HC Rules Fuel Cannot Be Denied for Pending Challans, Upholds PUC Refusal Under Amended Rule 167:

HC Rules Fuel Cannot Be Denied for Pending Challans, Upholds PUC Refusal Under Amended Rule 167 The Orissa High Court ruled that fuel cannot be denied for pending challans but upheld the refusal of PUC certificates under amended Rule 167 if challans remain unpaid beyond the legal time limit. The writ petition has been disposed of. The High Court of Orissa has recently delivered its judgement on a writ petition filed by Snigdha Patra against the State of Odisha and Others. The final decision on the matter was announced on February 10, 2026. The petitioner challenged a government notification dated December 20, 2025, and also raised two key issues concerning denial of fuel to vehicles with pending traffic challans and refusal to issue Pollution Under Control (PUC) certificates to such vehicles. During the hearing, the state government highlighted the earlier ruling of the same petrol pumps for supplying fuel to vehicles with pending challans. In conclusion, petrol and diesel cannot be denied solely because a challan is pending.

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However, the key issue that remained was whether authorised centres could refuse to issue a PUC certificate if a vehicle had unpaid challans. The Court deeply examined the provision of Rule 167 of the Central Motor Vehicles Rules, especially after the amendment introduced to it in 2026. As per the amended rules, if a challan remains unpaid beyond the specified time limit, then the vehicle will be categorised as “Not to be Transacted” on the Vahan portal of the government. A clarification dated January 27, 2026, was issued by the Ministry of Road Transport and Highways, which stated that a "transaction" includes services like the issuance of a PUC certificate. The court noted that since the PUC (Pollution Under Control) testing is a compulsory requirement, denying the certificate in cases of pending challans aligns with the intention of the law.

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In conclusion, the court held that authorities are legally correct in denying to issue a PUC certificate if challans remain unpaid even after the legally allowed time limit. Since the fuel supply restriction had already been withdrawn previously, the writ petition was disposed of without costs.