No toll collection, if no unhindered, regulated access to highways ensured by NHAI: Kerala HC

Time of India

a day ago

The
Kerala High Court
on Wednesday said if the
NHAI
or its agents fail to provide unhindered, safe and regulated access to highways, then they cannot collect
user fees
or tolls for such roads from the public.
The ruling by a division bench of Justices A Muhamed Mustaque and Harisankar V Menon came while suspending
toll collection
on the Edappally-Mannuthy stretch of NH 544.
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"... we order that the collection of user fees shall be suspended forthwith for four weeks, and we further order that the central government shall take appropriate decisions within the above period addressing the concern and grievance of the public..." the court said.
The interim order suspending toll collection came on a batch of writ petitions challenging the charge of user fees from the public when currently the stretch of highway was suffering from heavy traffic congestion due to construction of underpasses, flyovers, drainage work, etc. and improper maintenance of the service road.
The bench said that while the public was obliged to pay the user fees at the toll for using the highway, the National Highways Authority of India (NHAI) has the responsibility to ensure smooth traffic without any barrier created by it or its agents, the concessionaires.
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"This relationship between the public and the NHAI is bound by the tie of public trust. The moment it is breached or violated, the right to collect toll fees from the public created through statutory provisions cannot be forced on the public," the court said.
The bench also pointed out that every public infrastructure project initiated by the State inherently imposes a corresponding obligation on it to ensure that
public interest
is not only safeguarded but prioritised.
"This responsibility necessitates effective public management and oversight of such infrastructure projects. The contractual obligations entered into by the State with private partners cannot absolve the State of its foundational duty arising from the public trust doctrine," the bench said.
One of the contentions of the NHAI was that the toll collection was a matter of contract and any direction to stop it would have serious consequences under the contract law, giving rise to a claim for damages against it.
Rejecting the contention, the bench said no agreement between the State and a private entity can override the imperative to protect public interest.
"If the public is not receiving the intended benefit of road usage in return for the user fees imposed, the State cannot compel payment of such a fee solely based on a private contractual arrangement," it said.
It also said that the entitlement of the NHAI or its concessionaire to collect user fees arises under statutory provisions and not merely based on any inter se contractual arrangement.
"Consequently, in the absence of compliance with the objectives underlying the imposition of such fees, the National Highways Authority or its concessionaire cannot assert a right to demand or collect the same," it said.
The bench further said the obligation of the public to pay a user fee under statutory provisions is premised on the assurance that their use of the road will be free from hindrances.
"Any failure on the part of the National Highways Authority or its agents to ensure such access constitutes a breach of the public's legitimate expectations and undermines the very basis of the toll regime," the court said.
The bench noted that in the instant case, the NHAI has ignored the interests of the public and has taken their grievances lightly.
"We note with concern the total apathy displayed by the National Highways Authority in addressing the grievances raised, despite multiple opportunities having been made available to them at least from February 2025 onwards.
"Although the issue was repeatedly brought to their attention, no meaningful steps were taken to pursue redressal with the central government," it said.
It also noted that there are "no managerial standards" evolved by the central government to address issues of this nature.
"In such circumstances, we are of the considered view that the collection of toll shall remain suspended until the central government, in consultation with the National Highways Authority, chief secretary of the state and concessionaire, takes appropriate remedial action addressing the public grievance," the bench ordered.
It further said that public accountability principles demand that the central government intervene in the matter, as they are the only authority to prescribe rates and decide on the levy of fees.
"In a situation like this, in what manner the toll fee has to be levied is for the central government to decide; whether a pro rata deduction has to be given, or the levy of the fee be suspended till measures are taken; all these are to be addressed by the central government," the bench said.