LexTHE POWER GRID CORPORATION OF INDIA LIMITED versus CENTURY TEXTILES & INDUSTRIES LIMITED & ORS.
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[2016) 11 S.C.R.41 THE POWER GRID CORPORATION OF INDIA LIMITED A v. CENTURY TEXTILES & INDUSTRIES LIMITED & ORS. (Civil Appeal No. 10951 of2016) DECEMBER 14, 2016 [A. K. SIKRI AND R. BANUMATHI, JJ.] Electricity Act, 2003: s.164 and ss.2(5)114168169 - Exercise of powers of Telegraph Authority in certain cases - Indian Telegraph Act, 1885 - ss.10, 15, 16 - Transmission Project - Proposed power lines to be laid by Power Grid, towers to be erected therefor on the land leased out to Century Textiles for mining - Right of Power Grid to erect such towers - Writ petition by Century Textiles contending that erection of towers would render a large chunk of mining area unusable precluding it from doing any blasting for mining purposes, thus the , towers b_e realigned - Dismissed by Single Judge as also by Division Bench, however directing the District Collector to work out the compensation payable to Century Textiles/State Government - Held: Power Grid has all the powers vested in a Telegraph Authority under the 1885 Act, including the power to eliminate any obstruction in the laying down of power lines - Thus, it was within its right to erect the towers over the mining area - Further, change in route alignment of proposed power line was unfeasible as out of 410 towers which were to be erected under the project, 408 towers were already erected when the writ petition was filed by Century Textiles - Division Bench without differing with this factual position; including the fact that the project in question was in public interest, allowed the completion of project - Indian Electricity Ruf.es, 1956 - r.83(2) - Electricity laws. ' s.164 - Work of Licencees Rules, 2006 - r.3(l)(a) and r.3 sub-rule(4) - Requirement of prior consent of owner of land before laying transmission lines -Applicability of- Plea of Century Textiles that erection of towers on the mining area was done without its prior consent - Held: In the instant case, r.3(l)(a) of the, 2006 Rules is not applicable in view of s.164 of the Electricity Act, as Power Grid has all the powers vested in a Telegraph Authority - 41 B c D E F G H 42 A B c D SUPREME COURT REPORTS rzo16111 s.c.R. d(l) of 2006 Rules ceases to apply in the case of Power Grid by virtue of the clause contained in sub-rule(4) of 1:3 which states that nothing contained in 1:3 shall effect powers conferred upon a licensee (Power Grid) u/s.164 of the Electricity Act. -Indian Telef.:raph Act. 1885 - s.16(c) - Co111pensatio11 claim under - Appropriate authority - Erection of towers for laying power transmission lines within mining lease area - Alleged loss to the lessee (Century Textiles) and to the State government - Division Bench directed the District Collector to work out the compensation payable to Century Textiles/State Govemment - Held: No claim for compensation was made either by Century Textiles or State Government - Further, if at all Century Textiles seeks compensation, appropriate action for it would be to file a suit before District Judge. Allowing the appeals by Power Grid, the Court HELD: 1.1 The submission made by Century Textiles was that its permission was not obtained which was needed as per Rule 3 of the Work of Licencees Rules, 2006. In the instant case, the aforesaid Rule is not applicable in view of Section 164 of the Electricity Act, 2003. It is not in dispute that in exercise of powers under Section 164 of the Electricity Act, the powers of Telegrap~ Authority exercisable under Indian Telegraph Act, E · 1885 have been conferred upon the Power Grid. It may also be mentioned that a Central Transmission Utility (CTU) is a deemed licensee under the second proviso to Section 14 of the Electricity Act. Power Grid is a Central Transmission Utility and is, therefore, a deemed licensee under the Electricity Act. This F G coupled with the fact that Power Grid is treated as Authority under the Telegraph Act, 1885, it acquires all such powers which are vested in a Telegraph Authority under the provisions of the said Act including power to eliminate any obstruction in the laying down of power transmission lines. [Paras 18 to 201 (51-D-E, F-G; 52-C-D) 1.2 As per the provisions of the Telegraph Act, 1885, unobstructed access to lay down telegraph and/or electricity transmission lines is art imperative in th.e larger public interest. Electrification of villages all over the country and availability of telegraph li
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