The Supreme Court has ruled that commuters cannot be compelled to pay tolls on highways that are incomplete, riddled with potholes, or rendered impassable by traffic snarls, upholding a Kerala High Court order suspending toll collection at the Paliyekkara plaza in Thrissur district.
A bench led by Chief Justice of India Bhushan R Gavai and comprising Justices K Vinod Chandran and NV Anjaria dismissed appeals filed by the National Highways Authority of India (NHAI) and the concessionaire, prioritising citizens’ welfare over financial losses from suspended toll collection.
“In the meanwhile, let the citizens be free to move on the roads, for use of which they have already paid taxes, without further payment to navigate the gutters and pot-holes, symbols of inefficiency,” the bench said, endorsing the High Court’s 6 August order.
The Kerala High Court had ruled that any failure by NHAI or its agents to ensure unhindered, safe and regulated road access constitutes a breach of public expectations and undermines the toll regime’s foundation. “We cannot but agree with the reasoning of the High Court,” SC held on Tuesday, reinforcing that the public’s obligation to pay statutory user fees is tied to proper road access.
The bench rejected NHAI’s contention that traffic snarls were limited to “black spots” where underpass construction was underway. Despite assurances that the main carriageway remained functional, the court highlighted that even a five-kilometre disruption in a 65-kilometre stretch creates a cascading effect, bringing traffic to a standstill for hours.
{{/usCountry}}The bench rejected NHAI’s contention that traffic snarls were limited to “black spots” where underpass construction was underway. Despite assurances that the main carriageway remained functional, the court highlighted that even a five-kilometre disruption in a 65-kilometre stretch creates a cascading effect, bringing traffic to a standstill for hours.
{{/usCountry}}Rejecting NHAI’s plea for proportionate toll reduction, the court said: “Even if only 5km at the black spots in the 65km stretch is affected, the cascading effect compounds the hours to traverse the entire stretch.”
The bench noted that the Edappally–Mannuthy section was paralysed for 12 hours last weekend. “Why should a person pay ₹150 if it takes 12 hours to traverse a road meant to be covered in one?” the court remarked.
Senior advocates Shyam Divan, for the concessionaire, and Solicitor General Tushar Mehta, for NHAI, argued that toll revenues are crucial for maintaining the road network and that suspending tolls would cripple daily revenue of nearly ₹49 lakh.
But the court criticised both NHAI and the concessionaire for ignoring repeated Kerala High Court directions to remedy the situation. It questioned why NHAI had outsourced work at black spots to a third-party contractor without coordinating responsibilities, noting that the absence of accountability had worsened the crisis.
The Supreme Court clarified that while the Kerala High Court’s observation on NHAI’s liability for the concessionaire’s losses was not “absolute liability,” disputes between parties could be pursued before appropriate forums. The bench asked the Kerala High Court to continue monitoring and implead the contractor responsible for black spots, M/s PST Engineering and Constructions, to ensure accountability.
The toll suspension will remain for four weeks or until smooth traffic is restored, with NHAI or the concessionaire able to seek earlier lifting once conditions improve.
The ruling affirms the Kerala High Court’s order that castigated NHAI for “total apathy” and held that the authority could not demand user fees while breaching public trust with road users. Despite reminders since February 2025, the situation remained unaddressed. “We are not convinced that any interference can be made to the order, especially when the arguments of NHAI and the concessionaire gloss over the citizen-centric approach the High Court took,” the bench concluded.