STATE OF HIMACHAL PRADESH Vs. UNION OF INDIA

JUDGEMENT

(1.) This dispute between the State of Himachal Pradesh (Plaintiff), on the one hand, and the Union of India (defendant No.1), State of Punjab (defendant No.2), State of Haryana (defendant No.3), State of Rajasthan (defendant No.4) and Union Territory of Chandigarh (defendant No.5), on the other hand, under Article 131 of the Constitution of India relates to the power generated in the Bhakra-Nangal and Beas Projects.

(2.) The Bhakra dam across the river Satluj was proposed in the year 1944 in the Bilaspur State. The construction of Bhakra dam was to result in submergence of a large territory of the Bilaspur State but would benefit the Province of Punjab. Hence, the Raja of Bilaspur agreed to the proposal for construction of the Bhakra dam only on certain terms and conditions detailed in a draft agreement which was to be executed on behalf of the Raja of Bilaspur and the Province of Punjab. These terms and conditions included payment of royalties for generation of power from the water of the reservoir of the Bhakra dam. The formal agreement between the Raja of Bilaspur and the province of Punjab, however, could not be executed as the Bilaspur State ceded to the Dominion of India in 1948. When the Constitution of India was adopted in the year 1950, Bilaspur and Himachal Pradesh were specified as Part-C States in the First Schedule to the Constitution. In 1954, Bilaspur and Himachal Pradesh were united to form a new State of Himachal Pradesh under the Himachal Pradesh and Bilaspur (New States) Act, 1954. The new State of Himachal Pradesh, however, continued to be a Part-C State until it became a Union Territory by the Constitution (7th Amendment) Act, 1956. In 1966, Parliament enacted the Punjab Reorganisation Act, 1966 which bifurcated the erstwhile State of Punjab to two States, Punjab and Haryana, and transferred some of the territories of the erstwhile State of Punjab to the Union Territory of Himachal Pradesh. With effect from 25.01.1971, this Union Territory of Himachal Pradesh became a full fledged State by the State of Himachal Pradesh Act, 1970. The new State of Himachal Pradesh thus constitutes

(3.) The construction of Bhakra dam has brought about lot of benefits to the country and in particular the defendants Nos. 2, 3, 4 and 5, but it has resulted in submergence of 27869 (twenty seven thousand eight hundred and sixty nine) acres of land in the erstwhile Bilaspur State out of the total 41600 (forty one thousand six hundred) acres. 3/4th of the reservoir of the Bhakra Dam is located in the erstwhile Part-C State of Bilaspur, now part of the State of Himachal Pradesh. Such submergence and reservoir of water over large areas of land in the State of Himachal Pradesh have meant loss of cultivated and uncultivated land to a total extent of 103425 acres, trees and forests, towns, Government buildings, community buildings, wells, springs and paths, gardens, parks, road, bridges, telegraph lines, ferries and these in their turn have resulted in unemployment, loss of agricultural and trading activity, loss of revenue, etc. These losses must be compensated by the defendants Nos. 2, 3, 4 and 5.