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2011 Supreme(Mad) 2061

Madurai Bench of Madras High Court
K. SUGUNA & A. ARUMUGHASWAMY
Virudhunagar District Bus Owners Association, Rep by its Secretary & Another
Versus
The Government of Tamil Nadu, Rep by its Secretary & Another
W.A.(MD).No.41 of 2011 & W.A.(MD).No.42 of 2011 & M.P.Nos.1 & 1 of 2011
Decided On :Decided on: 09-04-2011

Advocates Appeared:
For the Appellants:M. Palani, Advocate.
For the Respondents: R1 -R. Janakiramulu, Special Government Pleader, R2 - M. Ravishankar, Standing Counsel.

Headnote:

Toll Fee - Jurisdictional Dispute - Indian Tolls Act 1851 - Section 2, G.O.Ms.No.149, Municipal Administration and Water Supply (Mc.II) Department, dated 23.10.2000 - G.O.Ms.No.29, Municipal Administration and Water Supply (MN-2), Department, dated 31.01.2011 - The court discussed the provisions of the Indian Tolls Act 1851, the Government Orders authorizing toll fee collection, and the requirement for prior approval from the Government for toll fee enhancement.

Fact of the Case:

The appellants, stage carriage operators, challenged the collection of toll fee by the second respondent Corporation without proper authorization. The learned Single Judge dismissed the Writ Petitions on the ground of maintainability, leading to the filing of the present Writ Appeals.

Finding of the Court:

The court found that the Writ Petitions were maintainable and the second respondent Corporation had been collecting toll fee without proper authority of law after the expiry of the initial notification period. However, the court allowed the Writ Appeals to the extent that the Corporation was permitted to collect the toll fee as on 31.10.2005 with an 8% increase until further orders from the Government.

Issues: The issues revolved around the maintainability of the Writ Petitions, the authority of the second respondent Corporation to collect toll fee, and the requirement for prior approval from the Government for toll fee enhancement.

Ratio Decidendi: The court held that the Writ Petitions were maintainable, the Corporation had been collecting toll fee without proper authority of law after the expiry of the initial notification period, and the Corporation was permitted to collect the toll fee as on 31.10.2005 with an 8% increase until further orders from the Government.

Final Decision: The order of the learned Single Judge was set aside, and the Writ Appeals were allowed to the extent indicated above. No costs were awarded, and connected Miscellaneous Petitions were closed.

Judgment :-

[Judgment of the Court was delivered BY A.ARUMUGHASWAMY, J]

1. These Writ Appeals are directed against the Common Order dated 03.02.2010 made in W.P. (MD).Nos.3161 and 3162 of 2010.

2. Thefacts leading to the filing of the present Writ Appeals are as follows:-

(i). The members of the appellants association are stage carriage operators and they are operating small buses either within the District of Virudhunagar or on inter - District route in between Virudhunagar District and Madurai District. The Government had established a new Bus Stand at Mattuthavani, which is situated at a distance of ten Kilometers away from the Central Bus Stand. Thereafter, in order to ease the traffic congestion within the city, an inner ring road was formed on the northern side of National Highway.

(ii). In pursuance of the Government Order issued in G.O.Ms.No.149, Municipal Administration and Water Supply (Mc.II) Department, dated 23.10.2000, the ring road was opened for public and vehicular operation from 01.11.2000 and toll fee was also fixed for using the ring road. The amount incurred for laying down and built up the ring road is stated to be Rs.47.35 crores. Therefore, in terms of the Indian Tolls Act, 1851, the second respondent Corporation was permitted to collect the toll fee. The grievance of the appellants association is that no notification is issued by the first respondent authorizing the second respondent - Corporation to collect the toll fee on the expiry of five years period of notification.

(iii). Aggrieved over the same, the appellants association had filed W.P.(MD).No.3161 and 3162 of 2010 seeking for a Writ of Mandamus forbearing the second respondent Corporation from collecting or demanding the toll fee in terms of the notification, dated 23.10.2000 passed by the first respondent in G.O.Ms.No.149, Municipal Administration and Water Supply (Mc.II) Department, for the stage carriages of the members of the appellants association, who are using inner ring road in Madurai City while operating on their respective routes and further direct the second respondent Corporation to return the toll fee collected from the members of the appellants association from 01.11.2005 to till date with interest accrued thereon.

(iv). A learned Single Judge of this Court, by common order dated 03.12.2010, accepting the arguments advanced by the learned Standing Counsel appearing for the second respondent Corporation, had dismissed the said Writ Petitions on the ground of maintainability of Writ Petitions.

(v). Challenging the said Common Order dated 03.12.2010, the appellants association have come forward with the present Writ Appeals.

3. At the outset, the learned Standing Counsel appearing for the second respondent Corporation has raised a preliminary objection regarding locus standi of the appellants association to file Writ Petitions and it is for the individual operators to challenge the notification, if so advised. In support of his contention, the learned Standing Counsel has relied on the Judgments of the Honble Supreme Court and a Division Bench of this Court in Mahinder Kumar Gupta and others vs. Union of India reported in 1995 (1) SCC 85.

4. The second contention of the learned Standing Counsel is that as per clause 10(a) of the Government Order dated 23.10.2000, the second respondent Corporation is entitled to collect toll fee and the collection of toll fee would be in force for 15 years with an annual rate of 8% for the first five years. Based on the above submissions, the learned Standing Counsel for the second respondent Corporation has prayed for dismissal of the Writ Appeals.

5. The vehement contention of the learned counsel appearing for the appellants association is that the second respondent Madurai Corporation is not entitled to collect toll fee charges, after the expiry of the period of notification, under which, it was conferred with the second respondent Madurai Corporation to collect toll fee. The second respon





















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