Case Note & Summary
The dispute arose between Century Rayon Limited and IVP Limited regarding the construction of electricity transmission towers on land owned by IVP Limited. IVP Limited filed a suit for permanent injunction against the Maharashtra State Electricity Distribution Company Limited (MSEDC) and Century Rayon Limited, claiming that the construction was being carried out without proper approval. Century Rayon Limited sought permission for the construction, which was granted by the Maharashtra State Electricity Transmission Co. Ltd (MSETCL) under certain conditions. The High Court of Bombay dismissed the writ petition filed by Century Rayon Limited, affirming the trial court's order that temporarily restrained the construction. The Supreme Court, while addressing the interim injunction, noted that the construction had already progressed significantly, with 80% of the work completed. The court highlighted that the MSETCL had obtained necessary permissions from the District Magistrate, and the construction was in the public interest. The court found that the balance of convenience did not support the continuation of the injunction and set it aside, allowing the appellant to proceed with the construction upon making an ad hoc payment of Rs. 20,00,000 to the first respondent. The decision emphasized the importance of unobstructed access for laying electricity transmission lines for public benefit. The appeal was allowed without costs, and all pending applications were disposed of.
Headnote
A) Electricity Law - Interim Injunction - Balance of Convenience - Indian Telegraph Act, 1885, Section 10, Electricity Act, 2003 - The court found that the balance of convenience did not favor maintaining the interim injunction against the appellant, as significant work had already been completed on the transmission line. The court set aside the injunction order, allowing the appellant to proceed with the construction subject to payment of compensation (Paras 4-10).
Issue of Consideration
Whether the interim injunction against the construction of electricity transmission towers should be maintained or set aside.
Final Decision
The Supreme Court set aside the interim injunction order, allowing the appellant to proceed with the construction of the electricity transmission towers upon making an ad hoc payment of Rs. 20,00,000 to the first respondent. The payment was subject to the outcome of the civil suit regarding compensation.
Law Points
- Interim injunction
- compensation
- public interest
- Telegraph Act
- Electricity Act
