Supreme Court Upholds Writ Petition Against Toll Plaza Construction — Violation of National Highways Fee Rules Established. The court found that the toll plaza's location did not primarily serve local residents, violating Rule 8 of the National Highways Fee (Determination of Rates and Collection) Rules, 2008.

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Case Note & Summary

The dispute arose from the construction of a toll plaza at 194 km of NH30 in Bihar, which was challenged by the writ petitioners, comprising local residents. They filed Writ Petition No. 5643 of 2012 seeking to restrain the construction, arguing it violated Rule 8 of the National Highways Fee (Determination of Rates and Collection) Rules, 2008. The learned Single Judge allowed the writ petitions, directing the NHAI to shift the toll plaza to a location that would not impose toll on residents using the old highway. The appellants, including the NHAI and its officials, filed a Letters Patent Appeal against this decision. The Division Bench upheld the Single Judge's ruling, emphasizing that the toll plaza's location did not primarily serve local residents and violated statutory requirements. The court found that the NHAI had not adequately justified the toll plaza's location within municipal limits and that the decision prioritized commercial viability over public interest. The court reiterated the need for the executing authority to provide written reasons for such decisions, particularly when they affect local residents. Ultimately, the court confirmed the need for compliance with Rule 8, which mandates that toll plazas should not be established within 10 km of municipal limits unless justified, and directed the NHAI to relocate the toll plaza accordingly.

Headnote

A) Administrative Law - Judicial Review - Statutory Compliance - National Highways Fee (Determination of Rates and Collection) Rules, 2008, Rule 8 - The court held that the construction of the toll plaza at 194 km violated Rule 8 as it was not primarily for the use of local residents and imposed toll on those using the old NH30. The executing authority failed to provide reasons for the location of the toll plaza within municipal limits, which was necessary under the rules (Paras 11-12).

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Issue of Consideration

Whether the construction of a toll plaza at 194 km of NH30 violated Rule 8 of the National Highways Fee (Determination of Rates and Collection) Rules, 2008.

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Final Decision

The Supreme Court upheld the decision of the learned Single Judge, confirming that the toll plaza's location violated Rule 8 of the National Highways Fee Rules and directed the NHAI to relocate the toll plaza.

Law Points

  • National Highways Fee Rules
  • construction regulations
  • municipal limits
  • toll plaza location
  • public interest
  • judicial review
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Case Details

2021 LawText (SC) (09) 299

Civil Appeal No. 11141 of 2018

2019-01-15

K.M. Joseph

Shri Neeraj Kishan Kaul, Shri Shyam Divan, Shri Ravi Bharuka

National Highways Authority of India, Chairman, General Manager

Madhukar Kumar & Others

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Nature of Litigation

Challenge to the construction of a toll plaza on NH30.

Remedy Sought

Writ petitioners sought to restrain the construction of the toll plaza.

Filing Reason

Alleged violation of Rule 8 of the National Highways Fee Rules.

Previous Decisions

The learned Single Judge allowed the writ petitions, directing the NHAI to relocate the toll plaza.

Issues

Whether the toll plaza's location violated Rule 8 of the National Highways Fee Rules Whether the NHAI provided adequate justification for the toll plaza's location

Submissions/Arguments

Appellants argued that the toll plaza location complied with Rule 8 and was necessary for commercial viability. Respondents contended that the toll plaza location imposed unfair tolls on local residents and violated statutory requirements.

Ratio Decidendi

The court emphasized the necessity for compliance with statutory requirements in the construction of toll plazas, particularly the need for written justification when located within municipal limits, as mandated by Rule 8.

Judgment Excerpts

The proposed location for establishment of Toll Plaza is not only violation of Rule 8 of Rules 2008 but also charges tax from the persons who do not intend to use the toll road rather prefer to use old N.H. 30. The executing authority must assign reasons in writing before taking a decision to construct a toll plaza within 10 km of the municipal limits.

Procedural History

The writ petitioners filed Writ Petition No. 5643 of 2012, which was allowed by the learned Single Judge. The appellants filed LPA No. 388 of 2015 against this decision, which was heard along with other appeals and ultimately upheld by the Division Bench.

Acts & Sections

  • National Highways Act, 1956: Section 7
  • National Highways Fee (Determination of Rates and Collection) Rules, 2008: Rule 8
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