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Supreme Court of India 2022-02-04 partly_allowed

WALCHANDNAGAR INDUSTRIES LTD vs THE STATE OF MAHARASHTRA & ANR

Bench: 2 — Hemant Gupta, V. Ramasubramanian

In Brief

Walchandnagar Industries Ltd acquired land for a dam project that submerged 7 km of its private 35 km trolley line, rendering the entire 28 km unacquired portion useless. The company claimed compensation for loss of rails, sleepers, rolling stock, and increased transportation costs. The Court held that while increased transportation costs cannot be compensated without proof they were not passed to customers and without evidence of profit loss, compensation for injurious affection to movable property (rails and sleepers) that demonstrably became useless stands on different footing. The Court partly allowed the appeal, restoring compensation for rails and sleepers while upholding rejection of rolling stock and transportation cost claims.

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Land Acquisition Compensation Injurious Affection Severance Movable Property Transportation Costs Earnings Civil Procedure

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