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2022 Supreme(Mad) 599

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
R. Suresh Kumar, J.
Madurai District Private Bus Owners Association Rep. by its Secretary – Petitioner
Versus
Union of India Rep. by its Secretary Ministry of Road, Transport and Highways, New Delhi & Others – Respondents
W.P.(MD)Nos. 15449, 15465, 15470, 15474, 18440 of 2020, 4252, 4253, 4254, 8644, 8645, & 8646 of 2010, 18616, 18617, 18618, 18619, 18620 & 18622 of 2013, 4886, 4887, 4893 of 2014, 5118, 5121, 6527 of 2021 and connected miscellaneous petitions W.P.(MD).No.15449 of 2020
Decided On : 06-07-2022

Advocates:
Advocate Appeared:
For the Petitioner:M. Palani, Advocate.
For the Respondent: R. Sankaranarayanan, Additional Solicitor General assisted by S. Sivakumar, Standing counsel, C. Arul Vadivel @ Sekar, Standing counsel.

Headnote:(A) National Highways Act, 1956 - Sections 2, 7, 8-A, and 9 - National Highways Fee (Determination of Rates and Collection) Rules, 2008 - User fee collection challenged - Many petitions declared infructuous due to superseded notifications - Main challenge concerns the legality of user fee rates and their application to stage carriage operators, arguing fees are exorbitant and arbitrary in nature for the short distances covered (Paras 1, 10, 84, 118).

(B) Legal Principle - The legal distinction between a fee and tax is eroded; fees can be compulsory and still extracted for general benefits, while a lack of direct quid pro quo does not invalidate a fee (Paras 102, 111).

Facts of the case:
Petitioner association represents stage carriage bus operators in Madurai District, challenging various user fee notifications issued by the Central Government that they argue impose exorbitant charges for minimal highway usage (Paras 15, 20).

Findings of Court:
The court dismissed most writ petitions as infructuous, upheld validity of notifications but acknowledged higher usage needs for stage carriage operators and suggested a modification to allow appropriate monthly pass rates based on their permitted trips (Paras 118, 119).

Issues: The main issues were related to the validity of user fee notifications and the adequacy of the monthly pass provisions under the current rules compared to previous concessions (Paras 7, 71, 112).

Ratio Decidendi: The court emphasized that the National Highways Act allows for regulation through the applicable rules, including the participation of concessionaires, and affirmed the necessity for modifications to better accommodate public transportation needs (Paras 114, 116).

Result: Writ petitions dismissed as infructuous, with directions for potential modification of user fee structures for stage carriage operators.

Table of Content
1. writ petitions challenge multiple notifications. (Para 1 , 2)
2. some writ petitions deemed infructuous. (Para 3 , 4 , 5 , 6 , 8 , 9)
3. petitioners argue against user fees based on frequent highway use. (Para 12 , 18 , 20 , 22 , 25)
4. argument relating to distinction between fee and tax. (Para 36 , 42 , 46 , 90)
5. court acknowledges need for fee modification for public buses. (Para 80 , 84 , 112)
6. court dismisses writ petitions but allows modification of fee structure. (Para 118)

ORDER :

(Prayer in W.P.(MD).No.15449 of 2020 : Writ petition filed under Article 226 of Constitution of India praying for issuance of a Writ of Certiorarified Mandamus, calling for the records of the first respondent made in Notification bearing S.O.No.2382(E), published in the Government of India Gazette, dated 05.07.2019 by the Ministry of Road Transport and Highways, New Delhi, for collection of the user fee in respect of section Trichy – Thuvarankurichi – Melur – Madurai, which forms part of NH45B and quash the same and direct the 1st and 2nd respondents to collect the user fee, as prescribed in the notifications in respect of similar 4 way lanes Chengalpet – Tindivanam, dated 26.03.2009, Ulundurpet – Padalur, dated 24.07.2009, Padalur to Trichy, dated 26. 10.2009, which forms part of NH45 and Madurai – Aruppukottai, dated 16.06.2011 and Salem – Ulundurpet, dated 13.01.2012 on NH45B.)

In this batch of writ petitions, various notifications issued by the Government of India, Ministry of Road Transport and Highways at various point of time are under challenge, except in W.P.(MD).No.8646 of 2010, where rule 9(2) of National Highways Fee (Determination of rates and collection) Fees Rules 2008 was sought to be declared as ultra vires and unconstitutional.

2. Though number of such notifications as stated supra have been under challenge in this batch of cases, some of the notifications which were issued by the Central Government earlier, i.e., in the year 2010, 2012 and 2013 since have been superseded by subsequent notifications which are also under challenge in this batch of cases, it was brought to the notice of this Court by the learned Standing counsel appearing for the National Highways Authority of India that, 11 writ petitions, i.e., five of the year 2010 and six of the year 2013 in this batch of cases have become infructuous.

3. In order to delve into the said plea raised by the respondents, as to the issue with regard to the infructuous nature of the prayer sought for in those writ petitions, the said writ petitions with their respective prayers were verified, accordingly, the following were found out.

4. In W.P.(MD).Nos.8644 and 8645 of 2010, the notification bearing S.O.No.12(E), dated 05.01.2010 was under challenge. However, the said notification, dated 05.01.2010 was subsequently, superseded by notification bearing S.O.No.409(E), dated 13.03.2012, which reads that, this is in supersession of the notification of the Government of India in the Ministry of Road Transport and Highways, S.O.No.12(E), dated 5th January 2010, except as respects things done or omitted to be done before such supersession.

5. In view of this notification, dated 13.03.2012 in notification bearing S.O.No.409(E), the challenge made against notification bearing S.O.No.12(E), dated 05.01.2010 has become infructuous, accordingly, these writ petitions can be treated as infructuous.

6. Like that, in W.P.(MD).Nos.4252, 4253 and 4254 of 2010 are concerned, they challenge the notification bearing S.O.No.3040(E), dated 27.11.2009. However this notification also was superseded by the subsequent notification bearing S.O.No.455(E), dated 16.03.2012 which states that, this is in supersession of the notification of the Government of India in the Ministry of Road Transport and Highways in S.O.No.3040 (E), dated 27.11.2009 as respects things done or omitted to be done befo

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