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Chairman, National Highways Authority of India & Anr. vs. Arvind Kumar Thakur & Anr.

Not available · 2024 INSC 556Decided 24 Jul 2024
Not available
Justice Sanjiv Khanna · Justice Sanjay Kumar

Background

The Patna High Court had ruled in favour of a road user, directing NHAI not to collect toll at the Runni Toll Plaza on the Muzaffarpur-Sonbarsa section of National Highway-77, on the ground that the relevant "section of national highway" was not fully complete under Rule 3(1) of the 2008 Fee Rules. NHAI appealed, and the Supreme Court had earlier stayed the High Court's order on condition that collected toll be deposited in a nationalized bank pending the appeal.

Decision Breakdown

The Supreme Court set aside the High Court's judgment, holding that the road section in question (61.70 km of two-laning plus 20.38 km of bypasses) had in fact been certified complete by an independent contractor and was validly notified for toll collection, and that the High Court had not properly examined this evidence. Since toll had already been collected from users and paid out as annuity to the highway's private contractor under a Build-Operate-Transfer arrangement, the Court found it impractical and unfair to refund the toll or continue the stay. It allowed NHAI to use the toll money deposited in the bank, while leaving open, for future clarification by the Union and NHAI, the broader legal question of what exactly constitutes a "section of national highway."

Lesson Learnt

Once toll has genuinely been collected and spent on servicing a completed highway project, courts are reluctant to unwind those transactions retroactively; road users and authorities should expect toll disputes over "completion" of a highway section to turn heavily on independent certification evidence, not just statutory wording.

Official source (sci.gov.in)View Judgment (PDF)

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