The absence of FASTag systems at toll plazas absolves the toll collector from penalties for non-collection of tolls, and compensation for losses due to Force Majeure events must be determined by the authorities.

JUDGMENT :

RAJESH KUMAR, J.

The present writ petition has been filed for the following relief(s):

(i) For issuance of an appropriate writ/order/direction,including Writ of Mandamus, directing Respondent- authorities to pay admitted due and payable amount in respect of Agreement No. 01 RFP of 2023-24 dated 15th September, 2023 (Annexure-3) entered by and between Petitioner and Respondents, after taking into consideration Force Majeure claim of Petitioner in terms of Clause 25 of the Agreement.

(ii) For issuance of further appropriate writ/order/direction, including Writ of Declaration, declaring that action of Respondent on one hand in not making payment of admitted due amount and on the other hand unilaterally extending the tenure of the Agreement is void ab initio; and status of Petitioner after expiry of the tenure of the Agreement is only that of an Agent of Respondent- authority.

2. Arguments of the petitioner on the factual matrix reads as under:

“1. Respondent-Executive Engineer, Road Division, Saraikela published a Notice Inviting Tender dated 03.01.2023 for appointment of User Fee Collection Agency in respect of Adityapur-Kandra Road Section (0.000 to 15,100), 2. Petitioner was declared as the highest bidder and vide Letter No. 798 dated 07.08.2023, it was appointed as User Fee Collection Agency for Kandra Junction Toll Plaza at Adityapur-Kandra Road Section of State Highway No.5.

3. An agreement dated 15th September, 2003 was entered into between Petitioner and Respondent-Executive Engineer, wherein the contract entered with the Petitioner was for a period of two years and was expiring on 03.10.2025.

4. Despite the fact that agreement was expiring on 03.10.2025 and Petitioner, on several occasions, wrote to Executive Engineer for taking over the Toll Plaza, Respondent-Executive Engineer, vide Letter No. 1089 dated 27.09.2025, extended the tenure of the agreement up to 03.04.2026.

5. Petitioner objected to said unilateral extension of tenure, which was contrary to Clause 2(ii) of the Agreement dated 15th September, 2023, which reads as under "-

"(ii) The period of contract shall be Two years. However, in case of urgency, the Authority reserves the right to increase the contract period mutually agreed upon but limited to 6 months."

6. It is an admitted fact that in Adityapur-Kandra Section of State Highway No. 5, there is no facility installed for collection of toll through FASTag.

7. The Toll Plaza, which was handed-over to Petitioner, was not having FASTag system which is compulsory as per Ministry of Road Transport and Highways and Petitioner, immediately upon taking over of Toll Plaza, requested Respondent-State of Jharkhand vide its Letter dated 17th October, 2023, to install FASTag system for toll collection.

8. Again on 25th October, 2023, Petitioner filed reminder representation for installation of FASTag system and it even obtained a tentative quotation for installation of FASTag from a vendor, costing about Rs. 72.00 Lakhs, and requested Respondent-authorities to grant necessary approval of installation of FASTag, but no approval was granted.

9. Ministry of Road Transport and Highways, vide Notification dated 2nd November, 2017 issued under Central Motor Vehicles Rules, 1989, amended Rule 138A of Central Motor Vehicles Rules, 1989, which reads as under:-

"138 A. Fitment of FASTag,-- Categories M and N motor vehicles sold on and after the 1^st December, 2017, shall be fitted with FASTag as may be specified by the Central Government, from time to time, by the manufact