Madras High Court Restrains State Buses From Plying Through 4 Toll Plazas On National Highway Over Unpaid Dues

While taking the extreme step, Justice Anand Venkatesh added that the court was aware of the consequences of such an order but it was necessary to “jolt” the officials, who would otherwise not take any effort to settle the dispute. The court added that the if the payments are kept on being delayed, it would escalate to astronomical proportions.

“If ultimately, the Corporations are not able to come up with a viable solution to settle the dues, the extreme step of stopping buses from using the National Highways has to be resorted. This Court is aware of the potential consequences if such order is passed, since ultimately, it is the common man, who is using these Government buses who will be adversely affected. However, unless and otherwise the order which will jolt the officials, is passed, they will not take efforts to settle this dispute, which has been going on for many years together. The longer the payments are delayed, the more the penalty and interest will escalate, potentially reaching astronomical proportions,” the court said.

The court said that such a restriction, which would start on 10^th July, would continue till the corporation comes up with a viable solution for the payment of dues.

Apprehending the law and order problem that would arise as a result of the direction, the court also directed the Director General of Police to issue necessary instruction to the concerned jurisdictional police to prove sufficient police protection at the toll plazas. The court asked the police to ensure that no undue pressure is exerted on the Toll Plazas to permit the buses to ply through.

The petitioners - Madurai - Kanyakumari Tollway Private Limited, Kanyakumari - Etturavattam Tollway Private Limited, Salaipudhur - Madurai Tollway Private Limited, Nanguneri - Kanyakumari Tollway Private Limited had approached the court seeking various directions. The petitioners had sought direction to the TNSTC to comply with the National Highway Fee ( Determination of Rates and collection) Rules 2008, to install FASTag in all its buses in compliance with the Central Governments circulars, to pay penalty for not installing FASTag, and to pay arrears of user fee.

Senior Advocate Satish Parasaran, appearing for the petitioners, had submitted that approximately Rs. 227 crores was the arrears payable by the corporation to the toll plazas. The corporation on the other hand argued that a substantial amount had been paid by it.

Following this, the petitioners filed a memo of calculation stating that approximately Rs. 276 crore remained to be paid by the corporation, including the penalty and arrears. It was submitted that even excluding the penalty and interest, a sum of Rs. 113 crore was payable.

The court noted that the corporation had not taken any steps to settle the dues or come up with a viable solution. The court also highlighted that on previous occasions, the court has held that if the dues are not cleared, the buses could be stopped as the problem of road maintenance is interlinked with the failure of State enterprises to pay toll charges.

Thus, the court directed the four toll plazas to not permit TNSTC buses to ply through them till steps are taken to repay the arrears.

Counsel for Petitioner: Mr. Satish Parasaran, Senior Counsel For Mr.Karthik Sundaram

Counsel for Respondents: Mr. L.S.M.Hasan Fizal Additional Government Pleader, Mr. SU. Srinivasan Standing Counsel

Case Title: M/s.Madurai - Kanyakumari Tollway Private Limited and others v. Tamil Nadu State Transport Corporation

Citation: 2025 LiveLaw (Mad) 233

Case No: WP Nos. 31006 of 2024