NHAI Wants Punjab Govt To Compensate Losses Incurred By Closing Of Toll Plaza By Protestors, High Court Seeks Response

The Punjab and Haryana High Court today sought response from the Punjab Government on an application moved by the National Highway Authority of India (NHAI) seeking compensation for the alleged losses suffered by the authority "due to the failure of the State to maintain law and order in the State of Punjab leading to unauthorized closures of Toll Plazas."

The application was filed in a plea moved by NHAI seeking security and administrative assistance for the smooth functioning of toll plazas in Punjab.

The Farmer union activists have been protesting against frequent hikes in the toll fee for the past 15 days, alleging that NHAI is hiking the toll fee at will without providing adequate facilities.

Justice Vinod S. Bhardwaj has issued notice to the Punjab Government.

It was submitted in the application that the Toll Plazas at various locations were illegally stopped for 5 to 112 days in  2022- 2023. "Similarly, various Toll Plazas were closed for varying periods in 2024, some of which have still not resumed functioning," it added.

The application stated that the "illegal closures of the Toll Plazas by the protestors time and again in the State of Punjab are a direct consequence of the defaults of the Respondents (Punjab Government) to fulfill their obligations mandated in terms of the State Support Agreement. Needless to say, the Applicant has written various correspondence to the Respondents seeking their cooperation and intervention for the smooth operation of the Toll Plazas. However, the Respondents utterly failed to ensure the smooth functioning of the Toll Plazas thereby causing huge losses to the Central Ex-chequer."

Referring to a clause of the State Support Agreement, the NHAI submitted that in the event of default of the State, they are liable to compensate for the damages/losses suffered owing to their defaults.

"The illegal closure of the Toll Plazas in the State of Punjab is a direct consequence of defaults of the Respondents thereby, causing a breach of the State Support Agreement," the application added.

Case Title: National Highway Authority of India & Ors v. State of Punjab & Ors.

Sr. Adv Chetan Mittal appeared for NHAI