The Supreme Court of India has set aside a judgment of the Punjab and Haryana High Court in a batch of appeals concerning compensation for land used in the erection of power transmission towers. The case, arising from disputes in Sonipat and Jhajjar districts of Haryana, was decided by a Bench of Justice M.M. Sundresh and Justice Rajesh Bindal on August 19, 2025.
Background of the Case
The dispute traces back to the 400 KV Jhajjar Power Transmission Project undertaken by Haryana Vidyut Prasaran Nigam Limited. Jhajjar KT Transco Pvt. Ltd. was awarded the project in 2010 and later subcontracted Kalpataru Power Transmission Ltd. for execution.The transmission lines stretched nearly 100 km across four districts. Landowners challenged the limited compensation awarded for damage caused by the erection of towers and high-voltage lines, arguing that their land use was severely restricted despite ownership not being transferred.
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In 2023, the Punjab and Haryana High Court awarded compensation to landowners at 85% of the collector’'s rate for the land beneath towers and 15% for the right of way under the transmission lines. However, the Supreme Court observed that the High Court had primarily relied on facts from Sonipat cases and applied them uniformly across Jhajjar, without considering local variations. The Bench held that this "one-size-fits-all" approach was flawed.
Delivering the judgment, Justice Bindal remarked:
"Applying a uniform rate for the entire transmission corridor cannot be the correct methodology, as the land characteristics vary significantly from agricultural belts to highway-adjacent plots.
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Arguments of Both Sides
Contractors argued that the High Court’s award was excessive and unsupported by evidence, while landowners maintained that they deserved 100% compensation for land beneath towers and higher payments for restricted usage of land under power lines. The Bench also highlighted that the Ministry of Power guidelines of 2015 could not be automatically applied since they were issued after the project began and had not been formally adopted by Haryana.
The apex court ruled that the High Court’s order could not be sustained in law and remitted the matter for fresh adjudication. Importantly, the judgment drew attention to the lack of an appellate remedy under the Indian Telegraph Act, 1885, under which compensation disputes are decided. The Court suggested that the Law Commission and the Ministry of Law and Justice examine whether statutory appeals should be introduced in such cases.
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The Bench also stressed the need for uniformity in how such cases are registered across districts, noting discrepancies in nomenclature.
This decision has far-reaching implications for landowners and contractors involved in power infrastructure projects. By remanding the matter, the Court has underlined the need for fair, evidence-based compensation while also pressing the government to modernize outdated provisions of the 1885 Act.
The case will now return to the High Court for a fresh decision.
Case Title:- Kalpataru Power Transmission Ltd. (Now Known as Kalpataru Projects International Ltd.) v. Vinod and Ors. etc.
