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  • Section 16 of the Telegraph Act, 1885 read with Section 51 of the Electricity Act, 1910.
  • provisions contained in sub-sections (4) and (5) of S. 16 and also S. 34. Sub-section (4)
  • SECTION 16 TELEGRAPH ACT
  • Section 16(3) read with Section 34(1)
  • General Clauses Act, 1887
  • sub-section (3) of S. 16
  • COURT FEES ACT 1870
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Section 16 of the Telegraph Act, 1885 read with Section 51 of the Electricity Act, 1910.
  • provisions contained in sub-sections (4) and (5) of S. 16 and also S. 34. Sub-section (4)
  • SECTION 16 TELEGRAPH ACT
  • Section 16(3) read with Section 34(1)
  • General Clauses Act, 1887
  • sub-section (3) of S. 16
  • COURT FEES ACT 1870
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

Three revision petitions arise from three original petitions (O.P. Nos. 76/70, 77/70 and 78/70) filed before the District Court, Trichur, seeking compensation under Section 16 of the Telegraph Act, 1885 read with Section 51 of the Electricity Act, 1910. The same petitioner in all three cases alleged that the Kerala Electricity Board (the respondent) took electric lines over his property; as a result 25 coconut trees were cut, there was alleged diminution in value of land under the lines, and one cent of land became useless due to erection of a tower. The District Judge determined compensation in favour of the petitioner. The Kerala Electricity Board filed these revision petitions challenging (a) the maintainability of revision under Section 115 CPC against the District Judge's order and (b) the correctness of the determination of compensation. The three applications before the District Judge were considered jointly and a consolidated order was passed; the present Court considered all three revision petitions together.

Legal Issues Presented

  1. Whether this Court may entertain revision under Section 115 of the Code of Civil Procedure against an order of the District Judge determining compensation payable under Section 16 of the Telegraph Act read with the Electricity Act (i.e., whether the District Judge acts as a persona designata or in his judicial capacity).
  2. Whether the District Judge's determination of the amount of compensation for the damage (including cut coconut trees, diminution in value under electric lines, and land rendered useless by a tower) is legally sustainable.

Arguments of the Parties

Respondent (Kerala Electricity Board) / Respondent's Counsel

  • Relied on sub-section (3) of Section 16 of the Telegraph Act which permits a disputing party to apply to the District Judge to determine the sufficiency of compensation and argued that the District Judge is to act as persona designata rather than in a judicial capacity.
  • Contended that because the District Judge acts as persona designata, his order is not amenable to revision under Section 115 CPC (on the premise that Section 115 applies only to judicial acts of subordinate courts).

Revision Petitioner (the petitioner before this Court — Kerala Electricity Board as revision petitioner)

  • Argued that the District Judge is required to act as a Court (i.e., in judicial capacity) in determining compensation under the Telegraph Act, drawing on the scope of provisions that govern determination and apportionment of compensation by the District Judge.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Electricity Board v. Thomas, 1961 Ker LT 238 : AIR 1961 Ker 237 Principle for treating a net annual income from trees as an annuity for present value calculation (method adopted in valuing future yield). The Court adopted the annuity principle laid down in this case to treat the net annual income (Rs. 16.20 per tree) as an annuity yielding 6% for 68 years and used the multiplier from Park's Valuations to compute present worth; the Court followed the method in this precedent when computing compensation per tree.
Electricity Board v. Tharakan, 1968 Ker LT 493 Followed the principle in Electricity Board v. Thomas regarding valuation by annuity method. The Court noted that Tharakan followed the Thomas approach and used that line of authority to support application of the annuity valuation method.
Abdul Aziz v. Punjab Government, AIR 1942 Lah 186 Authority holding that the District Judge is to act in his judicial capacity (not as persona designata) in similar matters. The Court relied on and expressly agreed with the Lahore High Court's reasoning in this case to hold that the District Judge acts in a judicial capacity and therefore his orders are amenable to revision under Section 115 CPC.
Collector Varanasi v. Gauri Shanker, AIR 1968 SC 384 Referenced decision (exact rule not adopted for the present question in the Court's view). The Court held that this Supreme Court decision was not of assistance to the respondent on the question of whether the District Judge acts as persona designata and did not compel a different conclusion; it was not followed for that issue.
Vareed v. Mary, 1968 Ker LT 583 : AIR 1969 Ker 103 (FB) Referenced decision (exact rule not adopted for the present question in the Court's view). The Court stated that this decision of the High Court was not of assistance to the respondent on the persona designata question and did not compel a different conclusion.

Court's Reasoning and Analysis

The Court divided its analysis into the two central issues raised.

1. Maintainability of Revision under Section 115 CPC (persona designata issue)

  • The Court examined the meaning of "District Judge" as per the General Clauses Act, 1887 — that expression ordinarily means the Judge of a principal Civil Court of original jurisdiction other than the High Court in the exercise of its original civil jurisdiction.
  • There was no specific appointment of the District Judge under the Telegraph Act or the Electricity Act as a tribunal; nothing in Section 16(3) suggested that the District Judge was intended to act otherwise than in a judicial capacity when determining compensation.
  • The subject matter for determination (compensation for damage/infringement of civil rights akin to civil trespass) is ordinarily decided by a Civil Court; therefore, when the statute refers the matter to the District Judge without prescribing special procedure, the necessary implication is that he will determine the matter as a Court.
  • Sub-sections (4) and (5) of Section 16 were considered: subsection (4) requires the telegraph authority to deposit the amount in dispute to the 'Court of the District Judge' and directs the District Judge to adjudicate the rights of claimants and apportion the amount; subsection (5) provides that orders under sub-sections (3) and (4) shall be final. The Court interpreted these provisions as indicating that the District Judge is to function in a judicial capacity (not merely persona designata).
  • Reference to Section 34 and the Court-fees Act, 1870 (fees payable when applications are before the chief Judge of the Presidency Small Cause Court) was taken as further evidence that applications before the District Judge are to be entertained in judicial capacity.
  • On this basis, the Court concluded that the District Judge functions in his judicial capacity and, being subordinate to this Court, his orders are amenable to revision under Section 115 CPC.
  • The Court expressly relied on Abdul Aziz v. Punjab Government (AIR 1942 Lah 186) as supportive authority for this conclusion, and rejected the submission that Collector Varanasi v. Gauri Shanker and Vareed v. Mary compelled a contrary view.

2. Correctness of the District Judge's Determination of Compensation

  • Fact-finding: It was found that 25 trees were cut; 20 of them had reached the bearing stage. The lower Court had appointed a commissioner (report marked Ext. C1). The commissioner (P.W.2) saw the property after the trees were cut and observed trees aged 6–8 years in fairly good condition. Since the cut trees were no longer available for direct particulars, the commissioner assumed the cut trees were of the same age as remaining trees.
  • The commissioner estimated the yield per tree at 25–30 nuts and stated valuation should be fixed on that basis. His report and testimony were not contradicted in a way that established his assessment as wrong or that his estimate was only for a single crop.
  • P.W.1 gave an estimate of 120–130 nuts per tree per year but produced no documentary evidence; the Court treated P.W.1's testimony as interested and declined to rely on it.
  • The lower Court (District Judge) had, without evidentiary basis, treated the commissioner's assessment as referring to a single cropping and multiplied the commissioner's figure by six (assuming six croppings per year) to reach 150 nuts per tree per year. The revising Court found this multiplication unwarranted by evidence and therefore incorrect.
  • The revising Court accepted the commissioner's assessment as representing annual yield at the lower estimate (30 nuts per tree per year) in the absence of contrary material. Valuation: 30 nuts at Rs. 540 per 1000 gives annual value of Rs. 16.20 per tree.
  • Adopting the principle in Electricity Board v. Thomas (and followed in Electricity Board v. Tharakan), the Court treated the annual net income of Rs. 16.20 as an annuity giving 6% per annum for a further bearing period of 68 years. Using Parks Valuations (1970 edn.), page 295, the multiplier for present worth was 16.35. Multiplying Rs. 16.20 by 16.35 produced Rs. 264.87, rounded to Rs. 265 per tree.
  • With the adjustment to the per-tree valuation, the Court found no ground to interfere with the lower Court's determinations relating to diminution in value or tower valuation other than the revised tree valuations; accordingly, the Court modified the lower Court's order to the extent reflected in the monetary adjustments set out in its decretal paragraphs for each O.P.

Holding and Implications

Holding: The three revision petitions are allowed as specified in the order; in other respects they are dismissed.

Direct consequences and orders (as stated in the opinion):

  • O.P. No. 76/70: Total compensation payable Rs. 2,047.10; Rs. 60 already paid by the Department; balance Rs. 1,987.10 to be paid by the Department and is recoverable in execution with interest at 6% per annum from 2-5-1970.
  • O.P. No. 77/70: Total compensation Rs. 1,640.16 (value of 6 yielding trees Rs. 1,590.00; value of bund Rs. 50.16); Rs. 72 already paid; balance Rs. 1,568.16 to be paid by the Department and recoverable in execution with interest at 6% per annum from 2-5-1970.
  • O.P. No. 78/70: Total amount due Rs. 2,712.32 (value of 2 coconut trees at Rs. 265 each, 5 coconut trees at Rs. 15 each, and value of the bund); Rs. 148 already paid; balance Rs. 2,564.32 to be paid by the respondent with interest at 6% per annum; on failure the petitioner may recover by execution.
  • The parties shall bear their own costs.

The opinion does not announce any broader declaratory rule beyond its conclusions on (a) the maintainability of revision under Section 115 CPC in these circumstances (District Judge acts in judicial capacity) and (b) the specific recalculation of compensation for the coconut trees using the annuity method recognized in prior local authority. The Court modified the monetary determinations and directed payment with interest and execution rights as to the balances.

Order: The three revision petitions are allowed to the extent described above; in other respects they are dismissed. Costs to be borne by the parties.

    Kerala State Electricity Board v. C.G Narayanan .

    1. These three revision petitions arise out of three applications, O.P Nos. 76/70, 77/70 and 78/70 on the file of the District Court, Trichur. Those three applications were considered jointly and a consolidated order was passed by the District Judge and in this Court also I am considering all these together in this order. These applications were filed before the District Judge. Trichur for compensation under Section 16 of the Telegraph Act, 1885 read with Section 51 of the Electricity Act, 1910. For supply of electricity electric lines were taken over the property involved in these cases by the Electricity Board who is the respondent in all the three applications. According to the petitioner, who is the same in all the applications, on account of taking electric lines over his property 25 cocoanut trees have been cut from it and he has suffered damage on account of it. Be also claimed damages for the diminution of the value of the portion of the property underneath the electric lines. Again he also claimed damages for the loss of one cent of land, rendered useless by the construction of a tower in it. As stated earlier, the learned District Judge, Trichur considered these claims and determined the compensation to be paid to the applicant in all the three applications. Aggrieved by that the Kerala Electricity Board has filed these three revision petitions.

    2. Two points arise for consideration in this case. One is whether this Court is entitled to interfere in revision with the order passed by the District Judge determining the compensation payable under the Telegraph Act read with the Electricity Act, The second question is whether the determination of compensation made by the District Judge is legally sustainable. As regards the first Question the respondent's counsel referred me to sub-section (3) of Section 16 of the Telegraph Act which runs as follows:—

    “Section 16(3). If any dispute arises concerning the sufficiency of the compensation to be paid under Section 10, clause (d), it shall, on application for that purpose by either of the disputing parties to the District Judge within whose jurisdiction the property is situate, be determined by him.”

    and submitted that the District Judge is to act in these matters as a persona designata rather than in a purely judicial capacity. His further submission was that as the District Judge is only a persona designata in these matters his order cannot be revised under Section 115 of the CPC as he is not acting as a Court in the discharge of his duties in disposing of these applications. According to the revision petitioner, the District Judge is required to act only as a Court and not as a persona designata in considering these applications and that will be clear from the scope of the various provisions of the Telegraph Act relating to the determination and apportionment of compensation by the District Judge.

    3. Though this Court considered revision petitions like these previously the question of maintainability of such revisions is not seen raised or decided by this Court (See Electricity Board v. Thomas, 1961 Ker LT 238 : (AIR 1961 Ker 237) and Electricity Board v. Tharakan, 1968 Ker LT 493). This does not mean that it cannot be raised now or decided. So I shall proceed to consider the Question.

    4. The District Judge, when that expression is used in a Central Act means, as per the General Clauses Act, 1887 the Judge of a principal Civil Court of original jurisdiction other than the High Court in the exercise of its original civil jurisdiction unless there is anything repugnant in the context. Ordinarily he functions as a Judge of the principal Civil Court of original jurisdiction. He has not been appointed under any provision of the Electricity Act or the Telegraph Act as a Tribunal to decide this question. There is nothing particular in sub-section (3) of S. 16 also to suggest that the District Judge is intended to act as otherwise than in a judicial capacity when determining the amount of compensation. The matter that he is called upon to decide is a matter relating to the compensation for the infringements of a civil right, namely, compensation for civil trespass that has been committed, under the cover of the statute, viz. the Telegraph Act it is not a case where foe is called upon to decide special matters like election disputes or assessment of taxes which stand upon an entirely different footing. A determination of the compensation for the damage caused for civil trespass is a matter that comes up ordinarily before a Civil Court for adjudication. Ajjain though Sec. 16(3) enables any disputing party to apply before the District-Judge, the statute does not provide for the procedure which must be followed by the District Judge in the discharge of his function in determining the compensation payable. This can only be because the matter has been-referred to him not as a persona designate but as a Court and when the matter is referred for determination to a Court with no further provision the necessary implication is that the Court will determine the matters as a Court. Its jurisdiction is only enlarged. All the incidence of such jurisdiction including right of appeal from its decision remain the same unless there is some provision to the contrary in the statute itself. So from all these, the intention of the Legislature is clear that the District Judge is called upon to act not as a persona designata but only as a Court. This intention of the legislature is further made clear by the provisions contained in sub-sections (4) and (5) of S. 16 and also S. 34. Sub-section (4) provides that the telegraph authority must deposit the amount in dispute to the ‘Court of the District Judge’ and the District Judge must adjudicate the dispute, as regards the rights of the persons who claim the amount or the persons to whom the amount must be apportioned. This clearly shows that the District Judge referred to in sub-section (4) is to function not as persona designata but in a judicial capacity. Again, sub-section (5) provides that orders passed under sub-sections (3) and (4) by the District Judge shall be final but for this finality in the light of the fact that the matter is being decided by the Court the ordinary right of appeal and second appeal may be available to the aggrieved party. The Legislature, did not want that.

    5. Lastly a reference to Sec. 34 shows that if the chief Judge of the Presidency Small Cause Court is entertaining the applications under Section 16(3) read with Section 34(1) the fees payable on such application must be the fees payable under the Court-fees Act, 1870 for such application before the District Judge. This also shows that the application before the District Judge is to be considered by him not as a persona designata but in his judicial capacity. So according to me the District Judge functions in these matters in his judicial capacity as a District Court and that Court being subordinate to this Court a revision under Section 115 of the CPC will lie. I am supported in this conclusion by a decision reported in Abdul Aziz v. Punjab Government, (AIR 1942 Lah 186) where on a similar question being raised, their Lordships of the Lahore High Court took the view that the District Judge is to act in his judicial capacity and not as a persona designata in these matters. I respectfully agree with the reasoning in that case and hold that the revision petition is maintainable under Section 115 of the CPC before this Court. The decision of the Supreme Court in Collector Varanasi v. Gauri Shanker, (AIR 1968 SC 384) and the decision of this Court in Vareed v. Mary, 1968 Ker LT 583 : (AIR 1969 Ker 103) (FB) are not of any her to the respondent on this question and do not in any way compel me to arrive at a different conclusion on this question.

    6. The second point that has to be considered is whether the determination of compensation for the damages caused by drawing electric lines over the property of the respondent has been properly made. It has been found that 25 trees have been cut of which 20 trees had reached the bearing stage at the time they were cut. For determining the compensation of these trees and for other matters a commission was issued by the Court below and his report has been marked as Ext. Cl. According to the commissioner, when he visited the soot he found trees between the ages of 6 to 8 years in the property in a fairly good condition. As the trees for which compensation is claimed had already been cut before the commissioner visited the spot the commissioner could not note the particulars of these trees or whether they had become productive. So what he did was to assume that the trees that have been cut were of the same age as those that now remain in the property and on that basis to proceed to determine the income which the trees cut and removed would have fetched. According to him, the income will be 25 to 30 nuts and he also stated that the valuation will have to be fixed on this basis. The commissioner was examined as P.W 2 and nothing has been brought out in his examination or cross-examination to show that the assessment made by him is wrong in any way or that the income that he has estimated for these trees is not the income for the whole year but only for a particular crop. Though P.W 1 stated that the average not income of these trees will be between 120 and 130 nuts per tree he has not produced any record or other evidence to show that he has been obtaining the income from the other trees that now remain at this rate per year. So his interested testimony cannot be acted upon. The lower Court also did not rely on its deposition. The lower Court has simply without any basis found that the commissioner's assessment can only be for a particular cropping and not for the whole year and on the basis that annually there will be six croppings multiplied the number found by the commissioner by six times and fixed the income at 150 nuts per tree per year and determined the compensation payable accordingly. As stated earlier, this conclusion of the lower Court is not warranted by any evidence in this case. So I come to the conclusion that the lower Court has clearly gone wrong in finding the not yield of the tree per year. In the absence of other materials accepting the commissioner's assessment of the yield per year at 30 nuts not and calculating the value of those 30 nuts at the rate of Rs. 540/- per 1000, each tree would have fetched annually Rs. 16.20 p. The Court below has estimated the further bearing period of these trees as 68 years and nothing has been stated before me to come to a different conclusion. So adopting the principle laid down in the case Electricity Board v. Thomas, 1961 Ker LT 238 : (AIR 1961 Ker 237) which was followed in Electricity Board v. Tharakan, (1968 Ker LT 493) this Rupees 16.20 p. will be like an annuity which gives a return at 6% per annum for 68 years. The present worth of that annuity is arrived at by multiplying this net income by 16.35 limes on the basis of the table contained in Parks Valuations 1970 Edn., page 295. On that basis the compensation payable per tree will be Rupees 264.87 which figure I round up to Rs. 265/-.

    7. Though the revision petitioner questioned the basis of determination of the compensation payable for diminution in value on account of drawing electric lines over the property and also Questioned the correctness of the value of one cent of land rendered useless by construction of a tower in the property. I do not think that any interference is called for on that account. In the result, in modification of the orders passed by the Court below the following will be the compensation payable to the applicant in the three cases.

    (a) The claim made in O.P No. 767-70 is for 5 yielding coconut trees and the compensation regarding the bund, the tower and the diminution in value. On the finding mentioned above the total compensation payable in this behalf is Rs. 2,047.10 out of which the petitioner has been paid Rs. 60/- by the Department. The balance of Rs. 1,987.10 will be paid by the Department and the petitioner will be entitled to realise the same in execution of the order passed herein with interest at 6% per annum from 2-5-1970.

    (b) In O.P No. 77/70 the petitioner, is entitled to be awarded the value of 6, yielding coconut trees and the value of; the bund. The value of 6 coconut trees is Rs. 1590.00 and the value of the bund is Rs. 50.16 Therefore the total is Rs. 1640.16 out of which the petitioner has been paid already Rs. 72/-. The balance of Rs. 1,568.16 will be paid by the department and the petitioner is entitled to recover the same from the respondent in execution of the order passed herein with interest at 6% from 2-5-1970.

    (c) In O.P No. 78/70 the petitioner is entitled to the value of 2 cocoanut trees at the rate of Rs. 265/- per tree and 5 cocoanut trees at the rate of Rs. 15/- and also the value of the bund. The amount due thereon is Rs. 2,712.32 out of which the petitioner has been paid Rs. 148/-. The balance of Rs. 2,564.32 will be paid by the respondent, to the petitioner and on failure to do so the petitioner will be entitled to recover the same from the respondent with interest at 6% per annum.

    8. The three revision petitions are allowed as above and in other respects dismissed. The parties shall bear their costs.

    9. Order accordingly.

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    Comments

    Kerala State Electricity Board v. C.G Narayanan .
    (Nov 24, 1972)