Case Note & Summary
The case arose from a writ petition filed by a landowner seeking exemplary damages against the District Collector and Tamil Nadu Electricity Board for removal of an unauthorized structure that obstructed a high-tension electric line. The Collector had passed an order on 14.03.2014 noting that the building was constructed without approval and exactly underneath the energized feeders, preventing the full capacity generation from North Chennai Thermal Power Station. The Collector directed demolition of the unauthorized structure, which was carried out. The landowner challenged the action and claimed exemplary damages. The Single Judge, in W.P.No.17186 of 2015 decided on 13.09.2022, held the landowner entitled to exemplary damages on the ground that the erection of high-tension lines diminished the property value. The District Collector preferred an intra-court appeal, contending that the authorities had acted lawfully and within their powers under the Electricity Act, 2003 and Indian Electricity Rules, 1956, and that compensation for transmission lines is governed by the Indian Telegraph Act, 1885, not by exemplary damages. The appellant argued that the landowner had breached an undertaking not to obstruct the project and constructed unauthorized structure with ulterior motive. The respondent landowner did not appear. The Division Bench examined the Collector's proceedings and found that the authorities had followed due procedure in removing the unauthorized obstruction. The Court held that when competent authorities act lawfully and within their powers for implementing public projects, the question of granting exemplary damages does not arise unless it is established that they exceeded their powers or caused impermissible damage. The Court emphasized that larger public interest must be taken into consideration in such projects and that the writ court's observation was not in consonance with established legal principles. Accordingly, the impugned order of the Single Judge was set aside and the writ appeal was allowed with no costs.
Headnote
A) Electricity Law - Obstruction of High-Tension Lines - Removal of Unauthorized Structure - Electricity Act, 2003, Section 68(5) and Indian Electricity Rules, 1956, Rules 79 to 82 - The Collector found that an unauthorized building constructed underneath the EHT line obstructed its energization and posed safety hazards; the building was ordered to be demolished. The authorities acted within statutory powers. Held that exemplary damages were not payable because the authorities' actions were lawful and in public interest (Paras 2, 5-6). B) Electricity Law - Compensation for Transmission Lines - Indian Telegraph Act, 1885 - Compensation as admissible under the Act is the appropriate remedy when high-tension lines are commissioned on private property, not exemplary damages for removal of obstructions (Para 2, 5). C) Public Interest - Balance of Individual Rights and Public Projects - Larger public interest must prevail in projects of power transmission, which are essential for the welfare of the people and the nation; individual grievances are to be compensated as per law, not by stalling public projects (Paras 4-5). D) Administrative Law - Exemplary Damages Against Public Authorities - Exemplary damages cannot be awarded unless it is shown that the authorities exceeded their powers or caused impermissible damage; lawfully acting authorities are not liable for such damages (Paras 5-6).
Issue of Consideration
Whether exemplary damages can be awarded when the authorities have acted lawfully and within their powers in removing unauthorized structures that obstruct public power transmission projects?
Final Decision
The writ appeal was allowed. The order of the Single Judge dated 13.09.2022 in W.P.No.17186/2015 was set aside. No order as to costs. The connected miscellaneous petition was closed.
Law Points
- Legal points not extracted
- compensation under Indian Telegraph Act for erection of high-tension lines on private property
- larger public interest must be considered in public projects
- exemplary damages not payable when authorities act lawfully and within their powers unless they exceed those powers or cause impermissible damage
