NHAI Can't Collect Toll From Users Without Maintaining Highway Properly: Madras High Court

The bench of Justice SM Subramaniam and Justice AD Maria Clete thus halted the collection of toll in the Madurai-Tuticorin highway, till the roads are properly maintained by the authority as per the standards prescribed under the National Highways Authority of India Act.

“….the National Highways Authority of India is under obligation to maintain the highways properly and thereafter, collect toll fee from the road users. Instead, they are maintaining the highway road in a bad condition. Therefore, collection of toll fee in Madurai – Tuticorin National Highways is impermissible and the road users are entitled for a good conditioned National Highways and then alone they are liable to pay toll fee as prescribed by the authority concerned,” the court said.

"In view of the above factum, the respondents 1 to 4 (NHAI) are directed not to collect toll fee from the citizens / road users, who are travelling from Madurai to Tuticorin or from Tuticorin to Madurai till such time, the highways road is relaid or maintained as per the standards prescribed under the National Highways Authority of India Act, 1988. However, it is made clear that after the highway road is maintained in a good condition as per the standards prescribed under the said Act, the National Highways Authority of India is at liberty to collect toll fee from the road users," the court added. 

The court was hearing a petition filed by V Balakrishnan, seeking direction to the NHAI to take necessary action against the Director, Madurai-Tuticorin Expressway Ltd, for mismanagement in allocation of funds planting saplings in the highway.

Balakrishnan submitted that the Director had failed to maintain the highway as per the standards prescribed under the Act, following which, the contract between him and NHAI had been terminated. He also argued that the NHAI could not collect toll fee from road users till such time the highway is maintained as per the standards prescribed under the Act, and the Rules and Schemes framed thereunder.

The NHAI, on the other hand, questioned the maintainability of the petition. It was argued that the relief sought for is contractual in nature relating to performance and alleged breach of the concession agreement. It was argued that the petitioner, having no privity to the contract, could not seek the relief, especially since the arbitration proceedings between the parties was pending.

The court however, rejected these reasons. The court said that Balakrishnan was a road user and was paying the toll fee despite it being in a bad condition. The court also added that pendency of an arbitration proceeding was not a ground to reject the petition, as NHAI was obliged to maintain the highway properly.

Thus, noting that the road users were entitled to good conditioned National Highways and then pay tolls, the court directed NHAI to not collect toll fee till such time the roads are maintained properly.

Counsel for the Petitioner: Mr. S. Vanchinathan

Counsel for the Respondent: Mr. B. Naveen Kumar for Mr. Su. Srinivasan Standing Counsel for NHAI, Ms. Lakshmi G, opinathan for Mr. C. Sasikumar

Case Title: V Balakrishnan v. The General Manager (T) and others

Citation: 2025 LiveLaw (Mad) 189

Case No: W.P.(MD) No.3996 of 2025