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2016 Supreme(Pat) 646

IN THE HIGH COURT OF JUDICATURE AT PATNA
I.A. Ansari And Chakradhari Sharan Singh, JJ.
Arvind Kumar Thakur, Son of Devendra Nath Thakur - Petitioner
Versus
The Union of India through secretary Ministry of Road Transport & Highways Government of India - Respondent
Civil Writ Jurisdiction Case No. 12858 of 2015
Decided On : 5-04-2016

Advocates Appeared:
For the Petitioner:Mr. Ashhar Mustafa, Advocate.
For the Respondent:Mr. P.K. Verma, and Mr. Saroj Kumar Sharma, Mr. S.D. Sanjay, Addl. Solicitor General of India and Mr. Anshay Bahadur Mathur, Advocate.

The main legal point established is that the Central Government cannot levy fee under Rule 3(1) of the Rules before the completion of the section of National Highway.

Headnote:

Public Interest Litigation - National Highways Act, 1956 - Rule 3(2) of the National Highways Fee (Determination of Rates and Collection) Rules, 2008 - Two-Laning Of Muzaffarpur-Sonbarsa Section of NH-77 - Rule 3(2) - Rule 2(ba) - Central Government's power to levy fee before completion of the section of National Highway

Fact of the Case:

The petitioner filed a Public Interest Litigation challenging the collection of fee at Runni Toll Plaza on the Muzaffarpur-Sonbarsa Section of NH-77 before the completion of the road. The petitioner argued that the fee collection was unauthorized and premature without completing the construction work of the section.

Finding of the Court:

The court found that the Central Government cannot levy fee under Rule 3(1) of the Rules before the completion of the section of National Highway. The court quashed the public notice issued by the NHAI for fee collection and declared that no fee shall be levied until the completion of the project.

Issues: The main issue was whether the Central Government can levy fee before the completion of the section of National Highway under Rule 3(2) of the Rules.

Ratio Decidendi: The court interpreted Rule 3(2) and Rule 2(ba) of the Rules and concluded that the collection of fee can only commence within forty-five days of the completion of the section of National Highway. The court emphasized that completion of the project is a condition precedent for levy of fee.

Final Decision: The court quashed the public notice for fee collection and declared that no fee shall be levied until the completion of the project. The notification for fee collection shall not be given effect until the completion of the project.

JUDGMENT :

Chakradhari Sharan Singh, J.

This application, in the nature of Public Interest Litigation, under Article 226 of the Constitution of India, has been filed raising a grievance that the respondents are levying fee, at Runni Toll Plaza, on "Muzaffarpur-Sonbarsa Section of NH-77" (from Km. 2.800 to Km. 89.00), even without completing construction of the road of the said section of the National Highway.

2. The petitioner claims to be public spirited person and a member of Sitamarhi District Bar, who had functioned as the president of the said District Bar Association.

3. The writ application was, originally, filed seeking a direction from this Court restraining the respondents from collection of fee, at Runni Toll Plaza, situated at a distance of 26.09 Km. from Sitamhari at NH-77, as, according to the petitioner, decision to levy fee was unauthorized and premature without completing the construction work of the said "Section of NH-77" starting from Muzaffarpur to Sonbarsa.

4. By filing an application seeking amendment in the writ application vide I.A. No. 7688 of 2015, the petitioner has sought to challenge the public notice, dated 7.7.2015, published in a local daily newspaper "Hindustan", whereby the National Highway Authority of India (hereinafter referred to as 'the NHAI') has notified the decision to collect fee at Runni Toll Plaza from 7.7.2015.

5. Since challenge to the said public notice, dated 07.07.2015, is based on same set of facts and grounds, we consider it expedient in the interest of justice to allow the amendment as sought for. I.A. No. 7688/2015 is allowed and accordingly, the petitioner is permitted to challenge the validity of the notice, dated 7.7.2015, issued by the NHAI. Contents of I.A. No. 7688 of 2015 have, accordingly, been treated to be part of the writ application.

6. From the materials on record and the submissions advanced on behalf of the petitioner, it appears that the impugned action of the respondents of collecting fee for use of the concerned section of the road has been put to challenge mainly on the ground that the same is in breach of Rule 3(2) of the National Highways Fee (Determination of Rates and Collection) Rules, 2008 (hereinafter referred to as 'the Rules'), which, according to the petitioner, permits collection of fee only on completion of particular "section of a National Highway". An additional ground has been taken that such fee is, ordinarily, chargeable only for four or more lanes unless the average investment on two lanes exceeds Rupees one crore per kilometre and in such a case, the fee shall be 60% of the rate of fee specified under Rule 4(2) of the Rules.

7. The only question, which has arisen in the present proceeding, is as to whether it is within the competence of the Central Government to levy fee, invoking Rule 3(2) of the Rules, even before completion of the "section of National Highway", on the ground of part completion of the "section" of the said National Highway.

8. The Rules have been, admittedly, framed in exercise of powers conferred on the Central Government under Section 9 of the National Highways Act, 1956 (hereinafter referred to as 'the Act') for collection of fee for use of "sections of the National Highways, permanent bridges, bypasses and tunnels".

9. Rule 3 of the said Rules, interpretation whereof is crucial for the present application, is being extracted herein-below:

"Levy of fee.-(1) The Central Government may by notification, levy fee for use of any section of national highway, permanent bridge, bypass or tunnel forming part of the national highway, as the case may be, in accordance with the provisions of these rules.

Provided that the Central Government may, by notification, exempt any section of national highway, permanent bridge, bypass or tunnel constructed through a public funded project from levy of such fee or part thereof, and subject to such conditions as may be specified in that notification.

(2) The collection of fee levied under sub-rule (1







































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