JUDGMENT

1. Leave granted. The challenge in this appeal is against the following operative directions passed by the High Court of Madras in the Writ Petition filed by the Respondent No. 1:

"(iii) Writ Petition (MD) Nos. 13906 of 2012 and 14535 of 2012 are disposed of directing the National Highways Authority of India to shift the Kappalur Toll Plaza, from its present location, to a place near the interjection where N.H. 7 and N.H. 208 bifurcates, so that there is no violation of the second proviso to Rule 8(1) or at least to ensure that persons who use a small section of N.H. 7 for the purpose of proceeding to N.H. 208 are not charged the same rate of toll fee as charged for those taking N.H. 7 and

(iv) The National Highways Authority of India shall take a decision on the above lines within a period of four weeks from the date of receipt of a copy of this order. Until then the Respondents shall not collect toll fee from the vehicles proceeding to N.H. 208. This can be done by opening a check post near the junction where the N.H. 7 and N.H. 208 parts and refunding at that check post, the money collected from vehicles taking N.H. 208. There will be no impediment for collecting toll fee from vehicles proceeding in N.H. 7 itself. No costs. Consequently, connected miscellaneous petitions are closed."

2. The High Court has issued the aforesaid directions on recording a finding that the Toll Plaza in question had been located contrary to the provisions of Rule 8 of the National Highways Fee (Determination of Rates and Collection) Rules, 2008 (for the sake of convenience, hereinafter referred to as "the said Rules") and is not saved by the provisions contained in the second proviso to the said Rules. The second ground on which the High Court had thought it proper to issue the aforesaid directions is that the persons of the neighbourhood towns who use N.H. 7 for the purposes of accessing N.H. 208 are being made to pay toll despite the fact that they use only about 7 kilometers of the N.H. 7.

3. Rule 8 of the said Rules may be conveniently extracted herein below.

"8. Location of toll plaza: (1) The executing authority or the concessionaire, as the case may be, shall establish a toll plaza beyond a distance often kilometers from a municipal or local town area limits: Provided that the executing authority may, for reasons to be recorded in writing, locate or allow the concessionaire to locate atoll plaza within a distance often kilometers of such municipal or local town area limits, but in no case within five kilometers of such municipal or local town area limits:

Provided further that where a section of the national highway, permanent bridge, by-pass or tunnel, as the case may be, is constructed within the municipal or town area limits or within five kilometers from such limits, primarily for use of the residents of such municipal or town area, the toll plaza may be established within the municipal or town area limits or within a distance of five kilometers from such limits.

(2) Any other toll plaza on the same section of national highway and in the same direction shall not be established within a distance of sixty kilometers;

Provided that where the executing authority deems necessary, it may for reasons to be recorded in writing, establish or allow the concessionaire to establish another toll plaza within a distance of sixty kilometers:

Provided further that a toll plaza may be established within a distance of sixty kilometers from another toll plaza if such toll plaza is for collection of fee for a permanent bridge, by-pass or tunnel."

4. Under the second proviso to Rule 8(1), it is evident that a toll plaza may be established within the municipal or town area limits or within a distance of five kilometers from such limits provided the concerned section of the national highway is intended primarily for the use of the residents of such municipal or town area. In this regard, the High Court had recorded a finding that there was no averment in the