No toll for poor highways or traffic chaos: HC orders, reminding NHAI its relationship with public is built on trust

The Kerala High Court on Wednesday ruled that the National Highways Authority of India (NHAI) or its agents cannot collect tolls or user fees if they fail to provide safe, unhindered, and regulated access to the roads.

The decision came from a division bench of Justices A Muhamed Mustaque and Harisankar V Menon, who were hearing several petitions against toll collection on the Edappally-Mannuthy stretch of NH 544.

The court suspended toll collection for four weeks, stating: “... we order that the collection of user fees shall be suspended forthwith for four weeks, and we further order that the central government shall take appropriate decisions within the above period addressing the concern and grievance of the public...”


The suspension comes amid ongoing construction on the highway, including underpasses, flyovers, and drainage works, which has caused major traffic congestion and poor service road conditions.

“Tie of Public Trust” Must Not Be Broken

The bench underlined that while the public must pay tolls under normal conditions, the NHAI is obligated to maintain smooth and barrier-free roads.

“This relationship between the public and the NHAI is bound by the tie of public trust. The moment it is breached or violated, the right to collect toll fees from the public created through statutory provisions cannot be forced on the public,” the court said.

It also added that all public infrastructure projects carry a duty to prioritise public interest: “This responsibility necessitates effective public management and oversight of such infrastructure projects. The contractual obligations entered into by the State with private partners cannot absolve the State of its foundational duty arising from the public trust doctrine.”

Toll Cannot Be Justified If Public Benefit Is Denied

The NHAI argued that toll collection is governed by contracts with private partners and that any stoppage could lead to legal claims. However, the court strongly rejected this: “No agreement between the State and a private entity can override the imperative to protect public interest.”

“If the public is not receiving the intended benefit of road usage in return for the user fees imposed, the State cannot compel payment of such a fee solely based on a private contractual arrangement.”

The judges reminded that the legal right to collect tolls comes from statutory provisions, not just private contracts.

“Consequently, in the absence of compliance with the objectives underlying the imposition of such fees, the National Highways Authority or its concessionaire cannot assert a right to demand or collect the same.”

Central Government Must Step In

The court expressed concern over the NHAI’s lack of action since public complaints began in February 2025: “We note with concern the total apathy displayed by the National Highways Authority in addressing the grievances raised, despite multiple opportunities having been made available to them... no meaningful steps were taken.”

The bench said there were “no managerial standards” from the Centre to handle such issues and stressed the need for public accountability.

“In such circumstances, we are of the considered view that the collection of toll shall remain suspended until the central government, in consultation with the National Highways Authority, chief secretary of the state and concessionaire, takes appropriate remedial action addressing the public grievance.”

“In a situation like this, in what manner the toll fee has to be levied is for the central government to decide; whether a pro rata deduction has to be given, or the levy of the fee be suspended till measures are taken...”

Inputs from PTI