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2025 Supreme(Online)(Mad) 66091

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, A.D.MARIA CLETE, JJ
T.S.R.Venkatraman – Appellant
Versus
The Union of India – Respondent
W.P.(MD)No.17492 of 2015



Advocates:
For the Appellants/Petitioners: Mr.T.S.R.Venkataramana
For the Respondents: Mr.AR.L.Sundaresan, Mr.K.Govindarajan, C.Nandagopal, Mr.V.Om Prakash

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.

Headnote:(A) Constitution of India - Article 226 - National Highway Fee (Determination of Rate and Collection) Rules, 2008 - Petitioner's challenge on grounds of ultra vires the Constitution due to alleged excessive delegation of powers - The argument rejected as the collection of fees on National Highways is constitutionally valid under the National Highways Act, 1956, supported by Union legislative powers. (Paras 3, 11, 15)

(B) Legislative Competence - The power of the Union to legislate on toll collection on National Highways, supported by Entries 23 and 96 in the Union List and harmoniously construed with Article 246 - The State's power on local tolls does not conflict with Union powers. (Paras 7, 10, 12)

Facts of the case:
The petitioner argued that toll collection should rest with the State, citing historical context and prior laws. The Constitutionality of Rule 8 was questioned but found to be valid based on Union legislative authority.

Findings of Court:
The court upheld the validity of National Highway Fee collection as it falls within the Union's legislative ambit, rejecting the petitioner’s claims of unconstitutionality.

Issues: Whether the collection of fees by the National Highways Authority is constitutionally valid and if Rule 8 is ultra vires.

Ratio Decidendi: The court established that both the Union and State have designated authorities and that tolls on National Highways are to be regulated by the Union under the National Highways Act, reaffirming previously validated rulings on the issue.

Result: Writ petition dismissed.

Table of Content
1. petitioner seeks declaration against rule 8. (Para 1 , 2)
2. citations supporting fee collection regulations. (Para 4 , 5)
3. union vs. state legislative powers discussed. (Para 6 , 10 , 11)
4. court confirms validity of toll fees under union jurisdiction. (Para 12 , 15)
5. conclusion where the writ petition is dismissed. (Para 16)

ORDER

(Order of the Court was made by S.M.SUBRAMANIAM, J.)

This writ of declaration has been instituted to declare Rule 8 of the National Highway Fee (Determination of Rate and Collection) Rules, 2008 as ultra virus to the Constitution of India and null and void.

2. The petitioner is an Ex-MLA and a practising Lawyer instituted the writ petition for declaration as stated above. The petitioner-in-person articulated his case mainly on the premise that collection of Toll through Toll Plaza is the exclusive power vest with the "State". Therefore, the present set of collection of fee through Toll Plaza by the National Highways Authority of India or through its agency is ultra virus to the Constitution of India .

3. To substantiate the arguments, the petitioner-in-person reminded the history regarding the development and collection of 'Toll' from pre-independence and post-independence era and certain enactments repealed were relied on by the petitioner for example, Indian Tolls Act 1851, the second Indian Tolls Act,1864 and the third Indian Toll Act 1888. The petitioner would contend that when the history reveals collection of Toll vest with the State, Municipalities and Panchayats, the present system of collection of fee by the National Highways Authority is unknown and therefore, the impugned rule made in exercise of the powers conferred under the National Highways Act is to be declared as unconstitutional. It is contended that collection of fee in Toll Plaza are exorbitant. The distance criteria are not strictly followed. The agents, concessionaire are exceeding the terms and conditions of their agreement and for all these reasons, the power to collect fee by the National Highway Authorities under the impugned Rule 8 is to be struck down.

4. In support of the contentions, the petitioner-in-person relied on the following judgments:

(i) Union of India v. Rajendra N.Shah and another reported in AIR Online 2021 SC 362 "

(ii) Special Reference No.1 of 2001 reported in (2004) 3 S.C.R

(iii) Synthetics and Chemicals Ltd., etc., v. State of U.P. and others reported in AIR 1990 SC 1927

(iv) Hansraj and Sons vs. State of Jammu and Kashmir and others reported in AIR 2002 SC 2692

(v) State of U.P., vs. Devi Dayal Singh reported in (2000) 3 Supreme Court Cases 5

(vi) Ahmedabad Urban Development Authority vs. Sharad Kumar Jayantikumar Pasawalla and ors reported in AIR 1962 SC 1044

(vii) Government of NCT of Delhi v. Union of India reported in AIR Online 2023 SC 449;"

5. The learned Additional Solicitor General of India Mr.AR.L.Sundaresan would oppose by stating that the issues raised by the petitioner is no more res integra. The Constitutional validity of the provisions of the National Highways Act, 1956 and the Rules framed thereunder were tested before the Courts and the Division Bench of the High Court of Madras in the case of G.Jeyakumar vs. Citizens Voice Club in W.P.Nos.20332 of 1998 etc., batch, validated Rule 8(A) of the National Highways Act vide judgment dated 09.01.2008. Further, Rule 8 was tested by the Apex Court in the case of National Highways Authority of India and others vs. Madhukar Kumar and others reported in(2022) 14 SCC 661. In view of the above judgments, the writ petition is to be rejected.

6. It is necessary to consider the provisions of the National Highways Act and the powers of the Central Government to collect fee in respect of National Highways declared under enactments. It is a settled position of law that both the Union list and the State list operate independently. Thus, the powers of the Union whether traceable under the Union list is the point to be considered. Schedule 7 L

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