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Civil Property & InheritanceSupreme Court of India

Kalpataru Power Transmission Ltd. v. Vinod

Civil Appeal · 2025 INSC 1004Decided 19 Aug 2025
Civil Appeal No(s). 10882-10888 of 2025 (arising out of S.L.P.(C) No(s).14936-14942 of 2023), heard along with Civil Appeal Nos. 10889-10890 of 2025 and 10891-10892 of 2025
Justice Rajesh Bindal · Justice M.M. Sundresh

Background

A batch of appeals arose from a single Punjab & Haryana High Court judgment that decided nine separate cases about compensation owed to landowners in Haryana whose land was used (not acquired) to erect towers and string 400 KV power transmission lines under a project run by Haryana Vidyut Prasaran Nigam Ltd., with Jhajjar KT Transco and Kalpataru Power Transmission as the contractors. Landowners in Sonepat and Jhajjar districts sought higher compensation for land under and around the towers, while the contractor challenged the compensation the courts below had already awarded. The High Court, deciding all nine cases together, mistakenly applied facts and land rates relevant only to Sonepat district even to cases from Jhajjar district, and set a uniform compensation rate across a 100-km transmission corridor spanning four districts with very different land values.

Decision Breakdown

The Supreme Court found the High Court's approach legally unsustainable because it applied a single uniform compensation rate (85% of collector rate for land under towers, 15% for the surrounding right-of-way corridor) across land in different districts with different values, near highways versus in purely rural, unconnected areas, without proper evidence for each location. It set aside the High Court's judgment and sent all the matters back for fresh decision applying correct, location-specific evidence. Separately, the Court flagged a serious gap in the law: the 1885 Telegraph Act (and similarly the Petroleum Pipelines Act) gives no right of appeal against a District Judge's compensation order, and has no prescribed timelines or interest rates: unlike modern land acquisition laws. It directed that this gap be examined by the Law Commission of India and the Union Law Ministry to consider introducing a statutory appeal.

Lesson Learnt

When land along a long linear project (like power lines) crosses multiple districts, compensation cannot be fixed at one uniform rate for the entire stretch. Courts must assess land value area by area, based on real evidence like local sale deeds and collector rates. It also highlights a real gap citizens should know: under the Telegraph Act, there is currently no right of appeal against a District Judge's compensation ruling, only limited High Court review.

Kalpataru Power Transmission Ltd. v. Vinod – Legal Case Shots | LegalAware