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M/s Suzlon Energy Ltd. v. Jayanthi

Civil Appeal · 2021 INSC 753Decided 18 Nov 2021
Civil Appeal No. 6961 of 2021
Justice Uday Umesh Lalit · Justice S. Ravindra Bhat

Background

Suzlon Energy had obtained permission from authorities to erect electric transmission towers on the respondents' agricultural land under Section 16(1) of the Indian Telegraph Act, 1885. The landowners challenged this before the Madras High Court; a single judge rejected their objections, but the Division Bench, while not striking down the permission itself, directed that a fresh enquiry be held under Section 17 of the Act to examine the landowners' grievances (including compensation and the route of the towers) before implementation could proceed. Suzlon appealed to the Supreme Court against these additional directions requiring a fresh enquiry.

Decision Breakdown

During the course of the appeal, Suzlon's counsel voluntarily offered to pay significantly enhanced compensation to the affected landowners, first 300%, and ultimately 500% more than the originally assessed compensation, along with assurances that agricultural operations would not be materially disrupted by the towers. On the basis of this undertaking, which the Court recorded as binding on the company, the Supreme Court set aside the High Court Division Bench's order requiring a fresh enquiry and restored the original single-judge order upholding the permission, subject to the enhanced 500% compensation being determined and paid within specified timelines.

Lesson Learnt

Disputes over infrastructure projects on private land can often be resolved through a negotiated, court-recorded commitment on fair compensation, which may be a faster and more practical outcome for landowners than prolonged litigation over the underlying permission itself.

Official source (sci.gov.in)View Judgment (PDF)

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