Summary
The Court upheld the toll plaza at km 194 of NH30 and set aside the direction to shift it. Rule 8(1)’s second proviso independently permitted the location where the highway construction within municipal limits primarily served local residents. It did not import the first proviso’s express requirement of recorded reasons, though a competent decision, application of mind and supporting material remained necessary. The evidence and petitioners’ own pleading established compliance. Directions required proper decision records, removal of unauthorised barriers and full statutory concessions.
Issues
- Whether the second proviso to Rule 8(1) imported the first proviso’s requirement of reasons recorded in writing.
- Whether the toll-plaza location satisfied the statutory conditions and Article 14.
- Whether the unappealed companion writ judgment prevented relief, and what consequential safeguards were required.
Provisions considered
- Rule 8(1), including both provisos, National Highways Fee (Determination of Rates and Collection) Rules, 2008The second proviso was an independently operative provision with objective conditions; its decision lay with the executing authority and did not import the first proviso’s express requirement of recorded reasons. (¶¶ 30, 65, 66, 67, 68, 69, 70, 71, 72, 74, 75, 76, 77, 82, 85, 95)
- Rule 17, National Highways Fee (Determination of Rates and Collection) Rules, 2008Additional barriers required compliance with the rule; unauthorised barriers closing service roads were to be removed. (¶¶ 32, 88, 97)
- Articles 14 and 141, Constitution of IndiaThe location was supported by a rational basis. The binding legal determination also answered the objection based on the unappealed companion mandamus. (¶¶ 60, 61, 62, 89, 90, 91, 92, 93, 94)
Held
- Administrative decisions do not invariably require a statement of reasons. Statutory requirements must be obeyed, and fairness or an adverse effect on legal rights may independently require reasons. Even absent a recording duty, decisions require a rational basis and application of mind; supporting records, pleadings and material may establish that basis in appropriate circumstances. (¶¶ 40, 49, 50, 60, 61, 62)
- The first proviso permits a location between five and ten kilometres from municipal limits only through the executing authority and reasons recorded in writing. The second permits a location within municipal limits or within five kilometres upon satisfaction of its construction and primary-local-use conditions. Those objective conditions are its safeguard; importing the first proviso’s recording requirement would rewrite the rule. The executing authority must nevertheless make the decision and apply its mind. (¶¶ 65, 66, 67, 68, 69, 70, 71, 72, 74, 75, 76, 77)
- The project materials, road widening and petitioners’ own pleading established that construction within the municipal area primarily benefited its residents. Primary benefit did not require exclusive benefit. The accepted expert recommendation, available space and avoidance of toll leakage supported the location; commercial viability could be considered within the statutory conditions, and arbitrariness was not established. (¶¶ 78, 79, 80, 81, 82, 83, 84, 85, 86, 94)
- The objection founded on the unappealed companion judgment did not preclude relief. Applying Article 141 and the cited precedent, a mandamus to shift the plaza could not remain enforceable contrary to the Court’s determination that its location was lawful. (¶¶ 89, 90, 91, 92, 93)
- The appeal was allowed without costs. Unauthorised barriers were to be removed within two weeks; NHAI was to direct executing authorities within three weeks to maintain distinct records of decisions invoking the second proviso. NHAI and the concessionaire were also directed to extend the fullest Rule 9 concessions. (¶¶ 88, 95, 96, 97)
Result
Appeal allowed without costs; toll-plaza relocation direction set aside. Unauthorised barriers to be removed within two weeks, record-maintenance directions issued within three weeks, and statutory concessions fully extended.