Supreme Court Stays HC Order Slashing Toll To 20% On NH-44 Stretch; NHAI To Levy Toll At 75% Rate

The Supreme Court on Tuesday stayed Jammu & Kashmir and Ladakh High Court's order directing an 80 percent reduction in toll-fee at the Lakhanpur and Bann Toll Plazas on National Highway–44, until the completion of construction on the Lakhanpur–Udhampur stretch. The High Court had observed that it was unfair to collect toll if the road was in a bad shape.

NH–44 is part of the North–South Corridor and stretches from Srinagar to Kanyakumari.

A bench of Justice Abhay Oka and Justice Ujjal Bhuyan passed the interim order while issuing notice returnable on May 19, 2025 in an SLP filed by the National Highways Authority of India (NHAI) against the High Court order reducing toll charges.

The order was dictated thus, “Issue notice returnable on 19th May 2025. There will be stay of this order. Learned SG states that after order of stay of this court, the petitioner will continue to recover toll at the rate of 75 percent in accordance with the prevailing Rules.”

Solicitor General Tushar Mehta, appearing for the NHAI, submitted that the toll rates had already been reduced and the High Court had questioned the rate of reduction. He said that the High Court did not have the power to pass such an order and sought a stay.

Justice Oka then asked, “Then what will be the toll applicable?” To this, Mehta replied, “Reduced rate. Our Rules permit that is 75 percent of the rate fixed. It will be different for vehicles and tolls.”

Rule 4(9) of the National Highways Fee (Determination of Rates and Collection) Rules, 2008 provides for toll rates to be reduced to 75 percent of the notified fee during the period of upgradation from four lanes to six lanes. NHAI had submitted before the High Court that requisite reduction for stretches under widening to six lane expressway had already been done.

Background

The High Court had passed the impugned order in a Public Interest Litigation which sought exemption from toll tax at Lakhanpur, Thandi Khui, and Bann Toll Plazas until the Delhi-Amritsar-Katra Expressway becomes fully operational.

The petitioner submitted that the highway from Udhampur to Lakhanpur had been under construction since 2021 and that nearly 70 percent of the stretch remained incomplete. The plea relied on Rule 3(1) and 3(2) of the National Highways Fee Rules to argue that toll tax should only be collected after construction is fully completed.

In the impugned order, the High Court noted that the highway was in a deteriorated state, which made toll collection unfair and unreasonable. The High Court stated that commuters were being unfairly charged as they were not receiving value for the tolls paid. It further said that the government was expected to suspend toll collection until the Delhi-Amritsar-Katra Expressway became fully operational. However, instead of suspending the toll, the respondents had increased the toll rates at Lakhanpur Toll Plaza and Bann Toll Plaza, the Court had observed.

The High Court reduced the toll at the two plazas by 80 percent of pre-January 26, 2024 till the highway from Lakhanpur to Udhampur becomes fully operational and certified by an independent surveyor. Further, the High Court directed the withdrawal of the order redistributing toll influence length between Lakhanpur and Bann plazas.

The High Court barred toll plazas within 60 km of each other and ordered removal of existing ones violating this rule. It also directed the Union Ministry to reconsider and reduce toll rates across all plazas within four months. The Court further directed that persons with criminal backgrounds should not be employed at toll plazas and mandated police verification of all toll staff.

The NHAI's SLP was filed through Nishant Awana, AoR.

Case no. – SLP(C) No. 9220/2025

Case Title – National Highway Authority of India v. Sugandha Sawhney and Ors.