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Dsc-Viacon Ventures ... v. Lal Manohar Pandey (S)

Supreme Court Of India
Jan 27, 2015
Smart Summary (Beta)

Factual and Procedural Background

The proceedings stem from allegations that the petitioner-company, which collects toll on the Raipur–Durg road, failed to repair a 26 km stretch of that highway. Respondent No. 1 had approached the High Court complaining about the poor condition of the road, leading to the impugned High Court order now under consideration. During the present hearing, the Supreme Court* noted two parallel procedural developments: (i) respondents sought additional time to file counter-affidavits, and (ii) questions arose regarding the petitioner’s compliance with an earlier order of 6 January 2015 that required depositing toll collections in a bank account.

Legal Issues Presented

  1. Whether the petitioner-company has complied with the Court’s order dated 6 January 2015 regarding the deposit of toll revenue in a designated bank account.
  2. How the actual physical condition of the Raipur–Durg road should be ascertained so that appropriate directions can be issued on repairs and future toll collection.

Arguments of the Parties

Respondent No. 1’s Arguments

  • The undertaking recently filed by the petitioner does not clarify whether toll amounts are in fact being deposited in a bank account, thereby breaching the 6 January 2015 order.
  • The road remains in poor condition; neither the State authorities nor the Union of India have taken meaningful remedial action.

Petitioner’s Arguments

  • An affidavit by the petitioner’s authorised signatory states that all toll collections are deposited in State Bank of Patiala, Raipur, in the specified account number.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court first addressed the alleged non-compliance with its earlier order on toll revenue. Observing that the petitioner had produced an affidavit indicating bank deposits, the Court required a concrete statement of account to verify the deposits and directed that a copy be supplied to opposing counsel.

Turning to the substantive grievance about road maintenance, the Court noted that existing assertions about the highway’s condition were not supported by an on-site inspection report. Recognising that any further orders concerning toll collection or mandated repairs must rest on accurate data, the Court constituted a three-member committee comprising:

  • Mr. Arvind Shrivastava, Former District Judge, Raipur (Chairman);
  • The Chief Engineer in charge of the local NHAI region; and
  • The Chief Engineer, Public Works Department, State of Chhattisgarh.

The committee is empowered to:

  • Conduct a physical inspection of the 26 km stretch;
  • Assess the current condition of the road;
  • Identify the nature and extent of repairs required;
  • Estimate repair costs and ascertain whether any repairs have already been undertaken;
  • Seek technical assistance from specialised agencies if needed.

Representatives of both the petitioner-company and respondent No. 1 may be associated with the inspection, provided they do not impede the process. The committee is to submit its report within four weeks of receiving the Court’s order.

Holding and Implications

ORDER: (1) Respondents are granted three weeks to file counter-affidavits. (2) The petitioner-company must file a detailed bank statement evidencing deposits of toll revenue and furnish a copy to opposing counsel. (3) A three-member committee is appointed to inspect the Raipur–Durg road, estimate required repairs and costs, and file a report within four weeks. (4) The matter will be listed immediately after the report is received.

Implications: The decision establishes a fact-finding mechanism rather than laying down new legal precedent. It ensures financial transparency regarding toll revenues and seeks an objective assessment of the highway’s condition to inform future judicial directions affecting both toll collection and infrastructure repair obligations.

Show all summary ...

1. Heard.

2. Learned counsel for the respondents pray for and are granted three weeks' time to file their counter affidavits.

3. Dr. J.N. Dubey, learned senior counsel appearing for respondent no. 1 submits that the petitioner has not complied with the order of this Court dated 6 January, 2015 inasmuch as the undertaking filed by them does not state whether they are depositing the amount collected towards road toll in a bank account.

4. Mr. Kapil Sibal, learned senior counsel appearing for the petitioner, in reply, draws our attention to an affidavit filed by Mr. Ram Kumar Saini, authorised signatory on behalf of the petitioner-company, to submit that the toll tax collected by the petitioner-company is being deposited in the State Bank of Patiala, Raipur, in the account number, mentioned therein.

5. In that view, therefore, all that we need say is that the petitioner-company shall file a copy of the statement of account indicating the deposits made till date, with a copy to counsel opposite.

6. The controversy in the present proceedings relates to the alleged failure of the petitioner-company to repair a stretch of road measuring 26 kms. From Raipur to Durg. The writ petitioner-respondent no. 1 approached the High Court alleging complete failure on the part of the petitioner-company in carrying out the requisite repairs culminating in the passing of the impugned order by the High Court. It is contended by Mr. Dube that the road condition continues to be poor and that the State Authorities have done nothing meaningful in the matter. This position is not disputed by Mr. Jugal Kisore Gilda, learned Advocate General appearing for the resondent-State of Chhatisgarh, and Mr. A.K. Sanghi, learned senior counsel appearing for the respondent-U.O.I., according to whom the road is in a bad shape and requires extensive repairs.

7. Be that as it may, the condition of road is not properly reflected in any report based on actual spot inspection. Further directions regarding the collection of toll tax as also possible repair of the road will depend upon the actual condition prevailing on the spot. In that view, we deem it proper to direct that a committee comprising (1) Mr. Arvind Shrivastava, Former District Judge of the Raipur, as Chairman and (2) Chief Engineer, Incharge of National Highway Authority of India of that region along with (3) Chief Engineer, Public Works Department of the State of Chhatisgarh as members shall inspect the road and submit a report as to its condition as also the nature and the extent of repairs required for the same. The report shall also estimate the cost of the repairs to be carried out and whether any repair work has at all been carried out at any stage.

8. The committee of officers shall be free to associate a representative of the petitioner-company and respondent no. 1 with the process of inspection but such association shall not be used to cause interference with the process of inspection, measurement or estimation of the cost of repair etc. by the committee.

9. The Committee shall submit a report expeditiously but as far as possible within a period of four weeks from the date a copy of this order is served upon the members of the Committee. We make it clear that the Committee of officers shall also be free to take technical or other advice or help from any other specialised agency, if any such help is required in the completion of the work assigned to them.

10. Post immediately after the report from the Committee is received.