Toll Charges Can't Be Collected If Highway Not Maintained Properly: Madras HC


Radhika Kajarekar

Radhika Kajarekar

Jun 13, 2025


A Madras High Court order that prohibited the National Highways Authority of India (NHAI) from collecting tolls on the Madurai–Tuticorin section of NH-38 due to poor road conditions has been stayed by the Supreme Court.

The Supreme Court’s bench, which included Justices Prashant Kumar Mishra and Manmohan, accepted NHAI’s appeal after concluding that the June 3 ruling of the High Court was against the public interest.

Supreme Court Stays Madras HC Order Halting Toll Collection on NH-38, Cites Public Interest

Senior advocate P Wilson, who was representing petitioner V Balakrishnan, was instructed by the Supreme Court to reply to the notice.

During the proceedings, the NHAI was represented by Additional Solicitor General N Venkataraman.

In addition to criticizing the highway’s declining state, advocate Wilson accused the concessionaire of misusing funds intended for roadside plantations.

The Supreme Court ordered an immediate stay, ruling that stopping toll collection was not the appropriate course of action.

The Madras High Court had previously held that users are only required to pay tolls on well-maintained roads, ruling that tolls could not be collected while the road was in poor condition.

The High Court ruled that the right of citizens to adequate infrastructure was unaffected by the arbitration between NHAI and its concessionaire.

It determined that the National Highways Authority of India Act, 1988, obligated NHAI to collect tolls under poor road conditions.

Petitioner Seeks Action Against Concessionaire for Misuse of Funds and Demands Toll Suspension Until NH-38 Repairs

Through a termination agreement, petitioner Balakrishnan sought action against Madurai–Tuticorin Expressway Ltd. for misusing plantation funds.

He also insisted that toll collection be stopped until the road is repaired and that trees be planted along the sides and median of NH-38.

Tolls persisted despite the concessionaire’s failure to maintain the road, according to the petition, which caused NHAI to end the contract.

The High Court rejected NHAI’s claim that Balakrishnan lacked legal standing in a contractual dispute, noting that he filed the petition as a taxpayer.

The High Court ruled that the petitioner’s case was not rendered invalid by ongoing arbitration proceedings.

It made clear that the ability to collect tolls is a conditional right that depends on the upkeep of road infrastructure.

The High Court ordered that tolls be suspended until repairs are finished, stating that citizens shouldn’t suffer as a result of NHAI and contractor agreements going awry.

Nonetheless, the court permitted toll collection to start up again after the required repairs were completed.


Radhika Kajarekar
Radhika Kajarekar
  • 1051 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Oct. 14, 2023

Startup Innovations: Guru4Invest’s Role in Democratizing Investment Opportunities

Access to capital has always been a significant challenge for startups. Traditional investment methods often leave small investors and new businesses at a disadvantage, with high barriers to entry and exclusive networks favoring established companies. Guru4Invest is changing this dynamic by leveraging cutting-edge artificial intelligence (AI) to level the playing field. The platform democratizes investment […]

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online