New Delhi: The Supreme Court on Friday (December 20) upheld an order of the Allahabad High Court which held that the commuters using the Delhi Noida Direct (DND) flyway will not be required to pay toll to cross the flyway.
A bench headed by Justice Surya Kant dismissed the appeal filed by the company, the Noida Toll Bridge Company Ltd, which was operating the flyway then having stretch of 9.2 kilometers from NOIDA to Delhi and the collection of toll was legitimised by way of the agreement with the company.
NOIDA authorities overstepped its authority by delegating powers to NTBCL to collect or levy fees: Apex Court
The apex court said that the NOIDA authorities overstepped its authority by delegating powers to NTBCL to collect or levy fees and it was alien to terms of concession agreement.
“NOIDA overstepped its authority by delegating its power to levy toll on the company”, the bench said and added, “Appeal is dismissed. The High Court (Allahabad) correctly entertained it. The writ was maintainable. Contract awarded to NTBCL was unjust, unfair and arbitrary and delegating power to NTBCL to levy fee was illegal.”
The CAG report has highlighted growing nature of unfinished project costs and here it has resulted in undue burden on users and it is violative of article 14, the bench said.
General public has parted with several 100s of crores of rupees and have been defrauded by NTBCL: Apex Court
“Language of concession agreement is such that it is perpetually in effect and thus forever enriching NTBCL at the cost of NOIDA. Thus, we hold that general public has parted with several 100s of crores of rupees and have been defrauded by NTBCL. There is no reason for the collection of user or toll fee to continue. We hold that article 14 of the agreement is invalid.” the bench said.
Which issues the apex court determine?
The apex court determined the following issues – whether the Public Interest Litigation (PIL) was maintainable in the High Court, whether tender condition was justified, if the levy fee could be delegated to NTBCL.
“We have also held that when state engages in public work, it must be free of arbitrariness. There was no tender from other interested companies and no competitive bidding was done and thus, we hold NTBCL Being selected was violative of article 14 and illegal,” the bench said.
