Punjab and Haryana High Court Upholds NHAI Toll Plaza Near Fazilka Citing Local Use

The Punjab and Haryana High Court has dismissed a petition challenging the location of a toll plaza on National Highway-07, approximately 4.75 kilometers from the municipal limits of Fazilka. A Division Bench of Justice Jasgurpreet Singh Puri and Justice Pravindra Singh Chauhan held that the toll plaza's siting was valid under the second proviso to Rule 8(1) of the National Highways Fee (Determination of Rates and Collection) Rules, 2008, as the highway section was constructed primarily for the use of local residents. The court also noted that the project was near completion and that halting it would not serve the interest of justice.

The Challenge to the Toll Plaza

Dr. Ranjana Gupta, a landowner in Fazilka district, filed the writ petition under Articles 226/227 of the Constitution. She had earlier received compensation of ₹35,43,932 in 2023 for land acquired in 2022–23 for widening NH-07. She did not challenge that acquisition. However, she objected to subsequent notifications dated 30.09.2025 and 06.03.2026 issued under Sections 3A and 3D of the National Highways Act, 1956, which acquired additional land, including two marlas of her property inadvertently built upon during earlier construction. Her primary grievance was that the toll plaza, set up at km 103+000, violated Rule 8(1) because it was within five kilometers of the municipal limits without the required decision from the executing authority.

The Legal Framework: Rule 8(1) and Its Provisos

Rule 8(1) generally bars a fee plaza within ten kilometers of municipal or town area limits. The first proviso allows the executing authority, for reasons recorded in writing, to locate a plaza between five and ten kilometers. The second proviso, which operates independently, permits a plaza within five kilometers—or even within municipal limits—where the highway section, bridge, bypass, or tunnel is constructed primarily for the use of residents of that municipal or town area. The Supreme Court in National Highways Authority of India v. Madhukar Kumar (2022) 14 SCC 661 clarified that unlike the first proviso, the second proviso does not require reasons to be recorded in writing, but a decision must be taken by the executing authority and supported by material on record.

Arguments from Both Sides

Petitioner’s Submissions

Mr. P.S. Khurana, counsel for Dr. Gupta, raised four arguments:

  1. Violation of second proviso : The toll plaza was established at 4.75 km without any decision by the executive authority, as required under the second proviso.
  2. Landlocked land : The remaining unacquired land of the petitioner (about 2 acres and 3 kanals) had become inaccessible.
  3. Lack of passage : The respondents failed to provide an adequate access road to the leftover land.
  4. Non-publication of DPR and SFC report : The Detailed Project Report and the Standing Finance Committee report were not made available to the public, rendering them illegal.

Respondents’ Submissions

Senior Advocate Chetan Mittal, appearing for NHAI, countered that the petition suffered from mis-statement and concealment of facts. He pointed out that the toll plaza location at km 103+000 was fixed from the very beginning in the 2022 DPR and SFC report, which the petitioner never challenged. The subsequent notifications merely rectified an inadvertent encroachment on two marlas of the petitioner's land. Relying on the Madhukar Kumar judgment, he argued that while a separate decision was not on record, the pleadings and the reply to the petitioner’s legal notice demonstrated that the highway section was primarily for local residents. He also stated, on instructions, that NHAI would provide a 20-meter open space for access to the petitioner’s remaining land.

Court’s Reasoning on the Second Proviso

The Bench analyzed the second proviso in light of the Supreme Court’s ruling. It noted that the toll plaza was admittedly 4.75 km from the municipal limits, bringing it squarely within the second proviso’s ambit. The decision to locate the plaza was taken in 2022–23 through the DPR and SFC report—both prepared or approved by the executing authority (NHAI). Although no separate order recording reasons was placed on record, the court found that the material available—including NHAI’s reply dated 04.08.2025 to the petitioner’s legal notice and the pleadings in the case—sufficiently demonstrated that the highway section, which includes a greenfield bypass with multiple underpasses, bridges, and a trumpet interchange, was intended primarily for the use of Fazilka’s residents.

The court emphasized that the second proviso does not require reasons to be recorded in writing, and even in the absence of a separate decision, the court can look at the material and pleadings to infer the requisite application of mind. It quoted the Supreme Court’s observation: “To show application of mind, there must be material. Even in the absence of reasons, recorded as such, there must be proper pleadings with materials, unless facts are not in dispute.”

Access and Other Grievances

On the petitioner’s complaint about the remaining land becoming landlocked, the court noted NHAI’s assurance to provide a 20-meter open space. The Bench directed that if the petitioner is still dissatisfied, she may move an application under Sections 28 and 29 of the Control of National Highways (Land and Traffic) Act, 2002, and the competent authority shall decide it within three months.

Regarding the two marlas of land inadvertently built upon, the court observed that the subsequent notifications had acquired that land, and an award had been passed, thereby curing the earlier defect.

As for the challenge to the DPR and SFC report, the court held that there was no legal mandate requiring their publication, and the petitioner had not challenged them when the original acquisition took place. An application for amendment to challenge those documents was also dismissed as belated.

The Final Order

Dismissing the writ petition, the court vacated the interim order dated 22.05.2026. It concluded:

“We are of considered view that it would not be in the interest of justice to halt the entire process as the project is admittedly for the development of the nation and the acquisition was made in exercise of the sovereign function of the State. We are, therefore, satisfied that based upon the material placed on record either by way of pleadings or by way of Annexure R-2/8, the requirement of the second proviso to Rule 8(1) stands substantially complied with.”

The decision reinforces the principle that the second proviso to Rule 8(1) can be satisfied through pleadings and contemporaneous material, even without a formally recorded decision, as long as the highway section is demonstrably for the benefit of local residents.