whereby the damages payable to the landowners were further
enhanced. He submitted that there was no basis for
assessment of huge compensation on account of use of the
Page 9 of 36
land for erection of towers and drawing of the power lines. The
area beneath the transmission lines could be utilized by the
landowners, however, subject to certain restrictions. The
ownership of the land is not transferred. Section 10 of the 1885
Act authorizes the authority concerned to erect towers and
draw power lines, for which only right to use is acquired,
warranting compensation to that extent only. The assessment
of compensation by the Additional District Judge, Sonepat,
which was further enhanced by the High Court, was totally on
erroneous grounds and without any basis. Some studies related
to effects of electromagnetic waves on the yield of crops, which
may be available on internet, have been relied upon by the
Additional District Judge, Sonepat, which in fact, have no basis
and was not even confronted to any of the parties, before the
same were relied upon. It was not even the case of the
landowners as the same was not part of the evidence led.
9.1 It was further argued that the towers were erected
and the power lines were drawn, running into about 100 kms
falling in Jhajjar, Sonipat and other districts. In the case in hand,
the value of land was equivalized for the stretch of the land
passing under the transmission lines falling in different districts,
Page 10 of 36
regardless of the fact whether the towers and lines were
situated close to some National Highway or State Highways or
running through agricultural areas having no road connectivity
as such. Thus, the assessment of compensation at uniform rate
for the entire land cannot be legally justified.
9.2 Reliance on the guidelines issued by the Ministry of
Power, Government of India bearing No.3/7/2015-Trans (“MOP
Guidelines”) dated 15.10.2015 is totally misplaced in these
cases for the reason that these were issued much after the
transmission line in question had already been drawn and
further these were required to be adopted by the concerned
State/UTs. It is the case of State of Haryana, that the aforesaid
guidelines had not been adopted, hence, invocation of those
guidelines for the purpose of assessment of compensation was
totally uncalled for.
9.3 In support of the argument, reliance was placed upon
judgments of this Court in Janardhan Reddy and others vs.
5
State, The Kerala State Electricity Board, Trivandrum vs. T.P.
5 AIR 1951 SC 124 : 1950 INSC 37.
Page 11 of 36
6
Kunhaliumma and Suhas H. Pophale vs. Oriental Insurance
7
Company Limited and Its Estate Officer.
ARGUMENTS OF THE LANDOWNERS
9.4 On the other hand, learned counsel for the
landowners submitted that there is no error in the assessment
of compensation by the High Court on account of damages
suffered by them. Hence, the appeals filed by the contractor
deserve to be dismissed. As far as the appeals filed by the
landowners are concerned, the compensation awarded by the
High Court, deserves to be enhanced further. For the land
beneath the legs of the towers, the landowners are entitled to
100% compensation and not @ 85% of the value of the land
since such area is rendered completely non-utilizable. Further,
even for the land areas falling under the overhead power lines
(Right of Way Corridor), lot of restrictions are imposed on the
use of land, hence, compensation on that account also
deserves to be enhanced.
10. Heard learned counsel for the parties and perused the
relevant records.
6 AIR 1977 SC 282 : 1976 INSC 272.
7 AIR 2014 SC 1509 : 2014 INSC 92.
Page 12 of 36
DISCUSSION
11. The facts of the cases in brief have already been
referred to in paragraph 3 to 7 of the judgment, hence, are not
being repeated. The land was acquired for execution of the
project titled, “400 KV Jhajjar Power Transmission System-PPP-
1”. Transmission line has the total length of 100 km passing
through four districts, namely, Jhajjar, Rohtak, Bhiwani and
Sonepat. We have matters before this Court pertaining to
portions of the land utilized for the project which fall in districts
Sonepat and Jhajjar. The first error committed by the High
Court, which is apparent on the face of it is that cases
pertaining to areas falling in two different districts have been
decided by a common judgment while referring to the material
with reference to district Sonepat only.
12. Another error committed by the High Court in the
impugned judgment is that the matter was dealt with as if it
was a writ petition filed on the original side dealing with an
issue raised for the first time. Rather, challenge before the High
Court in the writ petition filed under Article 226 and some
petitions filed under Article 227 was to the judgments of the
Trial Court, which were delivered on appreciation of evidence.
Page 13 of 36
The High Court, merely on the basis of pleadings in the High
Court stating that the same has not been denied, has recorded
findings.
13. A perusal of the impugned judgment reveals that the
High Court solely and heavily relied on the findings of the Trial
Court in the case of district Sonepat. The High Court while
quoting paragraph 23 of the Trial Court's judgment in Sonepat
matter, observed that the contractor had installed towers and
high-tension wires on the landowners’ land but had not paid
any compensation for the land covered under the poles of the
towers or for the diminution of value of such land, although
some compensation was paid for damage to the crops at the
time of erection. The Trial Court had opined that this action of
erecting towers and high-tension wires without paying
compensation for the land covered or its diminished value was
in violation of Articles 21, 39A, and 41 of the Constitution of
India.
14. The High Court noticed the location of the land, to be
part of the National Capital Region and is stated to be situated
merely 6 acres/killas from the G.T. Road, in an area where land
prices had already doubled. While holding that this was not a
Page 14 of 36
case of land acquisition stricto senso , but merely the right of
way is taken, the High Court proceeded to examine the fair
amount of compensation to which the landowners were entitled
to. The Court relied on the guidelines issued by the Ministry of
Power, Government of India on 15.10.2015. As far as the
consent of the State was concerned, it was deemed to have
been given since the State had not objected against the
guidelines or submitted any representative comments against
the same when these were circulated by the Ministry of Power
to all the States/UTs.
15. We are not approving the manner adopted by the
High Court for assessment of compensation. The fact remains
that the compensation has been calculated on the basis of
collector’s rate, which will be a matter of evidence pertaining to
each area where the land is situated. The collector rate which
has been referred to in the impugned judgment passed by the
High Court pertained to only district Sonepat. Apparently, there
was no evidence on record produced by the landowners to that
extent. As is evident from the impugned order passed by the
High Court, three sale deeds, Exhibits P-9, P-11 and P-12 were
produced by the landowners pertaining to district Sonepat.
Page 15 of 36
These however, pertained to village Livaspur and Rathdhana
and not to village Rai to which the land belonged to. The High
Court considered the matter as if it was dealing with the same
on original side as a writ petition. While observing that the
allegations made by the landowners in the writ petitions had
not been denied, the High Court relied upon the collector’s rate
as pleaded by the landowners. Finally, rejecting the valuation
shown in various sale deeds produced by the landowners, the
High Court referred to the collector's rate fixed for village Rai at
₹ 1.50 crores per acre and awarded compensation @ 85%
thereof for the Tower Base Area and compensation @15%
towards diminution of land value in the width of ROW Corridor.
The aforementioned compensation was ordered to carry
interest @ 8% per annum. Although the Collector's award was
not part of the formal evidence, the Court relied upon it, noting
that the pleading to that effect had not been denied by the
contractors.
16. No doubt, the landowners whose land is utilized for
right of way by the contractor for drawing the high-tension lines
and for erection of towers are entitled to be compensated
adequately, but how that compensation is to be assessed is the
Page 16 of 36
moot question, which the Trial Court as well as the High Court
have failed to appreciate. The basic issue which lost sight of
was that it was not a chunk of land located at one place for
which compensation could be assessed by considering the
value of the land in the vicinity. It was a belt of land running
into 100 kms. While referring to the facts of one case that the
suit land forms part of the National Capital Region and is
located at a distance of 6 acres/killas from G.T. Road,
compensation for the land question, which is located in two
different districts, was assessed at the same rate. However, this
locational advantage cannot be uniformly applied to the entire
transmission corridor, as the transmission line is running
through 100 kms in different districts and villages with vastly
different characteristics. Some portion of land may be close to a
National Highway or State Highway or some other roads; some
may be close to Abadi, whereas some portion of land may be
falling within rural areas where the land is used only for
agricultural purpose and with no connectivity by roads as such.
Applying a uniform rate for the entire transmission corridor
would not be a proper methodology for assessing fair
compensation to which the landowners are entitled to. Nothing
Page 17 of 36
was pointed out at the time of hearing regarding status of any
other petition filed by the landowners at any other place
seeking compensation. In the absence thereof we are unable
to examine as to what method was adopted therein.
16.1 A somewhat similar issue came before the High Court
8
in State of Haryana and Another vs. Pala Ram and Others. That
case concerned acquisition of land for the construction of BML
Hansi Butana Multipurpose Link Channel, however, the
principles laid down therein may be relevant to the present
matter. In that case, the entire channel length was 108 km,
with land forming part of 52 villages across four districts. The
High Court laid down the methodology for assessing
compensation in such cases. It may be relevant for the reason
that correct method is to firstly assess the value of land and
thereafter determine the compensation payable to the
landowners.
| This Court observed in the case of | Kerala SEB v. |
|---|
| Livisha | , |
|---|
to determine compensation in cases of telegraph lines and
electrical lines, certain factors should be looked into. The
8 2012 SCC Online P&H 24551.
9 (2007) 6 SCC 792 : 2007 INSC 638.
Page 18 of 36
observations of the court in the aforesaid case are extracted
hereinbelow:
| “7. We may, however, notice that in one of the<br>impugned judgments, a learned Single Judge of the<br>High Court held: | |
|---|---|
| “The court below has fixed the land value<br>at Rs 20,000 per cent and the rate of<br>diminution at 40%. Taking Exhibits A-1 and<br>A-2 produced, the lower court is correct in<br>fixing the land value at Rs 20,000 per cent,<br>(sic which) cannot be the reasonable land<br>value in this case. Hence I fix the land<br>value in this case at Rs 30,000 per cent. So<br>also the rate of diminution in land value is<br>fixed at 50% instead of 40% fixed by the<br>court below. The order passed by the court<br>below is modified accordingly.” | |
| No reason has been assigned in support of the<br>above view. The materials placed on record were not<br>analysed. Why such a view was taken also does not<br>appear from the records of the case. The amount of<br>compensation is required to be determined keeping<br>in view the purpose and object of the statute. There<br>cannot be any fixed formula therefor or the other. | |
| Although undoubtedly one formula laid down may | |
| assist the Board and/or the Reference Court to apply | |
| the same, but there cannot be a hard-and-fast rule in |
Page 19 of 36
this behalf. A fixed formula for determining the
amount of compensation although may make the
task of the Land Acquisition Officer or the Reference
Court easier but in our opinion each case is required
to be taken on its own merit. We may hasten to add
that the purpose and object of the Act and the
methodology laid down therein for the purpose
thereof should be the guiding factor.
(emphasis supplied)
x x x
9. Both telegraph lines and electrical lines are
required to be drawn over the agricultural lands
and/or other properties belonging to third parties. In
drawing such lines, the entire land cannot be acquired
but the effect thereof would be diminution of value of
the property over which such line is drawn.
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
Page 20 of 36
the property for the purpose for which the same was
meant to be used.”
18. Certain other arguments have also been noticed by
the High Court regarding adoption of MOP Guidelines dated
15.10.2015 regarding assessment of compensation for the
Tower Base Area (land beneath four legs of the tower) and the
ROW Corridor. In the case in hand, sole reliance of the
landowners is on the MOP Guidelines dated 15.10.2015. The
question arises as to whether these guidelines are applicable,
even assuming the deemed consent was there, as opined by
the High Court. The notification in the present case was
published on 12.07.2010. Even the notice regarding erection of
towers and drawing of power lines was issued to the
landowners on 27.12.2011 and they had filed petition under
Section 16(3) of the 1885 Act before the District Judge on
06.04.2012. Meaning thereby, everything happened much
before the aforesaid guidelines were issued. Paragraph 4 of the
guidelines clearly provides that States and Union Territories
were requested to take suitable decisions regarding adoption of
the guidelines, considering that acquisition of land is a State
Page 21 of 36
subject. According to these guidelines, compensation for the
area beneath the four legs of a tower is fixed at 85% of the
circle rate to be determined by the District Magistrate or any
other competent authority. For the Right of Way (ROW) corridor
falling under the transmission lines, the maximum
compensation provided is 15% of the land value. The use of the
word “maximum” is of relevance. Further, whether
administrative instructions could control the judicial power of
the Court ? The question needs to be addressed.
19. The High Court failed to appreciate the fundamental
fact that land pertaining to different villages falling in different
districts, which may be the subject matter of consideration for
assessment of compensation, would have been assessed
differently by the Collector based on their respective locations
and characteristics. Even in the case in hand, facts only
pertaining to district Sonepat have been discussed. From Page
24 of the impugned judgment, it is evident that the land
involved even in those cases, is located at different places,
some close to Highway, whereas some at a distance.
20. For the reasons mentioned above, in our view, the
order passed by the High Court cannot be legally sustained,
Page 22 of 36
hence, the same is set aside and the matters are remitted back
to the High Court for fresh consideration in accordance with
law.
Re-RIGHT OF APPEAL
21. During the course of arguments before this Court,
learned counsel for the parties referred to various factual
matrix, pointing out errors not only in the judgment of the Trial
Court but also of the High Court. It was also submitted that the
factual aspects and the evidence led by the parties was not
properly appreciated by the High Court. When the matter was
examined, this Court also noticed these facts and found it
appropriate to give opportunity to the counsel for the appellant
to assist the court on the issue as to whether there should be
some remedy of appeal against order passed by the District
Judge, so that the facts of the case could be examined in detail.
The appellants have submitted a note.
22. The case in hand pertains to erection of towers and
drawing the power lines, for which right of way was taken.
There being no independent provision available for the same in
Page 23 of 36
the Electricity Act, 2003, the provisions of the 1885 Act have
been adopted in terms of Section 164 of the 2003 Act.
23. Section 10 of the 1885 Act confers powers on the
Telegraph Authority to place and maintain the telegraph lines
and posts. Proviso (b) to the aforesaid section provides that the
Central Government shall not acquire any right other than the
right of user in the property upon which the authority places
any telegraph line or post. Clause (d) of the proviso provides
for payment of compensation. Relevant part of Section 10 of
the 1885 Act is extracted below:
“10. Power for telegraph authority 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—
(a) x x x
(b) the Central Government shall not acquire
any right other than that of user only in the property
under, over, along, across, in or upon which the
telegraph authority places any telegraph line or post;
(c) x x x
Page 24 of 36
(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 by them by reason of the exercise
of those powers.”
23.1 Section 16 of the 1885 Act deals with assessment
and payment of compensation. Relevant portion of the
aforesaid section is extracted below:
“16. Exercise of powers conferred by
section 10, and disputes as to compensation, in case
of property other than that of a local authority.—
(1) & (2) x x x
(3) If any dispute arises concerning the
sufficiency of the compensation to be paid under
section 10, clause (d), it shall, on 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 interested arc
entitled to share in it, the telegraph authority may
Page 25 of 36
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 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 of a dispute by a
District Judge under 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.”
23.2 On a perusal of Section 16(3) of the 1885 Act, it is
evident that in case of dispute regarding sufficiency of
compensation, application can be filed before the District
Judge, within whose jurisdiction the property is situated.
However, the 1885 Act does not provide any timeline within
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which such an application can be filed, nor does it specify the
starting point of limitation for the purpose.
23.3 Similarly, Section 16(4) of the aforementioned Act
provides for resolution of disputes inter se the parties with
reference to their entitlement to compensation. In such
situation, the authority is required to deposit the amount of
compensation with the District Judge, who will finally determine
the rights of the parties.
23.4 Section 16(5) provides that any order passed by the
District Judge under sub-sections (3) or (4) shall be final,
thereby precluding any appeal. The same cannot be challenged
before Civil Court. Only extraordinary jurisdiction of the High
Court can be invoked, wherein normally the findings of facts are
not disturbed, and evidence is not reappreciated. The High
Court proceeds only on undisputed facts under its power of
judicial review.
24. Section 7-B of the 1885 Act talks of arbitration of
disputes and sub-section (2) provides that the award of the
arbitrator appointed under sub-section (1) thereof shall be
conclusive between the parties to the dispute and shall not be
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questioned in any court. Meaning thereby, there is finality
attached to the same. While dealing with the scope of
challenge to an award passed under section 7-B of the 1885
Act, to which finality has been attached, this Court in M.L. Jaggi
10
Versus Mahanagar Telephones Nigam Ltd. and Ors., opined
that in such circumstances, the only available remedy to a
party aggrieved by such an award is to seek judicial review by
way of writ petition. The High Court will not sit in appeal over
the award but will only examine its correctness and legality
within the limited confines of judicial review.
25. To complete the narration with reference to the
scheme of the 1885 Act, we may add that Section 15 of the
aforesaid Act provides for resolution of disputes between the
telegraph authority and a local authority. An appeal from such
resolution by a designated officer, has been provided to the
Central Government.
26. As evident from the facts of the case and is a matter
of common knowledge, assessment of fair value of land
requires evidence to be led by both parties. Based on such
evidence, value of land is determined. This factor is equally
10 (1996) 3 SCC 119: 1996 INSC 6
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relevant for assessing compensation for the land coming
beneath four legs of the towers or under the power lines as
ROW is taken. If crops are standing on the land, for assessment
of value thereof, or the quantum of damages suffered, evidence
will be required. Even if the MOP guidelines issued by the
Ministry of Power, Government of India are to be considered,
there may still be issues regarding the rates fixed by the
Collector for a particular area. This can also be subject matter
of dispute. Furthermore, for determining the rights of various
parties to receive compensation in case there is inter se
dispute, certain amount of evidence would be required.
27. In the present case as well, some parties invoked
Article 226 of the Constitution, whereas others filed petitions
invoking Article 227 of the Constitution. This is solely because
no proper appellate remedy has been provided. The only scope
of interference in exercise of extra-ordinary jurisdiction of the
High Court would be within the parameters of judicial review.
28. If we examine the scope of first appeal under any
statute, entire case is open for re-hearing, both on questions of
facts and on law. The First Appellate Court is required to
address all the issues considered in the order impugned and
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decide the same by giving reasons. It is in fact continuation of
the original proceedings. The power of the First Appellate Court
is co-extensive with that of the trial court, unless the scope
thereof is limited by the statute which provides for the
appellate jurisdiction.
29. As is evident from the provisions of the 1885 Act,
there is no amendment in Sections 10 and 16, ever since the
same was enacted. It may be noted that when the 1885 Act
was enacted, there was limited development and there may
have been few cases requiring determination of compensation
under the aforementioned Act. The value of the land was also in
peanuts. However, with the rapid pace of development in the
electrical and power sector, the volume of litigation has
increased significantly, necessitating assessment of
compensation under the 1885 Act.
30. Besides there being no appellate remedy, we find
that there are other gaps as well in the statutory scheme.
30.1 A reading of the provisions of Sections 10 and 16 of
1885 Act reveals that in addition to no remedy of appeal being
provided against the order passed by the District Judge, no
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timelines have been provided regarding payment of
compensation to the affected parties after the right under
Section 10(d) is exercised by the competent authority; the time
during which any party can raise grievance about sufficiency of
compensation so assessed. The provisions are also silent about
the time during which a landowner can file an application
before the District Judge in case sufficiency of compensation is
disputed. The Act also does not provide the rate at which
interest is to be paid to the landowners in case there is any
delay in payment of compensation. This being an Act of
Parliament, its application has to be uniform throughout the
country. In the absence of defined parameters, it will depend on
different courts, how they interpret the provisions.
31. In the case in hand, certain rights were taken by the
authority concerned for the erection of electric towers and
drawing the power lines and not the ownership of the land.
There are many different statutes under which the ownership of
the land is acquired by the competent authority in exercise of
powers conferred under those statutes. Wherever such a power
is exercised, the natural corollary is, the landowner is to be
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adequately compensated. Detailed procedure and timelines for
different actions have been provided under those statutes.
31.1 If we consider the provisions of erstwhile Land
Acquisition Act, 1894, procedure as well as timelines had been
provided for various actions to be taken in case there is
acquisition of land, even remedy of appeal against the award of
the District Judge/Additional District Judge had also been
provided. Rate of interest was also prescribed.
31.2 Similar is the position under the Right to Fair
Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013. Detailed procedures
have been provided in case any party is not satisfied with the
compensation awarded. Matter can be referred to the Authority
as established under Section 51 of the aforesaid Act. Against an
order passed by the Authority, an appeal is provided to the
High Court. The rate of interest on account of delay in payment
of compensation has also been prescribed.
31.3 Further, in the Requisitioning and Acquisition of
Immovable Property Act, 1952, the adequacy of compensation
is assessed through the process of arbitration. Though
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11
provisions of the Arbitration and Conciliation Act, 1996 have
not been made applicable, remedy of appeal to the High Court
has been provided.
31.4 Under the National Highways Act, 1956, the dispute
regarding adequacy of compensation is referred to arbitration
and the provisions of the 1996 Act have been made applicable,
hence, the remedies available thereunder could be availed of.
31.5 Similar provisions are present in the Railways Act,
1989. Reference can also be made to the provisions of Coal
Bearing Areas (Acquisition and Development) Act, 1957.
32. It is noticed that under the Petroleum and Minerals
12
Pipelines (Acquisition of Right of User in Land) Act, 1962 , the
provisions are similar to the case in hand. In fact, Section 10 of
the aforesaid Act is pari-materia to Section 16 of the 1885 Act.
District Judge of the concerned district is the competent Court,
whose jurisdiction can be invoked to challenge the sufficiency
of compensation. As per Section 10(6) of the aforesaid Act,
order of the District Judge is final.
11 Hereinafter, “1996 Act”
12 Hereinafter referred to as “the Petroleum Act”.
Page 33 of 36
33. Needless to add here that, in the process of
determination of compensation, evidence will have to be led
by the parties. Unless statutory remedy of appeal is provided
where all issues of law and facts can be re-examined, any other
remedy may be illusionary. As is noticed in the facts of the
present case, the remedies availed by different parties were
different. In some of the cases, writ petitions were filed by the
landowners under Article 226 of the Constitution of India,
impugning the judgment and decree of the civil court and in
some of the cases, the contractor as well as the landowners
filed petitions under Article 227 of the Constitution of India.
Reappreciation of evidence in those proceedings may be an
issue. Remedy may not be effective and can become illusionary.
34. Not only this, but the anomalies as have been
referred to in the paragraph 30 with reference to various
timelines as well, the matter needs to be examined.
35. In the aforesaid background, we are of the opinion
that these issues need to be examined by the Law Commission
of India and the Ministry of Law and Justice, Government of
India, so as to determine whether a statutory remedy of appeal
should be provided against judgments/orders passed under
Page 34 of 36
Sections 16(3) and 16(4) of the 1885 Act, the Petroleum Act or
any other similar statute.
NEED FOR UNIFORMITY IN NOMENCLATURE OF CASES
36. Section 16(3) of 1885 Act, provides that an
application can be filed before the District Judge in case of a
dispute related to compensation. In district Sonepat, such an
application was registered and numbered as a Civil Suit where
a judgment and decree has been passed. Whereas in district
Jhajjar, the same was registered as a Civil Miscellaneous
Application and only judgment has been passed. There is need
to bring uniformity in the nomenclature to be assigned to these
kinds of proceedings, which may come to the court under the
1885 Act and also the proceedings under the Petroleum and
Minerals Pipelines (Acquisition of Right of User in Land) Act,
1962.
RELIEF ON MERITS
37. For the reasons mentioned above, in our view, the
order passed by the High Court cannot be legally sustained,
hence, the same is set aside and the matters are remitted back
to the High Court for fresh consideration in accordance with
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law. The civil appeals are accordingly disposed of. Keeping in
view the issues involved, we request the High Court to make an
effort to take up the matters expeditiously.
37.1 Pending application(s), if any, are accordingly
disposed of.
DIRECTIONS
38. A copy of this order be sent to the Registrar General
of the High Court of Punjab and Haryana for placing the same
before Hon’ble Chief Justice for taking the appropriate steps in
terms of observations made in paragraph 36 above.
39. The Registry of this Court shall forthwith send a copy
of this order to the Secretary, Legislative Department, Ministry
of Law and Justice, Government of India to examine the issue
and take appropriate steps.
……………….…………..J.
(M.M. SUNDRESH)
…………….……………..J.
(RAJESH BINDAL)
New Delhi
August 19, 2025.
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