In Brief
A company's trolley line for transporting goods was partially acquired when a dam project submerged 7 km of its 35 km private rail network, rendering the remaining 28 km useless. The company claimed compensation for rails, sleepers, rolling stock, and increased transportation costs after switching to road transport. The High Court rejected most claims, finding no loss of profits. The Supreme Court held that injurious affection to movable property (rails and sleepers) is distinct from loss of earnings. Without evidence that increased costs were not passed to customers or that earnings actually fell, transportation cost claims failed. However, evidence showed movable property became useless after acquisition, so compensation for rails and sleepers was restored. Appeals were partly allowed.
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