In a significant ruling, the Supreme Court of India on Monday dismissed the National Highway Authority of India’s (NHAI) challenge to a Kerala High Court order suspending toll collection at the Paliyekkara toll plaza on National Highway (NH) 544 in Thrissur district. The High Court had earlier suspended tolls for four weeks, citing poor road conditions and severe traffic bottlenecks.
A Bench comprising Chief Justice of India (CJI) BR Gavai and Justice K Vinod Chandran upheld the Kerala High Court’s decision and observed that citizens should not be made to pay tolls for roads that are in “rank disrepair.” The Court stressed that since vehicle owners already pay motor vehicle tax, imposing tolls for damaged and congested roads amounts to unfair double taxation.
“In the meanwhile, let the citizens be free to move on the roads, for use of which they have already paid taxes, without further payment to navigate the gutters and pot-holes, symbols of inefficiency,” the Bench remarked.
The Court issued strong criticism of the Build Operate and Transfer (BOT) system of road projects, highlighting how toll collection has often turned exploitative.
“That, in a democracy, roads are laid on Build Operate and Transfer (BOT) contracts to ensure that the cost is collected from the users, when motor vehicle tax is remitted for their use on roads, is a sad reflection of free market. That, the successful bidder extracts much more than what is spent on construction and maintenance, is a comedy of errors. That, the roads fall into disrepair due to vagaries of nature and often rank neglect, is the stark reality,” the order stated.
The Bench further lamented the toll collection experience for citizens:
“That, the toll collectors at the booths, often due to understaffing and overwork, behave like satraps, is a fact of life. That, the poor citizen is bound to wait for hours, in queue and in a cramped space, with the engine running but hardly moving, is a tragedy. That, the toll is really on the purse and the patience of the citizen, as also the environment, is the downside.”
The Court recorded Solicitor General Tushar Mehta’s assurance on behalf of NHAI that maintenance work is underway. It also clarified that once smooth traffic resumes, the NHAI or concessionaire may approach the High Court to lift the suspension of toll collection, even before the four-week period ends.
Addressing the concessionaire’s claim that it was not responsible for the present situation since work on black spots was contracted to another entity, the Supreme Court directed the High Court to implead the said contractor in the case. It further clarified that the High Court’s earlier observations were not findings of absolute liability on NHAI and that issues of damages could be decided by an appropriate forum.
With this, the Supreme Court dismissed the appeals filed by NHAI and reinforced its position that citizens should not be burdened with tolls when roads remain unsafe and poorly maintained.
Case: National Highway Authority of India and Anr. vs OJ Janeesh and Ors. – Available on LAWFYI.IO
