IN THE HIGH COURT OF DELHI AT NEW DELHI
Satish Chandra Sharma, Subramonium Prasad, JJ.
Rakesh Agrawal – Appellant
Versus
National Highway Authority of India & Anr. – Respondents
W.P.(C) 7461 of 2023 & CM APPL. 28997 of 2023
Decided On : 04-07-2023
NHAI - National Highways Act - 1956, National Highways Authority of India Act - 1988, National Highways Fees (Determination of Rates and Collection) Rules - 2008 - Section 7, 9, 14, 16 - The court discussed the provisions of the National Highways Act, 1956, National Highways Authority of India Act, 1988, and the 2008 Rules. It highlighted the power of the Central Government to levy fees for services or benefits rendered on national highways, the responsibility for development and maintenance of national highways, and the functions of the National Highways Authority of India. The court emphasized that the contracts entered into by NHAI for collecting toll were not violative of the 2008 Rules and were in accordance with the legal framework.
Fact of the Case:
The petitioner filed a PIL challenging the process of inviting tenders by NHAI for toll collection, alleging non-compliance with Rule 7 of the 2008 Rules and resulting in huge losses to the Central Government.
Finding of the Court:
The court found the PIL to be devoid of merits and dismissed it, stating that the contracts entered into by NHAI for toll collection were not violative of the 2008 Rules.
Issues: The issues revolved around the compliance with Rule 7 of the 2008 Rules in the process of inviting tenders for toll collection by NHAI and the alleged losses suffered by the Central Government.
Ratio Decidendi: The court emphasized that the contracts entered into by NHAI for collecting toll were not violative of the 2008 Rules and were in accordance with the legal framework.
Final Decision: The present PIL was dismissed by the court.
JUDGMENT
1. The instant writ petition under Article 226 of the Constitution of India has been filed by the Petitioner as a Public Interest Litigation (PIL) with the following prayers:
"1. To issue a Writ/Order/Direction in nature of Writ of Mandamus or any other appropriate Writ/Order/Direction, directing the Respondent to amend their contract forthwith and make them compliant with Rule 7 of National Highways Fees (Determination of Rates and Collection) Rules, 2008.
2. Issue a Writ/Order/Direction in nature of Writ of Mandamus or any other appropriate Writ/Order/Direction commanding and directing the Respondents to recover the additional money which has been earned by the Concessioners as a result of non-compliance of Rule 7 of National Highways Fees (Determination of Rates and Collection) Rules, 2008 in the Respondent No. 1=s Contract.
3. Issue a Writ/Order/Direction in nature of Writ of Mandamus or any other appropriate Writ/Order/Direction commanding and directing investigation by a specialized agency as to the persons who are benefited and/or are responsible for the non compliance of Rule 7 of National Highways Fees (Determination of Rates and Collection) Rules, 2008, which has resulted in Huge Loss to the exchequer and corresponding benefit to the Concessioners.
4. Pass such other and further orders as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case and in the interest of Justice."
2. It is stated that the Petitioner is a regular commuter by car on national highways and thus he has interest in the present matter. It is stated in the petition that since a substantial part of the amount collected by way of toll is being given to the toll operators, huge losses are being suffered by National Highways Authority of India/Respondent No.1 (hereinafter referred to as `NHAI`) which has resulted in deterioration of the quality of services rendered by NHAI and the same has affected and will affect the growth of National Highways in the country.
3. The submission of the Petitioner is that Section 7 of the National Highways Act, 1956 confers power on the Central Government for levying fees and collection in the manner as laid down in the Rules in this regard. It is stated that Section 9 of the National Highways Act, 1956 confers power on the Central Government to frame Rules and in exercise of powers conferred under Section 9 of the National Highways Act, 1956, the National Highways Fees (Determination of Rates and Collection) Rules, 2008 (hereinafter referred to as `2008 Rules`) have been framed. It is stated that Rule 3 of the 2008 Rules prescribes that 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.
4. It is stated that Rule 7 of the 2008 Rules prescribes that in case of public funded projects, the fee collected under the provisions of these rules by every executing authority shall be remitted to the Central Government. It is stated that National Highways Authorities of India Act, 1988 (hereinafter referred to as `NHAI Act, 1988`) was enacted for the development and maintenance of national highways whose management and operation was vested in the Central Government. It is stated that Section 16 of the NHAI Act, 1988 lays down the functions of the NHAI which is to develop, maintain and manage the national highways and Section 16(2)(k) mandates that the authority must collect fees on behalf of the Central Government for services or benefits rendered under Section 7 of the National Highways Act, 1956, as amended from time to time, and such other fees on behalf of the State Governments on such terms and conditions as may be specified by such State Governments. It is the submission of the Petitioner that all the fees collected by the NHAI has to be remitted to the Central Government.
5. It is stated that Respondent No.1/NHAI calls for tenders for collection of toll on toll plaza
The court affirmed the Union's authority to collect fees for National Highways under the National Highways Act, ruling that state powers do not impede this legislative competence.
it appropriate to exercise writ jurisdiction under Article 226 in the aforesaid peculiar circumstances for the limited purpose of interim protection while relegating the parties to arbitration.
The power to grant exemption from toll fee lies with the Central Government and not with the court. The location of the Toll Plaza and the manner of toll fee collection for local vehicles had already....
Maintenance of highways is a prerequisite for collecting toll fees; road users have the right to demand proper maintenance regardless of contractual relationships.
Toll plaza's location violated Fee Rules by restricting local residents' movement and imposing unjust fees for accessing essential services.
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