CHAIRMAN TAMIL NADU ELECTRICITY BOARD Vs. S MAHENDREN

JUDGEMENT

(1.) The Petitioners namely the Tamil Nadu Electricity Board prepared an estimate for augmenting the power supply and the same was approved by the Technical Branch of the Board under B.P. (FB) No. 278, dated 11.10.1991 for increasing the current carrying capacity by erecting a 110 KV Single Circuit Line on Double Circuit Tower by changing Dog Conductor into Panther Conductor. Pursuant to the said B.P., the Board had done certain investigation and ultimately found that the said tower could be established in the land belonging to the First Respondent. On coming to know this, the First Respondent had made his objections to the Second Petitioner orally. When the work was being proceeded with, on behalf of the First Respondent, a Lawyer's Notice dated 18.4.1994 was issued asking the Third Petitioner not to continue with any kind of construction work. This notice was followed by another letter dated 3.5.1994. Since on behalf of the Board, the work was going on, the First Respondent approached this Court and had filed a Writ Petition in W.P. No. 12824 of 1994. This Court by order dated 15.9.1994 had directed the First Respondent to send a representation to the Board requesting the Board to pay the compensation. Pursuant to the said order, on behalf of the Board, a request was made to the Sub-Registrar to furnish the market value of the land in question as of July 1994. Based on the report given by the Sub-Registrar, Villivakkam, the Third Petitioner was prepared to pay the amount at the rate of Rs. 69/- per sq. ft. for an extent of 930.50 sq. ft., out of the entire extent of 2537 sq. ft. owned by the First Respondent. The said compensation was communicated to the First Respondent by the Third Petitioner's letter dated 13.5.1995. However, the First Respondent was not willing to accept the compensation on the ground that the compensation should be paid for the entire plot owned by the First Respondent, because according to the First Respondent, the area cannot be used for any other purpose because of the construction of heavy tower legs.

(2.) Since the compensation offered by the Board was not accepted by the First Respondent, the Superintending Engineer had cancelled the Third Petitioner's letter dated 9.2.1996 and stated that the matter may be referred to arbitration. Aggrieved against the order passed by the Superintending Engineer, the First Respondent had initiated Contempt Petition before this Court in Contempt Petition No. 171 of 1996. This Court disposed of the said Contempt Petition holding that the rate offered by the Board could be received by the First Respondent and if still aggrieved by the amount so fixed, the First Respondent could refer the matter to arbitration as provided under Section 19(2) of the Indian Electricity Supply Act, 1910. Thereafter, the First Respondent sent a letter dated 13.11.1996 to the Third Petitioner to disburse the amount offered, namely, Rs. 63,274/- without prejudice to the First Respondent's right and contentions. A reply dated 27.2.1997 was sent on behalf of the Board to the First Respondent. Not satisfying with the reply sent by the Board, the First Respondent once again approached this Court by filing W.P. No. 18374 of 1998 for a mandamus to consider the First Respondent's letter dated 13.11.1996 and consequently direct the Petitioners to appoint their Arbitrator and the same was disposed of by this Court by order dated 4.12.2000.

(3.) Pursuant to the order passed by this Court, an Arbitral Tribunal was constituted. The First Respondent appointed the Third Respondent as his nominee Arbitrator and in turn, the Board had appointed the Fourth Respondent as its nominee Arbitrator and both the Arbitrators had in turn appointed the Second Respondent as the Presiding Arbitrator. The First Respondent filed a Claim Statement before the Arbitral Tribunal on 18.4.2002 wherein the First Respondent sought for a compensation of Rs. 4,00,000/- for his plot. The Petitioners filed a Counter on 24.4.2002. Thereafter, an inspection of site was held on 5.2002. The Arbitral Tribunal after considering the documents produced by both the parties, passed an Award on 15.5.2003, fixing the compensation at Rs. 68/- per sq. ft. for the entire land owned by the First Respondent, namely, 2537 sq. ft. and the total compensation awarded is Rs. 1,72,516/-. In addition to the fixing the compensation, the Arbitral Tribunal has awarded an additional amount at 12% of the land value which comes to Rs. 22,047.48. The solatium is calculated at 30% of the land value, which comes to Rs. 51,754.80. Hence, the total compensation is determined at Rs. 2,46,318.24 and the interest is calculated at 9% for first one year on the land value, and thereafter, the claimant is entitled to interest at 15% p.a. on the land value till the date of realization of the entire amount. Aggrieved over the said Award passed by the Arbitral Tribunal, the Petitioners have come forward with this Petition to set aside the said Award.