The Supreme Court of India has stayed the Madras High Court's order that had halted toll collection on the Madurai-Tuticorin Highway (NH-38). The decision, delivered on June 9, 2025, temporarily allows the National Highways Authority of India (NHAI) to resume toll collection on the disputed stretch of road.

The legal battle began when the Madras High Court directed NHAI to cease toll collection on June 3, 2025, citing poor maintenance of the highway. Justices S.M. Subramaniam and A.D. Maria Clete emphasized that toll collection is permissible only when highways are well-maintained, as mandated by the National Highways Authority of India Act. The High Court's order came in response to a Public Interest Litigation (PIL) filed by a retired engineer, V. Balakrishnan, who argued that despite the collection of toll fees, the Madurai-Tuticorin highway remained in a dilapidated condition, with many sections becoming non-motorable. Balakrishnan also pointed out that although the initial contract was awarded to Madurai-Tuticorin Expressways Limited (MTEL) in 2006, and the road was operational by 2011, the company failed to maintain the road adequately. NHAI terminated its contract with MTEL in 2023 but continued to collect toll fees without undertaking necessary repairs and plantation works.

NHAI challenged the Madras High Court's order by filing a Special Leave Petition (SLP) in the Supreme Court. The petition was presented before a bench of Justice Sanjay Karol and Justice Satish Chandra Sharma, who scheduled an urgent hearing for June 9, 2025. Subsequently, the case was reviewed by Justice Prashant Kumar Mishra and Justice Manmohan. NHAI argued that the toll charges were established based on detailed project reports and contractual terms with concessionaires, ensuring funds are utilized for highway upkeep and safety improvements. They also contended that halting toll collection would disrupt infrastructure financing, potentially delaying future projects and essential maintenance.

The Supreme Court's decision to stay the High Court's order allows NHAI to resume toll collection while the matter is further deliberated. This intervention is significant because it addresses the balance between public concerns regarding road conditions and the financial mechanisms required for infrastructure development. The Supreme Court's final verdict is expected to set a precedent on whether toll fees can be collected on roads that do not meet the required maintenance standards, impacting similar disputes across the country.