The Patna High Court has lauded the One Time Traffic Challan Settlement Scheme, 2026, and observed that proactive executive notification of reduced compounding fees is a vital tool for clearing judicial backlogs. By validating the State’s notification dated April 30, 2026, the Court held that the amicable settlement of statutory penalties, particularly those pending for over 90 days, serves the dual purpose of public relief and administrative efficiency.

The scheme allows for the resolution of long-standing traffic violations through a structured, one-time payment mechanism that significantly deviates from standard penalty rates to encourage mass participation. In a move to modernise the Lok Adalat process, the Court has directed the implementation of a tech-enabled, multi-mode communication strategy to ensure that registered vehicle owners are informed of their reduced liabilities via digital platforms.

Chief Justice Sangam Kumar Sahoo and Justice Harish Kumar observed, “…Such timely intervention reflects a constructive and cooperative approach towards the administration of justice. It is reasonably expected that this measure will significantly facilitate the amicable settlement of pending matters, particularly in Lok Adalats, and thereby contribute to a meaningful reduction in the overall pendency of cases”.

Advocate Vikash Kumar Pankaj appeared for the petitioner and P K Shahi, Advocate General appeared for the respondent.

The case originated from a writ petition filed by Rani Tiwari regarding the pendency and settlement of traffic challans in the State of Bihar.

The State’s Transport Department, following previous judicial observations, sought Cabinet approval to notify a settlement scheme for traffic offenses under various sections of the Motor Vehicles Act, 1988.

On April 30, 2026, the Government of Bihar published Gazette Notification No. 3261, officially launching the One Time Traffic Challan Settlement Scheme, 2026, which targets e-challans pending for more than 90 days as of March 31, 2025.

On April 27, 2026, the Advocate General assured the Court that Cabinet approval was being processed. By the hearing on May 4, 2026, the Secretary of the Transport Department appeared virtually to confirm that the notification had been published and circulated to law enforcement and legal services authorities.

The Member Secretary of the Bihar State Legal Services Authority (BSLSA) subsequently submitted eleven comprehensive suggestions to facilitate the smooth conduct of the upcoming National Lok Adalat on May 9, 2026.

The Bench observed that the State’s prompt action in notifying reduced fees reflected a constructive approach toward the administration of justice. It noted that providing a clear, one-time settlement window would prevent the judicial system from being overwhelmed by minor traffic litigations while ensuring that the public is not deterred by excessive penalty amounts.

Accordingly, the Court ordered that the BSLSA’s suggestions be strictly adhered to, including the establishment of help desks, proper crowd management, and the issuance of targeted notices to vehicle owners within two days.

The Bench directed District Magistrates and Police Superintendents to identify suitable venues proximate to court compounds and ensure robust security, including CCTV placement. The Court explicitly prohibited the interference of external agents and mandated that the scheme be publicised in major newspapers and electronic platforms by May 06, 2026. A follow-up report detailing the total collection and disposal data is required by June 22, 2026.

Cause Title: Rani @ Rani Tiwari Versus The State of Bihar & Ors. (CWJC No. 20071 of 2025)

Appearances:

Petitioner: Vikash Kumar Pankaj, Advocate.

Respondents: P K Shahi, Advocate General, P K Verma, AAG-3, and Sanjay Kumar Ghosarvey, AC to AAG-3.

Click here to read/download the Order


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