2025 Supreme(Mad) 3207
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
P.VELMURUGAN, K.K.RAMAKRISHNAN, JJ.
Virudhunagar District Bus Owners Association - Appellant
Versus
The Government of Tamilnadu - Respondent
W.A(MD)Nos.1501 &1502 of 2014 and M.P(MD)Nos.1, 2 &1, 2 of 2014 and W.A(MD)Nos. 8 &9 of 2015 and M.P(MD)Nos.1& 1 of 2015 and W.P(MD)No.3514 of 2021 and C.M.P(MD)Nos.2930 of 2019, 1045 of 2021 & 2639 of 2021 and W.M.P(MD)Nos.2845 of 2021
Decided on : 14-03-2025
Advocate Appeared:
For the Appellant : Mr.M.Palani
For the Respondents: Mr.M.Sarangan, Mr.R.Baskaran, assisted by Mr.S.Vinayak
The court determined that irregular actions can be ratified, validating past toll fee collections, but declared the government’s excess utilization of funds for projects not directly related to maintenance illegal.
Headnote:(A) Indian Tolls Act, 1851 - Government Order No. 149 dated 23.10.2000 - Ratification of toll collection - Quashing of ratification order held illegal, however, refund denied. (Para 10, 12-14, 23)
(B) Jurisdiction - Toll fee collection without authority deemed illegal; however, ratification only irregular. (Para 34)
(C) Financial authority - Surplus from toll collection permitted for public projects under G.O.Ms.No.25 dated 05.02.2016 challenged and quashed. (Para 35)
Facts of the case:
The appellant association challenged the legality of toll fee collections exceeding a fixed period after government ratification, seeking refund for unauthorized collections from 2005-2010.
Findings of Court:
The ratification was ruled as irregular but not illegal and the government had discretion to reallocate surplus funds for public welfare.
Issues: Whether unauthorized toll collection constitutes illegality requiring refund, and the authority of government to ratify such collections.
Ratio Decidendi: The court found that while illegalities cannot be ratified, irregularities can; hence, toll fees collected past their authorized period cannot be refunded without fresh notification.
Result: Writ Appeals in W.A(MD)Nos.1501 and 1502 of 2014 dismissed; W.A(MD)Nos.8 and 9 of 2015 allowed. The G.O.Ms.No.25 dated 05.02.2016 was quashed, with the petitioner free to pursue refund claims legally.
| Table of Content |
|---|
| 1. challenges on toll fee ratification and refund. (Para 1 , 2 , 3 , 6) |
| 2. authority for fund utilization in public projects. (Para 4) |
| 3. retrospective authorization issues. (Para 7 , 8) |
| 4. jurisdictional boundaries in toll collection. (Para 12 , 19 , 26 , 30) |
| 5. arguments regarding excessive toll collection and public finance. (Para 18 , 22 , 34) |
JUDGMENT :
P.VELMURUGAN, J.
Virudhunagar District Bus Owners Association filed a writ petition in W.P(MD)No.6216 of 2011 and Madurai District Bus Association filed a writ petition in W.P(MD)No.6217 of 2011. Since both the writ petitions are arising out of the same cause of action, both the writ petitions were taken up together and disposed of by way of a common order. Writ petitions were filed challenging the ratification issued by the first respondent and both the writ petitions were partly allowed by the writ Court on 03.10.2014 holding that the ratification is illegal and quashed the said ratification, however denied the refund.
2. Challenging the quashing of the ratification order, the second respondent therein Madurai Corporation filed the writ appeals in W.A(MD)Nos.8 and 9 of 2015 and challenging the denial of refund, the writ petitioners have filed the writ appeals in W.A.(MD)Nos.1501 and 1502 of 2014 on the file of this Court.
3. Since all the appeals are arising out of the common judgment dated 03.10.2014, passed by the learned Single Judge in the above said writ petitions in W.P(MD)Nos.6216 & 6217 of 2011, all the appeals have been taken up together and disposed of by way of this common judgment.
4. In the meanwhile, pending writ appeals, the Government passed a Government Order in G.O.Ms.No.25 dated 05.02.2016 to transfer the surplus amount of Rs.36 Crores available in ESCROW Account of inner Ring Road toll Collection into the Corporation Revenue Account by giving one time relaxation of the betterment of basic amenities to the added areas and completion of remaining 20% under Ground Drainage Works. Challenging the same, appellant in W.A(MD)No.1501 of 2014 has filed the present writ petition in W.P(MD)No.3514 of 2021 to quash the G.O.Ms.No.25 dated 05.02.2016. The same is also the subject matter of the inner ring road. Therefore, the writ petition is also tagged along with these writ appeals and heard together and disposed of by this common judgment.
5. For the sake of convenience, the parties are referred to as per their ranking in the earlier writ petitions.
6. The brief facts of case:
The second respondent decided to have an integrated bus stand and consequently, a new bus stand was established in the place of Mattuthavani. It is situated 10 km from the Central Bus stand. If one goes through the interior part of the City and further to ease the traffic congestion, the inner ring road had been formed on the northern side of Madurai and that ring road connects Kanniyakumari National Highway ie., NH 47 at a place called Kappalurpirivu. As far as the Aruppukkottai sector is concerned, the same is connected at a place called Mandela Nagar Pirivu NH 45B. Therefore, the buses which are coming from Aruppukkottai sector and Thirumangalam Sector instead of going inside the City to reach Mattuthavani Bus stand, are directed to via ring road. In case of buses plying on Thirumangalam sector, they have to take diversion from Kappalurpirivu which is near Thirumangalam and in case of Aruppukkottai sector, they have to take diversion from Mandela Nagar Pirivu to reach Mattuthavani sector. This ring road was opened for public and vehicular operation from 01.11.2000 in pursuant to G.O.Ms.No.149 dated 23.10.2000. For using the ring road a toll fee is also fixed thereunder.
7. In terms of the said notification, in respect of the stage carriages that are plying in between the Madurai and Aruppukkottai sector, the fee was initially fixed at the rate of 40 per single operation and in case where an operator operates 3 or more singles per day, it was fixed at the rate of Rs120/- per day which i