Supreme Court: No Toll Collection if Highways Are in Bad Condition

The Supreme Court has upheld the Kerala High Court’s ruling that the National Highways Authority of India (NHAI) cannot collect toll from commuters if the road is in a poor condition.

A Bench led by Chief Justice of India BR Gavai and Justice K Vinod Chandran dismissed NHAI’s appeal against the Kerala High Court order, which had suspended toll collection at Paliyekkara in Thrissur district on NH-544 due to damaged roads and heavy traffic jams.

The Court strongly agreed with the High Court’s view that when people pay toll, they gain a right to expect safe, smooth, and obstruction-free roads. If this right is not honoured, NHAI or its contractors cannot demand toll payments.

The Bench criticised the present system, observing that citizens, despite already paying road taxes, are forced to pay tolls under Build-Operate-Transfer (BOT) contracts. It noted that private contractors often earn far more than the cost of construction and yet allow the roads to fall into disrepair. It also pointed out that toll plazas are often mismanaged, leading to long queues, wasted fuel, and harassment of commuters.

The judges remarked: “The toll is not just on the public’s purse but also on their patience and the environment.”

At the same time, the Court clarified that NHAI or concessionaires can request to restart toll collection once the road is repaired and traffic flow is normal. For any financial losses suffered, concessionaires may approach NHAI or seek an extension of their contract.

During the hearing, the Bench referred to a recent 12-hour-long traffic jam on the stretch, questioning how commuters could be asked to pay ₹150 for a journey that should take one hour but actually took twelve. Both judges even mentioned that they had personally experienced traffic congestion on this road.

The Kerala High Court, on 6 August, had earlier suspended toll collection on the Edapally-Mannuthy stretch for four weeks, citing poor maintenance and severe traffic issues. It stressed that toll fees cannot be collected when highways are in such conditions, since the public’s obligation to pay toll creates a corresponding duty on NHAI to provide motorable roads.