STATE OF U.P. vs DEVI DAYAL SINGH

The Supreme Court examined the extent of the State Government's power to levy tolls under Section 2 of the Indian Tolls Act, 1851, concluding that the State cannot recover tolls beyond the actual cost of construction of the bridge, which was Rs. 39,97,000/-. The Court upheld the Allahabad High Court's decision that interest on the expenditure or maintenance charges cannot be levied as toll unless borrowed from a financial institution. The Court affirmed the High Court's directive to cease further toll collection on the Gai Ghat bridge, as the State had already recovered more than four times the construction cost through tolls.