Madras High Court Bans TNSTC Buses On NH Toll Plazas Over Rs 276 Crore Dues: “Drastic Steps Needed To Jolt Officials”

Madras High Court stops TNSTC buses from using 4 National Highway toll plazas for not paying Rs 276 crore dues. The Court warned of severe action unless dues are cleared soon.

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Madras High Court Bans TNSTC Buses On NH Toll Plazas Over Rs 276 Crore Dues: “Drastic Steps Needed To Jolt Officials”

Tamil Nadu: The Madras High Court on Tuesday passed a strict order against Tamil Nadu State Transport Corporation (TNSTC), asking toll operators to stop TNSTC buses from using four toll plazas on the National Highways.

This comes after the state-run bus corporation failed to pay pending toll fees totaling Rs 276 crores.

The petition was filed by four private toll operators — Madurai-Kanniyakumari Tollway Pvt Ltd, Kanniyakumari-Etturavattam Tollway Pvt Ltd, Salaipudur-Madurai Tollway Pvt Ltd, and Nanguneri-Kanniyakumari Tollway Pvt Ltd.

These companies approached the Court last year stating that they had suffered huge losses because TNSTC buses continued to pass through toll gates without paying the required charges.

During the case hearing, the petitioners submitted a detailed memo showing that around Rs 276 crores was pending from four different TNSTC branches, which also includes penalties and interest.

Even if penalties and interest are removed, the remaining unpaid amount is still Rs 113 crores, and the companies said that only Rs 48.5 crores have been paid so far. The rest is still unpaid despite repeated legal reminders.

The Court observed that one key issue in this matter is the violation of the 2000 Rules which require vehicles to use FASTags. It was also noted that TNSTC has not taken any proper steps to pay these dues, even after being warned several times.

Justice N Anand Venkatesh expressed strong concern over the state of the situation and said that unless the government takes firm steps, the Court will be forced to pass harsh orders.

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“This Court is aware of the potential consequences if such order is passed, since ultimately, it is the common man, who is using these Government buses who will be adversely affected. However unless and otherwise the order which will jolt the officials, is passed, they will not take efforts to settle this dispute, which has been going on for many years together. The longer the payments are delayed, the more the penalty and interest will escalate, potentially reaching astronomical proportions,”

-the Judge stated.

After this, the Court officially ordered all four toll operators to block TNSTC buses from passing through their toll plazas starting July 10. This ban will stay until TNSTC presents a proper plan to clear its dues.

To avoid any disturbance at the toll plazas, the Court also directed the Director General of Police (DGP), Chennai, to provide full police protection at all the toll gates run by the four private companies. The Court strictly instructed that police must ensure there is no pressure on toll operators to allow TNSTC buses to pass through.

Senior Advocate Satish Parasaran and Advocate Karthik Sundaram represented the petitioners in the Court.

Additional Government Pleader LSM Hasan Fizal and Advocate SU Srinivasan appeared for the state side (respondents).

CASE TITLE:
Madurai – Kanyakumari Tollway and ors v. TNSTC and ors
.

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Vaibhav Ojha

ADVOCATE | LLM | BBA.LLB | SENIOR LEGAL EDITOR @ LAW CHAKRA

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