The National Highways Authority of India (NHAI) appealed against the High Court judgment that prohibited toll collection at Runni Toll Plaza on Muzaffarpur-Sonbarsa section of National Highway-77 until the project's completion. The Supreme Court set aside the High Court's decision, allowing NHAI to utilize the toll fees collected and deposited in a nationalized bank. The Supreme Court also suggested that the Union of India and NHAI clarify the term "section of national highway."

Introduction

• Appeal by NHAI against the judgment dated 05.04.2016.
• High Court had prohibited toll collection at Runni Toll Plaza.

High Court Judgment

• High Court directed NHAI not to collect fees until project completion.
• Based on Rule 3(1) of the National Highways Fee (Determination of Rates and Collection) Rules, 2008.

Notification and Completion

• Notification dated 26.11.2013 under Section 11 of NHAI Act, 1988.
• Section length of 61.70 km and 20.38 km of bypasses completed.
• Independent verification by Intercontinental Consultants and Technocrats Pvt. Ltd.
• Provisional completion certificate dated 29.06.2015.

Toll Collection and Annuity Payment

• Toll collected by NHAI under "Build, Operate and Transfer" basis.
• Contractor paid annuity as per the contract for 15 years.
• Toll collected until actual costs are recovered, then reduced to 40%.

Supreme Court's Opinion

• High Court's judgment unsustainable due to lack of interpretation of Rule 3(1) and other facts.
• Interim order had stayed the High Court's decision with toll fees deposited in a nationalized bank.

Supreme Court's Decision

• Impossible to return collected toll to users.
• Modifying interim order would harm road users.
• Toll fees and interest to be utilized by NHAI towards actual cost recovery.

Conclusion

• Judgment dated 05.04.2016 set aside.
• Civil Writ Jurisdiction Case no. 12858/2015 dismissed.
• Union of India and NHAI advised to clarify the term "section of national highway."

Pending Applications

• All pending applications stand disposed of.