Court is Not Bound by Government Guidelines in Assessing Damage and Fixing Compensation: Kerala High Court Upholds Enhanced Compensation for Land Devaluation Under High Voltage Lines

In a significant ruling, the Kerala High Court dismissed the civil revision petitions filed against the enhanced compensation for land devaluation due to the installation of 400 KV electric lines by Power Grid Corporation of India. Justice V.G. Arun, presiding over the case, emphasized that the court is not restricted by government-set guidelines when assessing damages and determining fair compensation.

The case arose from disputes concerning compensation for land value diminution and tree loss due to high voltage electric lines installed by Power Grid Corporation across the property of M.P. Balakrishnan, the revision petitioner. The petitioner challenged the initial compensation awarded, claiming it was insufficient given the significant impact on the land’s utility and value.

Compensation for Trees: The court agreed with the lower court’s decision, rejecting the claim for enhanced compensation for tree loss due to a lack of sufficient evidence to support the claimant’s assertions.

Land Devaluation Compensation: On the more contested issue of land value diminution, the court noted the lower court’s meticulous consideration of various factors such as the property’s location, proximity to infrastructure, and the extent to which the high voltage lines affected the land. The lower court had judiciously assessed the compensation, basing it on a comparative analysis with similar properties impacted by such infrastructure.

Judicial Discretion on Compensation: Justice Arun reiterated that the judiciary has the discretion to adjust compensation based on the actual damage and characteristics of the land. He pointed out that, “while assessing the damage sustained and fixing the compensation, the court is not bound by the guidelines/orders issued by the Government.”

Interest on Compensation: The court upheld the decision to award 9% interest on the compensation, aligning with legal precedents that support such interest provisions as just and equitable in cases of delayed compensation payments.

Decision: The High Court confirmed the lower court’s enhanced compensation figures, dismissing both the petitioner’s and the corporation’s revision petitions. The court ordered the adjusted compensation amount to be paid within three months, reinforcing the right to fair compensation for landowners affected by public utility projects.

Date of Decision: April 25, 2024

M.P. Balakrishnan vs. Power Grid Corporation of India et al.