SC Upholds Suspension of Toll in Ernakulam–Mannuthy BOT stretch in Kerala

The Hon’ble Supreme Court of India in the case of National Highways Authority of India v. O.J. Janeesh & Ors. (Civil Appeal arising out of SLP (C) No. 22579 of 2025) dated August 18, 2025, dismissed the appeals filed by the National Highways Authority of India (NHAI) and the concessionaire, thereby affirming the Kerala High Court’s order suspending toll collection for four weeks on the Ernakulam–Mannuthy Build, Operate, Transfer (BOT) stretch. 

The dispute arose from the severe traffic congestion and disrepair of the 64.94 km stretch of National Highway between Ernakulam and Mannuthy, constructed and operated under a BOT arrangement. Although ownership and control vested with NHAI, the concessionaire was entrusted with maintenance and collection of tolls to recover expenses. As persistent citizen complaints and repeated High Court directions having failed to bring relief, the Kerala High Court, by its impugned order dated August 6, 2025, directed repairs and decongestion within four weeks and suspended toll collection during this period, further reserving the right of the concessionaire to seek damages from NHAI. Aggrieved, both NHAI and the concessionaire approached the Hon’ble Supreme Court of India, contending that congestion was confined only to four black spots where underpasses and flyovers were under construction, that the main carriageway was otherwise functional, and that suspension of tolls would cause a daily revenue loss of nearly ₹49 lakhs, jeopardising maintenance. The concessionaire also argued that it was absolved of responsibility at the black spots, which had been assigned to another contractor not impleaded before the High Court.

The Supreme Court, however, declined to interfere, emphasising that the High Court’s approach was citizen-centric and justified by the persistent failure to ensure compliance with earlier directions. The Court endorsed the view that a user fee can only be levied when the corresponding right to safe and unhindered passage is secured, and that in the prevailing circumstances, suspension of tolls was warranted. The contention that congestion was limited to five kilometers was rejected, the Court noting that the cascading effect of bottlenecks at black spots extended across the entire stretch, causing citizens hours of delay. The Court also expressed surprise at NHAI’s entrustment of construction at the black spots to another contractor while retaining overall maintenance obligations with the concessionaire but refrained from commenting on the contractual arrangement, leaving questions of liability for losses to be determined in appropriate proceedings.

The Supreme Court clarified that the High Court’s order did not impose absolute liability on NHAI for compensation; the Court directed that the contractor carrying out work at the black spots be impleaded in the ongoing proceedings and that the High Court continue to monitor the progress to ensure ease of traffic. It was further observed that NHAI and the concessionaire would be entitled to seek lifting of the prohibition once smooth traffic flow was restored, even before expiry of the four-week period.

This judgment underscores that the right to collect tolls is inseparably linked to the duty to provide unhindered and safe roads, and that citizen interest and legitimate expectations cannot be compromised under the toll regime.