State Of U.P. & Ors vs Devi Dayal Singh

The Supreme Court examined the State Government's authority to levy tolls under Section 2 of the Indian Tolls Act, 1851, concluding that tolls can only be imposed to recover the actual cost of construction of public infrastructure, not interest or maintenance charges unless borrowed funds are involved. The Court upheld the Allahabad High Court's decision that the State had already recovered the construction cost of the Gai Ghat bridge and thus could not impose further tolls. The appeals were dismissed, affirming the High Court's ruling against the imposition of additional tolls.