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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

ACKNOWLEDGEMENT
Any accomplishment requires the efforts of many people and there are no exceptions. The
project being submitted today is a result of collective effort. Although it has been solely
prepared by me to meet the requirements of Clinical Course-I, in partial fulfilment of the
degree of BA-LLB (Hons), there are numerous helping hands behind it who have guided me
on my way.
I express my deepest regard and gratitude towards Dr.Eqbal Hussain, Faculty of Law, Jamia
Millia Islamia, New Delhi. His constant supervision, consistent inspiration and invaluable
guidance have been of immense help in understanding and carrying out the nuances of this
project report.
I take this opportunity to thank the University and the Vice Chancellor for providing
extensive database resources in the library and through internet.
I would also like to thank my family and friends without whose support and encouragement,
this would not have been a reality.
I would be grateful to receive comments and suggestion to improve this project report.

SAIMA SULTAN
BA-LLB (Hons.)
Enrollment no.: 13-1735
Semester: 7, Sec. B

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

METHODOLOGY
In pursuing this study, both primary and secondary sources are used. From the primary
source, various books on the Lok Adalat and some specific books have been relied upon.
The secondary source has been referred to and applied upon the articles which are written by
eminent judges, jurist, academicians, and lawyer’s journals etc. published in leading law
journals.
The material was collected and chaptered accordingly. To make it easy and understandable,
the whole assignment has been divided into topics which individually reflect upon the
implications involved.
This assignment emphasizes on the understanding of the concept of Lok Adalats in Indian
context.

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LIST OF ABBREVIATIONS
1. A.I.R. All India Reporter
2. Anr. Another
3. Art./Arts. Article/Articles
4. Ch. Chapter
5. Edn. Edition
6. H.C. High Court
8 Hon’ble Honourable
9. i.e. That is
10. E.g. Example
11. Govt. Government
12. Ltd. Limited
13. Ors. Others
14. No. Number
15. O Orders
16. Sec./Secs. Section/Sections
17. v. Versus
18. S.C. Supreme Court
19. S.C.C Supreme Court Cases

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

LIST OF CASES
S.No. NAME OF CASES Pg. No.

1. Chandran v. Prakasan 53

2. Krishnakumari v. Venugopal Supreme Court of India 53

3. Manju Gupta vs. National Insurance Company 24

4. Mansukhlal Vithaldas Chauhav v. State of Gujarat 49

5. Moni Mathai Others v. Federal Bank Ltd 53

6. P.T. Thomas v. Thomas Job 48, 53

7. Punjab National Bank v. Lakshmichand Rah 49

8. Sailendra Narayan Bhanja Deo v. The State of Orissa 54

9. The Commissioner, Karnataka State Public Instruction 54


(Education), Bangalore v. Nirupadi Virbhadrappia
Shiva Simp
10. Thomas v. Florence 53

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LIST OF CONTENTS
CHAPTER. TOPIC PAGE. No.
No.
1. CONCEPT AND NATURE 9-14
i. Meaning
ii. Nature
2. HISTORICAL BACKGROUND 15-19
i. History
ii. Post- Independence era of LA
3. SIGNIFICANCE OF LOK ADALAT 20-24
i. Special Features
ii. Why Lok Adalats?
4. PROCEDURAL ASPECT 25-31
i. Procedure at LA
ii. Scheme relating to civil cases
iii. Scheme relating to criminal cases
iv. Scheme relating to pre-trial
v. Scheme relating to pending cases
vi. Scheme for mobile Legal Services
5. LEGISLATIVE ASPECT 32-37
i. Lok Adalats: An Integral part of the Constitution
ii. Legislations pertaining to Lok Adalat
6. PERMANENT LOK ADALATS 38-45
i. Legal Provisions
ii. Effect of PLAs
7. AWARD OF LOK ADALAT 46-50
i. Finality of Award
ii. Award and Judicial Review
8. LANDMARK JUDGMENTS 51-54
9. FINDINGS OF THE STUDY 55-59
i. Suggestions
ii. Conclusion

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INTRODUCTION
“India possessed the large corpus of law; social justice was yet to percolate
to the poor. The poor had lost faith in the capacity of the courts to deliver
justice. Every new law seems to take away something without giving the
poor anything. The poor had begun to feel that law is repressive”.1
- Bhagwati, J
With the judicial system in most of the countries being burdened with cases, any new case
takes a long time to be decided. And, till the time the final decision comes, there is a state of
uncertainty, which makes any activity almost impossible. Hence, commerce, business,
development work, administration, etc., all suffer because of long time taken in resolving
disputes through litigation.2
Alike other countries, Indian Judiciary is held in very high esteem among the judicial systems
of developed as well as developing nations, yet it is struggling with many problems such as:
mounting burden of backlog of court cases, the high cost of litigation, corruption, inadequate
number of judges, lack of sufficient accommodation and staff, unpredictable delays, and
inaccessibility of justice. 3
To get out of this maze of litigation, most of the countries encourage alternative
methods of dispute resolution and Lok Adalats is one of them. Hence, the concept of Lok
Adalats added a new chapter to the justice dispensation system of this country and succeeded
in providing a supplementary forum to the litigants or disputants for satisfactory settlement of
their disputes. 4
It is a voluntary mechanism and an institution which settles dispute by adopting the
principles of justice, equity and fair play whereby justice is dispensed summarily without too
much emphasis on legal technicalities.
In other words, the institution of Lok Adalats is an amorphous crowd of concerned citizens
animated by a common desire for justice and willing to experiment with consensual models

1
Sarfaraz Ahmed Khan, Lok adalat: An Effective Alternative Dispute Resolution Mechanism, 65 (APH Publishing
Corporation, New Delhi, 2006).
2
Sayani Chakeraborty and Soumya Misra, “Lok Adalat,” available at:
http://stpl.india.com (last visited on September 5, 2016).
3
“Concept and Nature of Lok Adalat” , avalaible at:
http://shodhganga.inflibnet.ac.in (last visited on September 5, 2016).
4
Ibid.

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5
of dispute resolution. It is a unique ray of hope for the common masseses where they can get
the justice in real sense without any impediments.
Further, it is a major aspect of legal aid programme because it intends to provide
equal protection of law and equal access to justice to all people, particularly the poor who
lack means to knock at the door of justice.6 Moreover, equal access to justice to the people
through efficacious justice delivery mechanism is necessary for the existence of a democratic
system. In the words of Brennan J “Democracy’s very life depends upon making the
machinery of justice so effective that every citizen shall believe in and benefit by its
impartiality and fairness”.7
But before going ahead, it is noteworthy to mention here that the Lok Adalat system is not a
substitute for the present judicial system, rather supplementary to it so that the arrears of
cases in courts of law may be reduced.8 The system is based on Gandhian principles because
it gives a practical shape to the twin concept of Swaraj and Sarvodaya propounded by the
Father of the Nation.9 The concept of the Swaraj implies not merely liberation from the
foreign yoke but also emancipation from backwardness, poverty and illiteracy. The concept
of Sarvodaya means wellbeing of all, obliteration of distinction between haves and have-nots.
Hence, the system casts duty upon us to work constructively and actively to uplift the
downtrodden.10
The esteem position of the very concept of Lok Adalat is reflected from the fact that it is an
integral part of the Indian Constitutional Scheme mentioned in Preamble, Part III and Part IV
of the Constitution. The Constitution mandates not only to impart justice in its legal sense,
but also social, economic, and political sense. Equal justice and free legal aid is a directive
principle of state policy imbibed in Article 39A which is particularly concerned with the need
of qualitative and effective justice delivery mechanism. The institution of Lok Adalat has
been developed in the process of implementation of commitments of the Constitution in order
to mitigate not only the problem of justice delays resulting from adjudication of even
ordinary disputes by the normal courts procedure but also to dispense less expensive justice

5
Shiraj Sidhva, “Quick, Informal, Nyaya,” 39 LEXET JURIS (1988).
6
N.C. Jain, “Legal Aid, Its Scope and Effectiveness of the Legal Aid Rules in This Regard,” 185 AIR (1996).
7
S. Rao, “Legal Aid and Undertrials,” 37 CrLJ (1993).
8
Paras Diwan, “Justice at the Door-Step of the People, The Lok Adalat System,” 85 AIR (1991).
9
Ibid. at 86.
10
Ibid.

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quickly with the conciliatory efforts. So, Lok Adalat is a weapon to achieve the constitution
goals enshrined in different provisions.11
Therefore, the emergence of the concept of Lok Adalat as a new system of dispensation of
justice is a result of social philosophy of judges, jurists and eminent scholars who are always
engrossed in the thought to establish a new forum for providing inexpensive and quick justice
to people. It is a participatory justice system which can only survive with the actively
involvement of lawyers, judges, social workers, reputed persons of the society and specially
the concerned parties to the dispute.

11
See Constitution of India, Preamble, Articles- 14, 21, 38, 39A and 40.

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CHAPTER-I
CONCEPT AND
NATURE

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1.1. Meaning of Lok Adalat


The expression Lok Adalat comprises two words, namely, ‘Lok’ and ‘Adalat’ the
former expressing the concept of public opinion while the latter denoting the accurate and
through deliberation aspect of decision making.12
Generally speaking Lok Adalat is a para-judicial institution being developed by the
people themselves, still its infancy, trying to find an appropriate structure and procedure in
the struggle of the common people for justice. It is a forum where the parties to the dispute
by, by voluntary efforts, aim at bringing about settlement through convivial and persuasive
efforts.13
In other words, it is a system of alternative dispute resolution developed in India. It
roughly means "People's court".14 However, Lok Adalat is not a substitute for a present
judicial system because as a matter of fact they do not decide cases, they merely resolve them
by persuading parties by explaining to them advantage of compromising a case. Still, it is
considered as a substitute to it with a view to curtail the mounting arrears and to reduce the
speed of new institutions.15
The system of Lok Adalats is a non-adversarial system16, whereby mock courts
(called Lok Adalats) are held by the State Authority, District Authority, Supreme Court Legal
Services Committee, High Court Legal Services Committee, or Taluk Legal Services
Committee. They are held periodically for exercising such jurisdiction as they determine. 17
These are usually presided over by retired judges, social activists, or other members of the
legal profession.
One important condition is that both parties in dispute must agree for settlement
through Lok Adalat and abide by its decision. However, a case can also be transferred to a
Lok Adalat if one party applies to the court and the court sees some chance of settlement after
the other party has been given an opportunity of being heard.18

12
Anurag K Agarwal, “Role of Alternative Dispute Resolution Methods in Development of Society: Lok Adalat in
India” 5 IIMA (2005).
13
Ibid.
14
Supra note 11.
15
Supra note 7 at 86.
16
It is a forum where the entire dilatory procedure of adverbial litigation is bypassed.
17
A Lok Adalat has jurisdiction to deal with all matters except matters relating to offences, which are non-
compoundable.
18
Supra note 2.

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1.2. NATURE OF LOK ADALAT


It is an institution to serve the poor by means of dispensing justice for the reason that
the poor need to go out of his village, spend hard earned money and waste weeks and months
in town in litigation and be exploited by lawyers.19 The forum of Lok Adalat is contrived to
enable the common people to ventilate their grievances against the state agencies or against
other citizens and to seek a just settlement if possible.
In order to ensure that the settlement is expedient, fair, just and according to good
conscience and at the same time not violative of law, the Lok Adalat implies resolution of
people dispute by discussion, counselling, persuasion and conciliation. It precisely implies
speedy and cheap justice and to common man at his door step.20 Mutually agreed settlements
arrived at by the disputants in the Lok Adalat contribute to the greater social solidarity and
better cohesion among litigants.21
The basic purpose of Lok Adalat is not to impose the justice but the people are
awakened to their own rights and duties vis-à-vis the rights and duties of others. There is a
rational thinking on the part of both the parties to the dispute without going towards
adversary system of proving or disapproving guilt. They try to bring about a solution, which
is acceptable to both the parties by the intervention of the third party. Lok Adalats can thus be
termed as conciliation courts and are basically judicial-aided and judge-guided strategies
evolved to save time in obtaining justice and clear the backlog of arrears of cases.22
The main characteristics of the Lok Adalats by conciliation process are:
 It is amicable and peaceful method of settlement of disputes;
 It is bipartite, as well as tripartite technique for the resolution of the dispute;
 The third party to the dispute i.e. mediator or conciliator is either invited by one party
or both the parties voluntarily or compulsorily to assist them to mutually arrive at an
agreement or compromises;
 The third party conciliator is not arbitrator, whose award decision may be binding;
 The conciliator must establish himself as a neutral, experienced, intelligent, objective
and benevolent participant in the efforts of the parties to negotiate settlement,
knowing fully well, that he does not have a feeling of irritation and frustration in the
event of no settlement;
19
Supra note 2.
20
Supra note 7.
21
N.R. Madhava Menon, “Lok Adalat: People’s Programme for Speedy Justice,” 129 Ind Bar Rev 13:2 (1986).
22
Ibid.

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 The method adopted by the third party is of persuasion, legal and factual guidance,
advice, mutual give and take;
 The decision of the conciliator is of recommendatory nature; in some cases, when
both the parties on the issue in the same sense, then the consent decree may be passed;
 Voluntary acceptance of the solution to the dispute is the essence of the conciliation.
Nothing can be imposed on the parties to the dispute.23
It is primarily the responsibility of the conciliator that he must keep negotiation/talks
moving towards settlements. For this, he must encourage the parties to explore fresh avenues
and choices, offer suggestions and alternative proposals, guide the discussions by feeding
valuable information etc.24
Hence, the true basis of settlement of dispute by the Lok Adalat is the principle of mutual
consent and voluntary acceptance of the solutions with the help of a conciliator. The concept
of Lok Adalat basically revolves around the principle of creating awareness amongst the
poor, innocent, illiterate and ignorant people to the effect that their welfare and interest really
lies in arriving at immediate and peaceful settlement of their dispute.25 It is to make them
conscience of the fact that the only suitable remedy with them is in getting rid of their case by
a single decision through compromise which will save not on their hard earned money but
multiplicity of litigation, by being involved in appeal, review, revision, remand etc. the never
ending chain. It will create an atmosphere of goodwill amongst the parties which in ultimate
analysis will bring peace in the society at large.
Also, Lok Adalat works on the equitable principle rather than legal and technical
considerations. It is not purely judicial in character. It tries to inculcate the sense of reasoning
in the minds of disputants by having deep insight into their minds after the study of their
psychology, their leanings and prejudices.
The Lok Adalat comprises of a team of counsellors, retired judicial, revenue
26
administrative officers, advocates, academicians, social workers, etc. The team of
conciliator for Lok Adalats comprises not less than three and not more than five members.27
The Adalats are arranged periodically at different places. There are no permanent court
premises for resolution of disputes through Lok Adalats. These are organized temporarily for

23
Karthyaeni. V and Vidhi Bhatt, “Lok Adalats and Permanent Lok Adalats,” available at:
http://www.legalservices.com (last visited on October 12, 2016).
24
Ibid.
25
Ibid.
26
M.R. Saxena “Legal Aid Advice Scheme and Lok Adalat”, 105 AIR (1986).
27
Ibid.

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a single day either in traditional court premises or in universities class rooms or in other
public or private suitable places.
The procedure adopted for the conduct of the working of the Lok Adalats is altogether
different from the procedure followed in the traditional courts. There are no pecuniary or
territorial limitations as noticed earlier. Further, there are no well-defined and demarcated
areas where these courts are to exercise their capabilities to settle the disputes. There is only a
single and uniform procedure to all civil and criminal cases. The procedure is very simple,
quick, flexible, informal and devoid of all technicalities and baffling formalities but moulded
in consonance with the exigencies of the situation.28
Lok Adalats are voluntary efforts of judiciary and the litigants. There is no compulsion to
settle the disputes. If the parties agree to decide their disputes, only then Lok Adalats come
into picture, to render help to them. However, the constitution and the composition of Lok
Adalats varies from place to place, depending on the quantum and nature of cases.
Sometimes, these Adalats are presided over by retired High Court Judges and District Judges.
Public can also participate in it but they must be persons of status and experience. They are
required to possess the patience, tact, intelligence and gentle persuasiveness needed for
dealing with the disputants and bringing them round the settlement in the spirit of give and
take. Presence of lawyer is not required and is not a must. They are, however, welcomed and
not debarred from attending the Lok Adalats.29
The process of negotiation usually starts when both the parties come before the Lok
Adalat. The negotiation is assisted by the volunteers, advocates of both the parties and judges
of the Adalat. They interview the parties and assess the scope of settlement acceptable to
them. Once the settlement is arrived at, it is reduced to black and white on the spot and
parties voluntary agree to be bound by the decision of the Lok Adalat and the signature of the
parties are obtained.30 Finally, this agreement is ratified by the respective judges of the local
courts where the case was pending and accordingly a consent decree is passed.
Thus, the Lok Adalats are very helpful in resolving amicably because there is neither a
cumbersome procedure like that of conventional courts nor evidence is needed or recorded
nor the presence of a lawyer is necessary.31
Lok Adalats resolve cases at pre –trial and in-trial level. Most of the cases decided by
them are related to accidents claims, matrimonial reliefs, small claims for compensation for
28
Supra note 2.
29
Ibid.
30
Supra note 22.
31
Supra note 7.

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land acquisitions claims, wages claim, railways claim, claims relating to goods, municipal
claims, compoundable offences, traffic offences, etc. 32
Despite numerous benefits of Lok Adalats, justice has become a distant reality and remote
dream due to huge arrears of cases with which our Judiciary is confronted at different
levels.33 This necessitates the adoption of peaceful and amicable methods of conciliation with
the hope to maintain peace and amity in the society.
Therefore, it is the result of social philosophy of judges, jurists and eminent scholars that
judiciary has entered a new alternative for settlement of disputes in the form of Lok Adalats
which will not only retrieve the work load on the regular courts, but also go a long way in
settling disputes outside the forum of courts.

32
K.M.H Rayyappa, “Lok Adalats: Objectives, pre-requisites, strategies and organization,” 711 Ind Bar Rev 14:4
(1987).
33
Neela Kantho Das, “Restructuring of Judicial Administration in Orissa”, 132 AIR (1991).

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CHAPTER-II
HISTORICAL
BACKGROUND

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2.1. HISTORY OF LOK ADALAT IN INDIA


2.1.1. Evolution of the concept-
Like the zero, the concept of Lok Adalat (Peoples’ Court) is an innovative Indian
contribution to the world jurisprudence. The institution of Lok Adalat in India, as the very
name suggests, means, People’s Court. “Lok” stands for “people” and the vernacular
meaning of the term “Adalat” is the Court. 34
India has a long tradition and history of such methods being practised in the society at
grass roots level. These are called Panchayat and are widely used in India for resolution of
disputes both commercial and non-commercial.35 Other alternative methods being used are
Lok Adalat (People’s Court), where justice is dispensed summarily without too much
emphasis on legal technicalities. It has been proved to be a very effective alternative
to litigation. Lok Adalat is one of the fine and familiar forums which has been playing
an important role in settlement of disputes. The salient features of this form of dispute
resolution are participation, accommodation, fairness, expectation, voluntariness,
neighbourliness, transparency, efficiency and lack of animosity.
This is the system which has deep roots in Indian legal history and its close allegiance
to the culture and perception of justice in Indian ethos.
The history of the evolution of Lok Adalats, popularly known as people’s court goes
back to Vedic times when the kings, in return for taxes paid to him by the people performed
the duty of judge.36 The Vedic king wielded authority as the head of the judiciary and
claimed himself as the upholder of Dharma of law. The judicial powers of the king
swallowed with the passage of time and he started delegating his judicial authority to his
royal officers who were the member of village assembly known as the Sabha. Normally it
was the Sabha or the popular village assembly rather than the king who tried to arbitrate
when it was feasible to do so. 37
There were functioning two seats of courts simultaneously, viz the royal court and
popular court i.e lok Adalat. With the expansion of royal powers after 600 B.C, subordinate

34
Supra note 12.
35
Supra note 2.
36
Manzoor Elahi, “Lok Adalat System in India,” available at:
http://www.academia.edu/3296008/ (Last visited on October9, 2016).
37
Prafull, “Lok adalat,” available at:
http://www.ias.org.in (Last visited on October9, 2016).

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royal courts began to be constituted for important towns and cities which were often located
in the headquarters of terriritorial division like Sthana. Dronamukha and Kharvatika. In
addition to these royal courts, there were no. of popular courts in the ancient Indian polity.
Though the ancient Indian polity was a highly centralized one but it left a number of disputes
to be decided by these unofficial courts.38
To reiterate, the lok Adalats i.e., popular courts or people’s courts were first
mentioned in Yajnavalkya Smriti. He mentions three types of popular courts, viz. (a) Puga,
(b) Sreni, and (c) kula.39 P.V. Kane is of the view that Puga, Sreni, and kula were arbitration
tribunals like modern Panchayats or the lok Adalats of today.
The judges of these popular courts had office either by election or by inheritance
according to local custom. There was a well-established hierarchy of the popular courts, the
highest being the court of Gana and the lowest on the ladder was the Kula court. The Sreni
court was in between the two.
2.1.2. Powers and Functions of People’s Court in ancient times
The authoritative sources disclosed that these courts had the authority to decide civil
and criminal cases accept those involing trail for an offence committed with violence i.e
Sahasna.40 They had no authority to administer sentences of fines and corporal punishment.
The matter of this nature had to go before the king, who alone had the power to execute such
sentences if it met with his approval.41 Besides, sahasna matters, the popular courts were
almost autonomous in their powers of investigation and the decision of the disputes in their
own jurisdiction.42
Though the popular court where essentially non official, they had still the royal
authority behind them and were sanctioned by the king. The decisions of these courts were
authoritative in nature and the government was bound to execute their decrees because the
state had delegated these powers to them. The govt. had a considered policy that these
popular courts should flourish, it refuse to entertain any suit except in appeal against their
decisions.43

38
Supra note 36.
39
Ibid.
40
Supra note 2.
41
Ibid.
42
Ibid.
43
Supra note 36.

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The people’s courts were empowered to inflict punishment44 on condemners of law by
imposing fines or awarding imprisonment, banishment depending in the nature of cases
decides by them. Fines, mutilation and death sentence were in vogue. Fines were most
common. Those sentenced to imprisonment were often made to work on roads and in public
places, so that there should be a deterant effect. 45
2.1.3. Judicial Procedure of People’s court in ancient times-
The whole judicial proceeding was divided into four main heads.
1. The plaint (Bhasa Pada or Pratijna)
2. The reply (or written statement)
3. The proof (or evidence on behalf of the plaintiff and the defendant i.e Kriya Pada or
Sadhna)
4. The decision (or judgment) (Nirnaya)
This concept is, now, again very popular and is gaining historical momentum.
2.2. Post- Independence era of Lok Adalats in India-
After independence, the Lok Adalats were not constituted under specific rules and regulations
made under the legislations. The evolution of the structure of Lok Adalats has been a gradual
process and the founders of the institution have not attached much importance to this aspect
because their mind remained totally absorbed with the idea of resolving the disputes of the
local people speedily and save their time, energy and money so far as possible. 46 Lok Adalat
are held generally, at public places where all the people presented, participate and persuade
the disputants to arrive at a compromise, by following the principles of justice, truth(Satya),
equity and fairness. This kind of procedure is a unique symbol of our culture and values
Camps of Lok Adalat were started initially in Gujarat in March, 1982 47 and now it has
been extended throughout the Country. The evolution of this movement was a part of the
strategy to relieve heavy burden on the Courts with pending cases. The reason to create such
camps were only the pending cases and to give relief to the litigants who were in a queue to
get justice.
Lok Adalat can be said to be the extension of our traditional Nyaya Panchayats
with some modification in its functioning and characteristics. However, the modern
version of Lok Adalat arose out of the concern expressed by the Committees set up to

44
Eg, In early times the punishment for the murder of a Brahmana was a thousand cows, for that of a
Kshatriya five hundred cows, for that for Vaisya hundred cows and for that of a sudra only ten cows.
45
Supra note 36.
46
Supra note 3.
47
The first Lok Adalat was held on March 14, 1982 at Junagarh in Gujarat the land of Mahatma Gandhi.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
report on organizing legal aid to the poor and the alarm generated by judicial
circle on the mounting arrears of cases pending for long at different levels in the Court
system. 48
The setting up of the Committee for Implementing Legal Aid Scheme (CILAS)
by the Union Government in 1980 under the Chairmanship of Mr. Justice P.N.
Bhagwati and later on under the chairmanship of Mr. R.N. Misra gave a future
impetus to the legal aid movement in general and the concept of legal aid camps and
Lok Adalat in particular. 49

48
Supra note 3.
49
Ibid.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

CHAPTER-III
SIGNIFICANCE OF
LOK ADALATS

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

3.1. Special Features of Lok Adalat


 One can get the dispute settled at the lowest possible cost and without delay and
withut even paying the court fee.
 One need not appoint an advocate, rather can personally appear before Lok Adalat.
 The conciliators, one of whom is a judge, will guide the parties in order to settle the
dispute amicably. 50
 Parties can compromise only when they are satisfied with the relief suggested by the
conciliators. 51
 Disputes can be brought before the Lok adalatsdirectly instead of going to a regular
court first and then to the Lok Adalat. 52
 There is no strict application of procedural law and Evidence Act while assessing the
merits of the claim by the Lok Adalat. 53
 Generally the judgment rendered in Lok Adalat is final and is not appealable. It is
binding on both the parties and has the same force as the judgments rendered by the
Civil Court.54
 In order to get the judgment of Lok Adalat executed, Execution Petition can be filed
in in the Civil Court.
 If a case pending before the court is settled in Lok Adalat, the court fees paid in that
case is refunded partially or fully as per law.55

3.2. Why Lok Adalats?


 Judicial justice is much despised in our country by the common man because of the
ruinous cost of litigation, far too technical legal process, prolonged litigation and
inordinate delay in disposal of cases.56
 This form of redressal is needed for enabling the common people to ventilate their
grievances against the state agencies or against other citizens and to seek a just
settlement if possible.57

50
Supra note 3.
51
Ibid.
52
Supra note 12 at 6.
53
Ibid.
54
Ibid.
55
Ibid.
56
Supra note 23.
57
Ibid.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
 The parties are saved from extremely technical court procedures, which are followed
in a regular court.58
 They are saved from protracted litigation, anxiety, bitterness apart from the saving of
expenses of court fees and other expenses, which they are likely to incur in future
litigations by way of further appeal etc.59
 The organization of Lok Adalat is informal and flexible. Apart from some minimum
requirements in respect of procedures and approaches, the rest of the exercise is
simple and varied as the nature of the problems and the culture of the community
demand.60
 The following types of cases can be brought before the Lok Adalats:
 Pre-litigation cases i.e. the disputes, which have not yet gone to the law courts.
 Pending cases i.e. the disputes, which have already gone to the law courts.61
Hence, in many respects, the scheme of Lok adalat is a boon to the litigant public, where they
can get their disputes settled fast and free of cost. It has thereby helped in emergence of
jurisprudence of peace in the larger interest of justice and wider sections of society.
On the contrary, there have been conflicting views too being expressed on the advisability of
the institution of lok adalats. But they are meant to supplement the judicial process rather
than to supplant it.
It is being said that when conciliation becomes the norm, people’s attitude to resort to
court will change. On the other hand, it is being suggested that with the giving of statutory
basis, the informality of lok adalat will disappear and every technicality that bogs down
regular courts will creep into the lok adalats and a parallel court system under a different
label may emerge.62
Further, the permanent lok adalats are conciliation-cum-arbitration tribunals to settle
disputes between selected public utility service and individuals. It appears that recourse to
these tribunals in preference to civil court is unlikely. Public utility services would rather
compel the private parties to have recourse to legal redress instead of, they themselves
seeking it and private parties likely to prefer civil courts, to these new institutions. In

58
Supra note 23.
59
Supra note 36.
60
Ibid.
61
Ibid.
62
Dr. Deepa P. Patil, “A Critical analysis on Lok Adalat in India,” 50 ISSN 3 (2015).

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
consequences, these new institutions might be of very little use in reducing the burden of
courts.63
There are various other loopholes which are discussed below:
1. Adjudication before a Lok Adalat is by consent, if one party does not agree, the case
goes back to the court. If there is no consent, there is no decision;
2. The procedure of Lok Adalat - organizing, conducting and awarding of Lok Adalat is
becoming rigid especially after the enforcement of the Legal Services Authorities Act,
1987;
3. The goal of the Lok Adalat is to affect a compromise but in mass scale disposal of
cases in Lok Adalats, it is difficult to expect that compromise settlements of mutual
benefits would be searched for;
4. The legislation has given the judiciary an almost exclusive role in organizing Lok
Adalat and directed the observance of norms the judiciary adhere to in adjudication.
There is little role for people especially trained in negotiation, mediation and
conciliation;
5. In the name of the speedy resolution of the disputes the fair interests of the parties are
sacrificed. The case of Manju Gupta vs. National Insurance Company64, demonstrates
the sad state of compromises and settlements in Lok Adalats denying the fair
minimum claims of the petitioners. In this case, the High Court observed, “In the
name of the speedy resolution of the disputes, the fair interest of the parties cannot be
sacrificed, more importantly when the petitioners are minors, insane and disabled”.
6. Another major drawback of Lok Adalats is that its emphasis is on a compromise or
settlement between the parties. If the parties do not arrive at any compromise, either
the case is returned to the court of law or the parties are advised to seek remedy in a
court of law. This causes unnecessary delay in the dispensation of justice.

63
Id.
64
(1994) ACC 242.

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However, after considering the pros and cons of the Lok Adalat system, it cannot be inferred
that the system is vague and it should be replaced rather the only need of the hour is to
modify the existing system to remove the obstacles in the way of proper dispensation of
justice when it comes to practically proceed a case under Lok Adalat.

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CHAPTER-IV
PROCEDURAL ASPECT

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

3.1. Procedure at Lok Adalat


The procedure followed at a Lok Adalat is very simple and short of almost all legal
formalism and rituals. The Lok Adalat is presided over by a sitting or retired judicial officer
as the chairman, with two other members, usually a lawyer and a social worker. It is revealed
by experience that in Lok Adalat it is easier to settle money claims since in most such cases
the quantum alone may be in dispute.65 Thus the motor accident compensation claim assets
are brought before the Lok Adalat and a number of cases were disposed of in each Lok
Adalat.
However, one important condition for Lok Adalats is that both parties in dispute
should agree for settlement through this mode and abide by its decision. Further, the role of
lawyers is crucial for understanding the concept of Lok adalats. It is, generally, said that the
lawyers frequently request for adjournments on the flimsiest of grounds which obviously
delay in the process of dispensation of justice. Therefore, in the Lok Adalat system, it is not
compulsory for lawyers to be appeared on behalf of their parties. The parties are free to settle
the matter on the basis of mutual consent. But lawyers are also not prohibited to appear
before a Lok Adalat. Lawyers have been showing a commendable sense of participative
cooperation in the endeavours aimed at holding successful sittings of Lok Adalat.66
When a case is referred from a court to Lok Adalat for settlement, the lawyers of the
concerned parties are under legal as well as moral obligation to participate in the Lok Adalat
proceedings. The appearance of lawyers before Lok Adalat are expected by the society to
demonstrate enough commitment to offer their expertise for the achievement and
advancement of the noble mission of Lok Adalat.67 Lawyers are helpful in drafting out the
terms of the compromise or settlement, a better marshalling and appreciation of the facts
which sometimes may be complex and persuading the parties for settlement of the dispute. 68
Therefore, the role of lawyers in the Lok Adalat is simply of advisory nature and help their
clients to arrive at a compromise through their sweet and sincere efforts.

65
Supra note 12 at 7.
66
D. K Sharma, “Lawyers and Lok Adalat,” AIR 2004 Jour 251.
67
Id. At 252.

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Further, a Lok Adalat has the jurisdiction to settle, by way of effecting compromise
between the parties, any matter which may be pending before any Court, as well as matters at
pre-litigative stage i.e. disputes which have not yet been formally instituted in any Court of

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
69
Law. Such matters may be civil or criminal in nature, but any matter relating to an offence
not compoundable under any law cannot be decided by the Lok Adalat even if the parties
involved therein agree to settle them.70
Further, Lok Adalats can take cognizance of matters involving not only those persons
who are entitled to avail free legal services but of all other persons also, be they women, men,
or children and even institutions.71 Anyone, or more of the parties to a dispute can move an
application to the Court where their matter may be pending, or even at pre-litigative stage, for
such matter being taken up in the Lok Adalat whereupon the Lok Adalat Bench constituted
for the purpose shall attempt to resolve the dispute by helping the parties to arrive at an
amicable solution and once it is successful in doing so, the award passed by it shall be final
which has as much force as a decree of a Civil Court obtained after due contest.72
In order to understand the procedure as to how a proceeding goes from one step to another in
a Lok adalat, it is essential to view the schemes made under Legal Services Authority Act
1987, in different aspects such as in respect of civil cases criminal cases.

3.2. Scheme relating to Civil Cases73


1) Every civil case is to be presented before the designated Lok Adalat according to the
amended provisions of C.P.C. The Lok Adalat may follow the procedure provided in
order 1 to 10 C.P.C. relating to parties of suit, frame of suit, institution of suits,
service of summons, pleadings, plaint, written statement, consequence of appearance
and non-appearance of parties and examination of parties.
2) On first date when case is presented before the Lok Adalat, the plaintiff may be asked
about what is his expectation or on” what term he would be able to compromise the
case. His answer is to be recorded, which may be useful for future negotiations with
the defendant.
3) The plaintiff should pay the process fees and file the copy of plaint according to the
number of defendants with the filling of plaint. The plaintiff shall also file all the
document.

69
Ibid.
70
Ibid.
71
Supra note 23.
72
Ibid.
73
This scheme is made under Legal Services Authority Act, 1987 to lay down a procedure for carrying out the
proceedings of a Lok Adalat in matters dealing with civil cases.

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4) The Court may issue a summons with a copy of plaint to the defendant.
5) When the defendant appear and file the written statement and the documents, the
Court shall examine both the parties as per the provisions of Order X Rule (2) C.P.C.
This provision is mandatory but are not being followed in all cases.74
6) The substance of the examination shall be reduced to writing by the Judge, and shall
form part of the record. The examination of parties is much more important to the Lok
Adalats as it would enable the jugde to know the real facts of the dispute.
7) At this stage the pleadings and documents have been filed. On the basis of pleadings
and documents, the questions may be asked to explore the possibility of settlement
8) After recording the statement, the Lok Adalat may conversant with the parties and
their pleaders about possible settlement. At this juncture the counselors of the Lok
Adalat may make an effort to convince the parties and help them in making decision.
9) Keeping in view the pleadings, documents, statements and observation of the parties,
the Lok Adalat may formulate the terms of compromise.
10) It may give them to the parties for their observation and after receiving the
observation of the parties the Lok Adalat may reformulate the terms of a possible
settlement.
11) The Court may invite the proposed compromise from both the parties. If both the
party reach at some settlement it may pass an award which may be signed by both the
parties and binding on them.
Here, it must be noted that in order to arrive at some settlement, the Court may postpone the
proceeding for future date but the case should not be adjourned for more than three dates.

3.3. Scheme regarding criminal cases75

74
Rule 2. (1) At the first hearing of the suit, the Court –
a. shall, with a view to elucidating matters in controversy in the suit, examine orally such of the
parties to the suit appearing in person or present in Court, as it deems fit; and
b. may orally examine any person, able to answer any material question relating to the suit, by
whom any party appearing in person or present relating to the suit, by whom any party
appearing in person or present in Court or his pleader is accompanied.
(2) At any subsequent hearing, the Court may orally examine any party appearing in person or
present in Court, or any person, able to answer any material question relating to the suit, by whom such party
or his pleader is accompanied.
Rule 3. The Court may, if it thinks fit, put in the course of an examination under this rule question suggested by
either party.
75
This scheme is made under Legal Services Authority Act, 1987 to lay down a procedure for carrying out the
proceedings of a Lok Adalat in matters dealing with criminal cases.

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1) After framing the charge, the criminal Court may transfer all the compoundable
criminal case to the Lok Adalat. In compoundable cases the charge is to be framed on
the first date after filing of challan.
2) The Lok Adalat shall issue a summons to the complainant or any other person who is
competent to compromise the case.
3) When the complainant comes before the Court he may be asked to state the realities
of incident and may also be asked whether he is ready for compromise. At this
juncture the Court, advocates and counselors of the Lok Adalat may negotiate with
the parties about composition. If the parties are ready to compromise, the Lok Adalat
shall acquit the accused from the charge
4) If even after a sincere effort the Court is of opinion that the compromise is not
possible, the Court shall send the record of the case with accused, complainant and
other witnesses present in the Court, to the Court having jurisdiction for trial on the
same day. If it is possible for the trial Court, it shall record the statement of the
complainant and other witnesses on same day otherwise fix another date and proceed
according to law.
The successfulness of these schemes depends much more on the competency of
presiding Judge of the Lok Adalat. His personality and legal knowledge play an important
role in the process of settlement. His judicious advice reduce the passion of parties and the
fighting parties may come down and a settlement may be possible. Therefore the services of
high caliber Judges are required. So the good and experienced Judges of the district may be
deputed to the designated Lok Adalats.
3.4. Scheme regarding pre-trial litigation
Section 19 (5) (2) of the Legal Services Authorities Act provides that a Lok Adalat
have also jurisdiction in a matter which have not come before a Court. It means that a person
may come before a Lok Adalat even before filing a suit. In the Legal Services Authorities Act
and the scheme of Lok Adalat made there under prescribes no procedure for pre-trial
litigation. Hence, regarding pre-trial litigation a Lok Adalat may adopt following procedure:
If a person comes before a Lok Adalat without filing a suit, Lok Adalat may examine him
about his grievance. It may require to file all the documents. If the Lok Adalat think that there
is a prima-fact case to call the opposite party it may summons the defendant to appear in
person and file all the documents. When he appears, the court shall examine him. After
examining both the parties, the Court find out what is the dispute between the parties and on
what point it may be resolved. If both the parties agree and settle their dispute the Court shall

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
pass an award accordingly which is binding on them. If even after a sincere effort, the dispute
is not possible to be resolved it may advice “the parties to go to the proper Court for seeking
remedies or give them the correct advice that how they can resolve their dispute and what are
their rights and liabilities.
3.5. Scheme relating to pending cases
1) All the pending cases in which the written statement has been filed are to be send to
the Lok Adalat.
2) The Lok Adalat shall examine both the parties as per the provisions or Order 10 CPC
with a view to find out the possibility of settlement.
3) With the help of pleadings, documents and statement of both parties or other persons,
the Lok Adalat shall formulate the terms of compromise and hand over them to the
parties for their observation. The presiding judge and the private members of the Lok
Adalat may take active part in negotiations between the parties. They may be helpful
to give a correct advice about the rights and liabilities of the parties and pro and cons
of the proposed settlement. They may also advice the parties as to what they may get
after adjudication and much or less, what they are getting by the proposed settlement.
4) If the parties agrees, the Lok Adalat may pass an award which may be signed by the
parties and binding on them otherwise if they do not come at any settlement.
5) It may send the record of the case to the concerned Court and direct the parties to
appear before it. The concerned Court may proceed from the stage from which the
case has been sent to the Lok Adalat.
Although the above scheme is a drastic one as it transfers the original jurisdiction of
civil Court from ordinary law Court to the Lok Adalat, but in the scheme, a Lok Adalat
would also be governed by rules prescribed in Orders 1 to 10 of CPC, 1908. It shall also
follow the other relevant rules of C.P.C. The designated Lok Adalat is also presided by a
judicial member, therefore, there is no change in transferring the jurisdiction. From
presentation of suit till examination of parties under Order 10, the procedure followed by the
Lok Adalat would be the same as followed by the ordinary law Courts.76
Therefore the scheme provides no change in the process of trial and create no
hardship in implementing it. Moreover, the spirit of the above scheme is to involve the
concept of Lok Adalat in a real sense and a Lok Adalat would become a Court of public in its
reality.

76
Supra note 3.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
3.6. Scheme for Mobile Legal Services-cum- Lok Adalat
Recently, the Maharashtra State Legal Services Authority has introduced an
innovative scheme named as, "Scheme for Mobile Legal Services-cum- Lok Adalat ". It
provides for organization of Mobile Lok Adalat.
The idea behind this concept of mobile Lok Adalat has recognized the fact that, still
today the poor, needy and marginalized sections of our society face many difficulties to
approach the Court of law for enforcement of their rights or redressal of their grievances and
so the Legal Services and Lok Adalat itself would approach them at their door step. Through
this scheme, the trained and experienced judicial officers, social activists, Law students etc.
in collaboration with concerned District Legal Services Authority, are able to visit every nook
and corner of the villages including remote tribal areas, slum Lok Adalats to resolve disputes
amicably and instantly.
Thus, the concept of Lok Adalat aims at giving speedier justice at the door steps of
the parties by way of associating the community representatives and at lesser costs. The
endeavor is to enliven the Constitutional goals of 'equal and effective access to justice’.

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CHAPTER-V
LEGISLATIVE ASPECT

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

5.1. LOK ADALAT: AN INTEGRAL PART OF CONSTITUTION


The concept of Lok Adalat is an integral part of the Indian Constitutional Scheme
mentioned in Preamble, Part III and Part IV of the Constitution. The Constitution mandates
not only to impart justice77 in its legal sense, but also social, economic, and political sense.78
Hence, the institution of Lok Adalat has been developed in the process of implementation of
commitments of the Constitution in order to mitigate not only the problem of justice delays
resulting from adjudication of even ordinary disputes by the normal courts procedure but also
to dispense less expensive justice quickly with the conciliatory efforts. Therefore, Lok Adalat
is a way to achieve the constitution goals enshrined in different provisions.79
5.2. Legislation Pertaining to Lok Adalat
Ever since 1987, Lok Adalats have been given statutory recognition. Whereas prior to
1987, Lok Adalats had no legal structure but was organised voluntarily by organisations on
the principle of nediation.80 The Legal Services Autorities Act, 1987, pursuant to the
constitutional mandate in Article 39-A81 of the Constitution of India, contains various
provisions for settlement of disputes through Lok Adalat. Thus, the ancient concept of Lok
Adalat has, now, statutory basis. It is an Act to constitute legal services authorities to provide
free and competent legal services to the weaker sections of the society to ensure that
opportunities for securing justice are not denied to any citizen by reason of economic or other
disabilities, and to organise Lok Adalats to secure that the operation of the legal system
promotes justice on a basis of equal opportunity. 82
In 2002, Parliament of India amended the Legal Services Authorities Act, 1987
requiring establishment of permanent Lok Adalats for public utility services. The amended
Act provides for setting up of a “Permanent Lok Adalat”83 which can be approached by any
party to a dispute involving “public utility services” which have been defined under Section

77
Equal justice and free legal aid is a directive principle of state policy imbibed in Article 39A which is
particularly concerned with the need of qualitative and effective justice delivery mechanism.
78
Preamble to Indian Constitution, 1950.
79
See Constitution of India, Preamble, Articles. 14, 21, 38, 39A and 40.
80
Ashish A. Ahuja, “Lok Adalats, a Practical examination,” available at:
http://manupatra.org (Last visited on October 26, 2016).
81
Article 39A provides that State shall secure that the operation of the legal system promotes justice on the
basis of equal opportunity, and shall in particular, provide free legal aid by suitable legislation or schemes or in
any other way, to ensure that opportunities for securing justice are not denied to any citizen by reason of
economic or other disability.
82
See Statement of Object of Legal Services Authorities Act, 1987.
83
Section 22B(1) under Chapter VI-A of the Legal services Authority Act, 1987 provides for establishment of
permanent Lok Adalats in respect of one or more public utility services.

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22A(b) of the Legal services Authority Act, 1987 to include transport services for the
carriage of passengers or goods by air, road or water; postal, telegraph or telephone services;
insurance service, as also services in hospital or dispensary, supply of power, light or water to
the public, besides systems of public conservancy or sanitation.
Any civil dispute with a public utility service and where the value of the property in
dispute does not exceed Rupees one million (about US $ 2200); or any criminal
dispute which does not involve an offence not compoundable under any law, can be taken up
in the “Permanent Lok Adalat”. 84
An important feature of this amendment is that after an application is made to the
Permanent Lok Adalat, no party to that application can invoke jurisdiction of any Court in the
same dispute. Such disputes involving public utility services shall be attempted to be settled
by the Permanent Lok Adalat by way of conciliation and failing that, on merit, and in doing
so the Permanent Lok Adalat shall be guided by the principles of natural justice, objectivity,
fair play, equity and other principles of justice without being bound by the Code of Civil
Procedure and the Indian Evidence Act.
Besides the Legal Services Authorities Act, there have been several other changes in
the law in recent times and one of the most important being the amendment in Code of Civil
Procedure. Section 8985 of the Code of Civil Procedure as amended in2002 has opened the
scope for introduction of conciliation, mediation and pre-trial settlement methodologies.
Further, a set of model rules have been framed by the Committee headed by Justice
Jagannadha Rao, Chairman, Law Commission of India under the directions of the Supreme
Court of India. Once these rules have been adopted by all the High Courts, funds will need to
be sanctioned to meet the need for providing the requisite infrastructure and for employment
of mediators and conciliators as part of the justice-delivery system. This would drastically
bring down the pendency of cases by accelerating disposal of such cases.86
The mediators and conciliators shall have to be trained so as to acquire professional
expertise in the art of mediation and conciliation in India.87
5.2.1. Significant Provisions of Legal Services Authority Act, 1987

84
Proviso II to Section 22 C of legal services Authority Act, 1987.
85
Section 89 of CPC, 1908 as amended in 2002 provides for settlement of disputes outside the Court. Also, the
constitutional validity of amendments made to Section 89 of the Code of Civil Procedure incorporating
Alternative Disputes Resolution methods have been upheld by the Supreme Court of India in Salem Advocate
Bar Association, Tamil Nadu v. Union of India, (AIR 2005 SC 189).
86
Supra note 3.
87
Ibid.

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Section 19- Organisation of Lok Adalats
1) Every State Authority or District Authority or the Supreme Court Legal Services
Committee or High Court Legal Services Committee or Taluk Legal Services
Committee, as the case may be, can organize Lok Adalats at such intervals and places
as may be deemed fit.
2) Every Lok Adalat so organized shall consist of:
a) Serving or retired judicial officers,
b) Other persons, as may be specified.
3) The experience and qualification88 of “other persons” in a Lok Adalat conducted by
Supreme Court Legal Services Committee shall be prescribed by the Central
Government in consultation with the Chief Justice of India.
4) The experience and qualification of “other persons” mentioned in clause (b) but where
Lok Adalats are other than those conducted by Supreme Court Legal Services
Committee shall be prescribed by the State Government in consultation with the Chief
Justice of High Court.89

Section 19- Jurisiction of Lok Adalats


According to Section 19(5) of the Act- A Lok Adalat shall have jurisdiction to determine and
to arrive at a compromise or settlement between the parties to a dispute in respect of:
i. any case pending before; or
ii. any matter which is falling within the jurisdiction of, and is not brought before, any
court90 for which the Lok Adalat is organised.

88
At present, Rule 13 of the National Legal Services Authorities Rules, 1995 prescribes such experience and
qualifications as:
a) A member of the legal profession; or
b) A person of repute who is specially interested in the implementation of the Legal Services Schemes
and Programmes; or
c) An eminent social worker who is engaged in the upliftment of weaker sections of people, including
Scheduled Castes, Scheduled Tribes, women, children, rural and urban labour.
89
At present, Rule 13 of the Kerala State Legal Services Authorities Rules, 1998 prescribes the experience and
qualifications as:
1. Eminent social workers who are engaged in the upliftment of Scheduled Castes, Scheduled Tribes,
women, children, rural and urban labour and other weaker sections of the society;
2. Advocates of standing; or
3. Persons of repute who are especially interested in the implementation of the Legal Services Schemes
and programmes.
90
According to Section 2 (1) (aaa) of the Act “Court means a civil, criminal or revenue court and includes any
tribunal or any other authority constituted under any law for the time being in force, to exercise judicial or
quasi-judicial functions.”

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iii. The Lok Adalat can compromise and settle even criminal cases, but only those which
are compoundable under the relevant laws.

Section 20: Reference of Cases


Section 20 of the Act says:
A. On Application:
i. When all the parties to the case agree for referring the case to Lok Adalat, or
ii. When one of the party to the case makes an application to court, praying to refer the
case to Lok Adalat and the court is prima facie satisfied that there are chances for
settlement
B. Suo Moto:
Where the court is satisfied that the matter is an appropriate one to be taken cognizance of, by
the Lok Adalat.
Then, the court shall refer the case to the Lok Adalat, after giving a reasonable opportunity
for hearing to all the parties.
Further, the Authority or Committee organising Lok Adalat may, on application from any
party to a dispute, refer the said dispute to Lok Adalat, after giving a reasonable opportunity
for hearing to all the parties.
 Lok Adalat shall proceed to dispose of a case refereed to it expeditiously.
 Shall be guided by principles of law, justice, equity and fair play.
 Shall yearn to reach a settlement or compromise between parties.
 When no compromise or settlement is accomplished, the case is to be returned to the
court which referred it. Then the case will proceed in the court from the stage
immediately before the reference.

Section 21 Award of Lok Adalat


After the agreement is arrived by the consent of the parties, award is passed by the
conciliators. The matter need not be referred to the concerned Court for consent decree. The
Act provisions envisage as under:
1. Every award of Lok Adalat shall be deemed as decree of Civil Court.
2. Every award made by the Lok Adalat shall be final and binding on all the parties to
the dispute.
3. No appeal shall lie from the award of the Lok Adalat.

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Section 22 Powers of Lok Adalat or Permanent Lok Adalat
A Lok Adalat has the following powers:
(1) The Lok Adalat shall have the powers of a civil court under the Code of Civil Procedure,
1908, while trying a suit, in respect of the following matters.
a) Power to summon and enforce the attendance of any witness and to examine him/her
on oath.
b) Power to enforce the discovery and production of any document.
c) Power to receive evidence on affidavits,
d) Power for requisitioning of any public record or document or copy thereof or from
any court.
e) Such other matters as may be prescribed.
(2) Every Lok Adalat shall have the power to specify its own procedure for the determination
of any dispute coming before it.
(3) All proceedings before a Lok Adalat shall be deemed to be judicial proceedings within the
meaning of Sections 193, 219 and 228 of IPC
(4) Every Lok Adalat shall be deemed to be a Civil Court for the purpose of Sec 195 and

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CHAPTER-VI
PERMANENT LOK
ADALATS

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

6.1. PROVISIONS DEALING WITH PLAs.


The institution of Permanent Lok Adalats which is quite different from ordinary
Lok Adalats was recognised in the year 2002 by way of an amendment in Legal services
Authority Act, 1987 by way of insertion of Chapter VI-A under the head of Pre-
Litigation Conciiation and Settlement.
The provisions under this chapter are clubbed under Section 22(A to E).
Section 22A- Definitions for Chapter VIA 91
It says that for the purposes of sections 22 and 23, unless the context otherwise requires,-

(a) " Permanent Lok Adalat" means a Permanent Lok Adalat established under sub- section
(1) of section 22B;

(b) " public utility service" means any-

(i) transport service for the carriage of passengers or goods by air, road or water; or

(ii) postal, telegraph or telephone service; or

(iii) supply of power, light or water to the public by any establishment; or

(iv) system of public conservancy or sanitation; or

(v) service in hospital or dispensary; or

(vi) insurance service, and includes any service which the Central Government or the State
Government, as the case may be, may, in the public interest, by notification, declare to be a
public utility service for the purposes of this Chapter.

22B. Establishment of Permanent Lok Adalats.

(1) Notwithstanding anything contained in section 19, the Central Authority or, as the case
may be, every State Authority shall, by notification, establish Permanent Lok Adalats at such
places and for exercising such jurisdiction in respect of one or more public utility services
and for such areas as may be specified in the notification.

91
Chapter VIA was added in 2002 by an amendment to the Legal Services Ayuthority Act, 1987 to incorporate
provisions regarding permanent Lok Adalats.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
(2) Every Permanent Lok Adalat established for an area notified under sub- section (1) shall
consist of-

a) a person who is, or has been, a district judge or additional district judge or has held
judicial office higher in rank than that of a district judge, shall be the Chairman of the
Permanent Lok Adalat; and
b) two other persons having adequate experience in public utility service to be
nominated by the Central Government or, as the case may be, the State Government
on the recommendation of the Central Authority or, as the case may be, the State
Autho ity, appointed by the Central Authority or, as the case may be, the State
Authority, establishing such Permanent Lok Adalat and the other terms and conditions
of the appointment of the Chairman and other persons referred to in clause (b) shall be
such as may e prescribed by the Central Government.

22C. Cognizance of cases by Permanent Lok Adalats

(1) Any party to a dispute may, before the dispute is brought before any court, make an
application to the Permanent Lok Adalat for the settlement of dispute:

Provided that the Permanent Lok Adalat shall not have jurisdiction in respect of any
matter relating to an offence not compoundable under any law:

Provided further that the Permanent Lok Adalat shall also not have jurisdiction in the
matter where the value of the property in dispute exceeds ten lakh rupees:

Provided also that the Central Government, may, by notification, increase the limit of
ten lakh rupees specified in the second proviso in consultation with the Central Authority.

(2) After an application is made under sub- section (1) to the Permanent Lok Adalat, no party
to that application shall invoke jurisdiction of any court in the same dispute.

(3) Where an application is made to a Permanent Lok Adalat under sub- section (1), it-

(a) shall direct each party to the application to file before it a written statement, stating
therein the facts and nature of dispute under the application, points or issues in such dispute
and grounds relied in support of, or in opposition to, such poin s or issues, as the case may be,
and such party may supplement such statement with any document and other evidence which
such party deems appropriate in proof of such facts and grounds and shall send a copy of

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
such statement together with a copy of such ocument and other evidence, if any, to each of
the parties to the application;

(b) may require any party to the application to file additional statement before it at any stage
of the conciliation proceedings;

(c) shall communicate any document or statement received by it from any party to the
application to the other party, to enable such other party to present reply thereto.

(4) When statement, additional statement and reply, if any, have been filed under sub- section
(3), to the satisfaction of the Permanent Lok Adalat, it shall conduct conciliation proceedings
between the parties to the application in such manner as it thin s appropriate taking into
account the circumstances of the dispute.

(5) The Permanent Lok Adalat shall, during conduct of conciliation proceedings under sub-
section (4), assist the parties in their attempt to reach an amicable settlement of the dispute in
an independent and impartial manner.

(6) It shall be the duty of every party to the application to cooperate in good faith with the
Permanent Lok Adalat in conciliation of the dispute relating to the application and to comply
with the direction of the Permanent Lok Adalat to produce eviden e and other related
documents before it.

(7) When a Permanent Lok Adalat, in the aforesaid conciliation proceedings, is of opinion
that there exist elements of settlement in such proceedings which may be acceptable to the
parties, it may formulate the terms of a possible settlement of the dispu e and give to the
parties concerned for their observations and in case the parties reach at an agreement on the
settlement of the dispute, they shall sign the settlement agreement and the Permanent Lok
Adalat shall pass an award in terms thereof and fur ish a copy of the same to each of the
parties concerned.

(8) Where the parties fail to reach at an agreement under sub- section (7), the Permanent Lok
Adalat shall, if the dispute does not relate to any offence, decide the dispute.

22D. Procedure of Permanent Lok Adalat

The Permanent Lok Adalat shall, while conducting conciliation proceedings or deciding a
dispute on merit under this Act, be guided by the principles of natural justice, objectivity, fair

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
play, equity and other prin iples of justice, and shall not be bound by the Code of Civil
Procedure, 1908 (5 of 1908 ) and the Indian Evidence Act, 1872 (1 of 1872 ).

22E. Award of Permanent Lok Adalat to be final

(1) Every award of the Permanent Lok Adalat under this Act made either on merit or in terms
of a settlement agreement shall be final and binding on all the parties thereto and on persons
claiming under the.

(2) Every award of the Permanent Lok Adalat under this Act shall be deemed to be a decree
of a civil court.

(3) The award made by the Permanent Lok Adalat under this Act shall be by a majority of the
persons constituting the Permanent Lok Adalat.

(4) Every award made by the Permanent Lok Adalat under this Act shall be final and shall
not be called in question in any original suit, application or execution proceeding.

(5) The Permanent Lok Adalat may transmit any award made by it to a civil court having
local jurisdiction and such civil court shall execute the order as if it were a decree made by
that court.'.

6.2. EFFECT OF PLAs.

This system of PLA will certainly, prove to be very effective, litigant-friendly and less-
expensive mechanism to resolve certain serious disputes. As Public Utility Services are
rendered mainly by corporate bodies, this virtually will be a forum for ordinary men and
women to ventilate their grievances against such corporate bodies. In the changing economic
scenario of the country where insurance, communication and other services are thrown open
to corporate giants, it is all the more necessary to provide for cost-effective and delay-free
tools for resolution of disputes.92 PLA is a structured clubbing conciliatory mode with certain
features of arbitration to arrive at decisions under given circumstances.

However, there is sharp criticism against this machinery both in its constitution and its
functioning especially from lawyers. The main opposition against the amendment is based on
the following viz.

92
Supra note 23.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
(1) with regard to the constitution of PLA;

(2) insofar as PLA is given the power to decide a dispute unlike the ordinary Lok Adalats
(LA) envisaged as per Section 19 of the Act which only conciliates the dispute; and

(3) absence of provision for appeal against the decision of PLA.

On the other hand, it is submitted that there is no basis for these criticisms. Although it is true
that the members of PLA shall be nominated by the respective Governments. But such
nomination shall be, in terms of Section 22-B(2)(b) of the Act, on recommendation by the
Legal Services Authority concerned. After such nomination, they have to be appointed by the
Legal Services Authority concerned. So there is no chance for the Government's nominee
getting appointed.

There is yet another criticism that the persons so appointed will not have legal
background. But, even in other alternative dispute redressal forums, along with persons with
judicial background experts, experienced persons without legal background are also
appointed. 93

The second criticism is with regard to the functioning of PLA insofar as it is given the
power to decide a dispute when the parties do not agree for a settlement. While deciding the
dispute, it is made clear that the provisions of the Code of Civil Procedure and the Indian
Evidence Act will not have application.94

In other words, the determination or decisions will be in a summary manner. As already


mentioned above, PLA is given ample power in the matter of reception of evidence,
examination of witnesses etc. the power that a civil court has. A decision is possible only in
those cases where in the opinion of the Permanent Lok Adalat "there exist elements of
settlement. In such cases, PLA formulates the terms of a possible settlement and gives such
terms to the parties concerned for their observations.95 These observations will be considered
on the basis of evidence produced by the parties. If they do not come to a settlement, PLA
shall decide the dispute. That means, PLA is not given the power to decide every dispute

93
Supra note 23.
94
Ibid.
95
Supra note 3.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
96
coming before it. Only those disputes where there exist elements of settlement can be
decided by the Permanent Lok Adalat. The decision or the opinion of the Permanent Lok

Adalat as to whether there exist elements of settlement is also a matter which can be
subjected to judicial review under Article 226 of the Constitution of India. Therefore, there
shall be a check in that respect as well.

It is further ensured in the Act that while deciding the dispute on merit, PLA shall be
guided by the "principles of natural justice, objectivity, fair play, equity and other principles
of justice". Thus, a fair procedure is always envisaged. Therefore, there is no reason for any
criticism on the power granted to PLA to decide the dispute in the event of a settlement not
being arrived at despite the existence of an element of settlement.

Further, it cannot be said that there is no appeal against the decision of PLA. So far as
the ordinary Lok Adalats (LA) are concerned which is in existence even prior to the
amendment and is still being continued no appeal will lie against an award of that Lok
Adalat.97 The ordinary LA adopts only a conciliatory method and does not decide a dispute.
Therefore, disputes are settled on consent of the parties. When a dispute is settled based on
consent, no appeal need lie from any such order or award even if there is a settlement in
court. Under the civil procedure law also no appeal shall lie from a decree passed on consent
of the parties. This is the reason the Act declares that "no appeal shall lie to any court against
the award" of ordinary Lok Adalat (LA) envisaged in Chapter VI of the Act.

But the award of Permanent Lok Adalat (PLA) envisaged in the newly introduced Chapter
VI-A is different. If it is an award upon consent of parties and is as a result of compromise,
necessarily, nobody will think of an appeal.

But, when there is a decision by PLA, as the parties did not agree for a compromise, it is
possible that the aggrieved party may think of an appeal. Every award of the Permanent Lok
Adalat, whether it is based on consent of the parties, or on compromise or upon the decision,
"shall be deemed to be a decree of a civil court". Thus the decision taken by PLA will have

96
Supra note 23.
97
Ibid.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
all the attributes of a decree of a civil court. 98 Although it is true that there is no provision for
appeal in case of award of PLA but appeal is not also expressly excluded. It is not stated

anywhere in the Act that an award of a PLA shall not be called in question in any appeal 99, as
is done in the case of the award of an ordinary Lok Adalat (LA) in Section 21(2) of the Act.

Hence, the manifest difference in the provisions relating to the awards of PLA and LA is that
an appeal is possible against an award of PLA in terms of Section 96(1) of the Code of Civil
Procedure, when it is not specifically barred by the Legal Services Authorities Act, 1987 and
as the award has all the attributes of a decree of a civil court. Even otherwise, the jurisdiction
under Article 226 of the Constitution of India cannot be ruled out, being one among the basic
features of the Constitution of India. Therefore, the criticism that the award of PLA cannot be
called in question in a higher forum has no force.

Moreover, PLA is a machinery to settle or decide disputes relating to public utility services.
Further, in the changing economic scenario, the establishments rendering public utility
services, enumerated in the Act might be run by corporate sectors. Common people may have
claims against these corporates. So, if they are given a speedy and inexpensive remedy to
resolve their grievances by means of PLAs, it should be welcomed.

98
Every decree, unless it is appealed against and so long as it is allowed to continue, will be final and binding
on the parties. Same is the case of an award of PLA.
99
When the award of PLA is treated as a decree of civil court and as it is not otherwise provided in the Legal
Services Authorities Act that no appeal shall lie from such award, necessarily, that being deemed a civil court
decree, an appeal shall lie from that decree.
Necessarily, an appeal shall also lie to a court depending upon the quantum of the amount involved in the
decree or to the High Court being a decision of a body consisting of three persons of which a District Judge or a
retired District Judge is the Chairman. So there is possibility for a judicial review in an appeal.

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CHAPTER-VII
AWARD OF LOK
ADALAT

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7.1. Finality of Lok Adalat Award


One crucial issue which raises its head often is the finality of the award of the Lok
Adalat. During the Lok Adalat, the parties agree to abide by the decision of the Judge at the
Lok Adalat. However, it is often seen that later, the same order is challenged on several
grounds.
Therefore, the Supreme Court of India in:
Supreme Court of India, P.T. Thomas v. Thomas Job100 has laid to rest all such doubts.
In unequivocal terms, the Court has held that award of the Lok Adalat is as good as the
decree of a Court. The award of the Lok Adalat is fictionally deemed to be decree of Court
and therefore the Courts have all the powers in relation thereto as it has in relation to a decree
passed by itself. This, includes the powers to extend time in appropriate cases. The award
passed by the Lok Adalat is the decision of the Court itself though arrived at by the simpler
method of conciliation instead of the process of arguments in Court.
Moreover, the Lok Adalat will pass the award with the consent of the parties,
therefore there is no need either to reconsider or review the matter again and again, as the
award passed by the Lok Adalat shall be final.
Even as under Section 96(3) of C.P.C. that "no appeal shall lie from a decree passed
by the Court with the consent of the parties". The award of the Lok Adalat is an order by the
Lok Adalat under the consent of the parties, and it shall be deemed to be a decree of the Civil
Court, therefore an appeal shall not lie from the award of the Lok Adalat as under Section
96(3) C.P.C.101 Further, by virtue of Section 21, the award of the Lok Adalat shall be deemed
to be a decree of a civil Court and shall be final and binding to all the parties to the dispute.
It is also final against the court that even the court which has referred the case to Lok-
Adalat cannot became functus officio, to decide the case after the award passed by Lok
Adalat.102 Therefore, an award passed by statutory court conducted by any of the authorities,
as per the provisions of the Act, cannot be challenged through the regular remedies available
under the law, including under Article 226 of the Constitution of India.103

100
Decided on August 4, 2005, Appeal (Civil) 4677 of 2005, (Arising Out of S.L.P. (C) No. 20179/2003); AIR 2005
SC 3575).
101
P. T. Thomas v. Thomas Job, AIR 2005 SC 3575 [para 22]; 2005 AIR SCW 4593.
102
Valarmathi Oil Industries v. Saradhi Ginning Factory, AIR 2009 MADRAS 180 [Para 14].
103
P. K. Rajeswari v. P. K. Sooraj Kumar AIR 2006 KERALA 137 [Para 5]. P. T. Thomas v. Thomas Job, (2005) 8
SCC 478 , Moni Mathai v. Federal Bank of India, AIR 2003 Ker 164 followed.

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While adding the rational of the finality in the nature for the award of the Lok-Adalat
Madhya Pradesh High Court in: Punjab National Bank v. Lakshmichand Rah104 held -
"Lok Adalat is conducted under an independent enactment and once the award
is made by Lok Adalat the right of appeal shall be governed by the provisions of the
Legal Services Authorities Act when it has been specifically barred under Provisions
of Section 21(2), no appeal can be filed against the award under Sec. 96 C.P.C." The
Court further stated that "It may incidentally be further seen that even the Code of
Civil Procedure does not provide for an appeal under Section 96(3) against a consent
decree. The Code of Civil Procedure also intends that once a consent decree is passed
by Civil Court finality is attached to it. Such finality cannot be permitted to be
destroyed, particularly under the Legal Services Authorities Act, as it would amount
to defeat the very aim and object of the Act with which it has been enacted, hence, we
hold that the appeal filed is not maintainable.105
7.2. AWARD OF LOK ADALAT AND JUDICIAL REVIEW
As provided by the Legal Services Authorities Act, 1987 Lok Adalat decides the
matter on a consent or compromise basis and there is no need either to reconsider or review
the matter again and again. The award passed by the Lok Adalat is final and binding on the
concerned parties. However, the consent of the parties must be clear, agreed upon and
without any fraud and misrepresentation.
This shows that matter of consented decree need not go in appeal, specifically when it
is expressly provided by the Act itself. However, the power of judicial review in such a case
is not barred and is implicit in the Constitution of India unless expressly excluded by the
provisions of statute itself.106 Hence, there is always a scope to go for a writ petition to
challenge the award in case of any grave illegality because there is always a possibility of
fraud, misrepresentation, coercion etc, while arriving at the consent or compromise.
Accordingly, in Mansukhlal Vithaldas Chauhav v. State of Gujarat,107 it was held
that, in case, Lok Adalat exceeds its powers, committed an error of law, breach of rules of
Natural Justice or abused its powers, the award passed by it cannot be tolerated and it will
justify the interference by courts under Article 226 and Article 32 of the Constitution of
India.

104
AIR 2000 MP 301.
105
Ibid.
106
Supra note 12 at 9.
107
(1997) 7 SCC 622.

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As far as the question of appeal and judicial review is considered in case of
Permanent Lok Adalat, the position is different as there is no provision of appeal but is also
not expressly excluded by the provisions of the said Act. 108 Here, the Permanent Lok Adalat
does not simply adopt the role of an Arbitrator whose award could be the subject matter of
challenge but the role of an adjudicator as Parliament has given the authority to it to decide
the matter.
However, the Judiciary categorically expressed that there is not much scope for the
review of the award passed by the Lok-Adalat. Specially, u/s 96 (3) of C.P.C., 1908, no
remedy is available and as the Legal Services Authorities Act, 1987 is special legislation, the
remedy shall be sought under that act, and not under procedural law. Such award can only be
challenged and open for judicial review on limited grounds.109
Award of the Lok-Adalat is open to challenge and subject to judicial review on the
grounds such as,
a) Fraud and misrepresentation
b) Absence of free Consent, absence of parities or any parties or consent not proper
c) By coercion, or pressuring the parties to refer the matter to Lok-Adalat by Court
d) No dispute existed between the parties for resolving or settling
e) Impair the interest of the minor
f) Totally arbitrary and unreasonable

108
This may be because the Permanent Lok Adalats differ from Lok-Adalat in several respects. The former has
power to act both as conciliator and adjudicator, whereas, the latter only has to restrict its role as conciliator.
See for more detail for the role of Permanent Lok-Adalat, United India Insurance Co. Ltd vs Ajay Sinha And
Another on 13 May, 2008, [Bench: Justice V Sirpurkar, Justice S. B Sinha, judgement delivered by Justice S.B.
Sinha], the court describe,
'....the Permanent Lok Adalat does not simply adopt the role of an Arbitrator whose award could be the
subject matter of challenge but the role of an adjudicator. The Parliament has given the authority to the
Permanent Lok Adalat to decide the matter. It has an adjudicating role to play.' [Para 26].' Available at
http://www.indiankanoon.org/doc/1100992/ visited on 05.02.2011
109
A.P. High Court in Board of Trustees of the Port of Visakhapatnam v. Presiding Officer, Permanent, Lok
Adalat-cum-Secretary, District Legal Services Authority, Visakha-patnam and
another reported in 2000(5) ALT 577 [2000 Lab IC 3735] held,
"The award is enforceable as a decree and it is final. In all fours, the endeavour is only to see that the disputes
are narrowed down and make the final settlement so that the parties are not again driven to further litigation
or any dispute. Though the award of a Lok Adalat is not a result of a contest on merits just as a regular
suit by a Court on a regular trial, however, it is as equal and on par with a decree on compromise and will have
the same binding effect and conclusive just as the decree passed on the compromises cannot be challenged in
a regular appeal, the award of the Lok Adalat being akin to the same, cannot be challenged by any regular
remedies available under law including invoking Article 226 of the Constitution of India challenging the
correctness of the award on any ground. Judicial review cannot be invoked in such awards especially on the
grounds as raised in this writ petition.
See also, P. T. Thomas v. Thomas Job AIR 2005 SC 3575 [para 24]; 2005 AIR SCW 4593. For ratio and limit of
jurisdiction of Lok Adalat on 'Compromise and settlement, See, "Shashi Prateek v. Charan Singh Verma" AIR
2009 ALLAHABAD 109.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
g) If the award is observed to be without the parties having voluntarily, out of their
own accord, without a free will, have entered into settlement.
h) Ex-parte or Ex-facie judgment without compromise and settlement.
i) Production of Succession Certificate -cannot be considered as consent
j) If the parties are not heard in the matter.
k) Procedural lapses.
l) Related to non-compoundable offence.
m) Without jurisdiction and contravenes the principles of justice, equity and fair-
play.
n) If court overstep its power while referring the matter to Lok-Adalat.

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CHAPTER-VIII
LANDMARK
JUDGMENTS

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

8.1. Important Precedents


a) Thomas v. Thomas Job 110
It was held that the award of the Lok Adalat is fictionally deemed to be decrees of the
Court and therefore the courts have all the powers in relation thereto as it has in relation to a
decree passed by itself. This includes powers to extend time in appropriate cases. The award
passed by the Lok Adalat is the decision of the Court itself though arrived at by a simpler
method of conciliation instead of the process of arguments in court. The effect is the same.
The effort shall be to give life and enforceability to a compromise award and to defeat it on
technical grounds. The award of Lok Adalat is final and permanent which is equivalent to a
decree executable and the same is ending to the litigation among parties.
b) Thomas v. Florence111
The question in dispute was to determine as to which court is to execute the award of
the Lok Adalat? It was held in this case that it would be the court of competent jurisdiction
that would have entertained the matter for trial, had the matter not been settled in the Lok
Adalat.
c) Krishnakumari v. Venugopal 112
It was laid down that the settlement arrived at by the Lok Adalat shall be guided by
the principles of natural justice, equity, fair play and other legal principles. Lok Adalats are
not meant to bring down the pendency of cases somehow. When matters over which Family
Courts are having jurisdiction are dealt with by Lok Adalats, the decisions arrived at must be
in consonance with the provisions contained in Section 9 of the Family Courts Act. Further,
an award can be interfered with by the High Court, under Articles 226 and 227 of
Constitution, if a patent illegality is involved.
d) Chandran v. Prakasan 113
It was held that the finality of the award of the Lok Adalat will not bridle the power of
the Court to re-determine or cancel the maintenance as provided for u/Sec 127 of Cr.P.C.
e) Moni Mathai Others v. Federal Bank Ltd.114
It was held that the Lok Adalat shall not take advantage of ignorance of a party and
close their eyes to the legal effect of the terms of settlement.

110
2005 (3) KLT 1042 SC.
111
2006 (3) KLT 717.
112
2005 (2) KLT 185.
113
2005 (4) KLT 1038.
114
2003 (1) KLJ 406.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
h) Sailendra Narayan Bhanja Deo v. The State of Orissa115
To denote the binding nature of award of Lok Adalat, Supreme Court stated that the
judgment by consent or default is as effective an estoppel between the parties as judgment
whereby the court exercise its mind on a contested case.
From these several judgments and from the glimpse of legal provisions incorporating
the concept of Lok Adalat, it may be inferred that after the establishment of lok adalats, it has
done a commendable job in speedy disposal of cases even though much more is needed to be
done in this arena, nevertheless its worth mentioning. The legislature has also done a
commendable job by removing every kind of possible difficulties for the smooth functioning
of this eminent feature of the judiciary.
The most important aspect brought in by the legislature in this regard in that the
award of the Lok Adalat is not made subject to any appeal.
However in certain circumstances, court may entertain an appeal for questioning an
award passed by the Lok Adalat. This aspect was very well explained by the Karnataka High
Court, on 03 August 2001 in The Commissioner, Karnataka State Public Instruction
(Education), Bangalore v. Nirupadi Virbhadrappia Shiva Simp.116
The question was whether high court in exercise of its jurisdiction under Arts. 226
and 227 may interfere in matter to put at rest impugned order in face of s. 21(2) which bars
any appeal to any court against award – power of judicial review in given case is implicit
under Constitution unless expressly excluded by provisions of Constitution.
In this case,
 The petitioners had challenged the award passed by the Lok Adalat.
 The petitioner among other issues had sought for clarification as to what is the remedy
available to the state when it is facing the wrong end of the stick as a result of an
order passed by the Lok Adalat. Should the order be final or is it open to challenge
under Arts. 226 and 227 of the Constitution of India?
The Hon’ble High Court observed that ‘the power of judicial review in a given case is
implicit under the Constitution unless expressly excluded by a provision of the Constitution.
This power is available to correct any order passed by a statutory authority which is violating
of any of the provisions of the statute. The Lok Adalat is a creation of statute and gets
jurisdiction from it and hence this court is competent to go into an order passed by it, to
decide whether the order in question is valid in law. The writ jurisdiction of the high court

115
AIR 1956 SC 346.
116
2001 AIR (KAR) 504.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
may not be circumscribed by provisions of any enactment as is to be found in s. 21 and it may
always exercise its jurisdiction if an order, left alone, would amount to abrogating the rule of
law’.
Therefore it may be inferred that an award passed by the Lok Adalat is final and no
appeal lies against such award but however if the court referring a matter to the Lok Adalat
fails to adhere with the provisions laid down in the Legal Services Authorities Act, 1987 then
such award will be null and void and will not be a binding on the parties and the matter will
revert back to the referring court.

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CHAPTER-IX
FINDINGS OF THE
STUDY

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

9.1. suggestions
The large population of India and the illiterate masses have found the regular
dispensation of justice through regular Courts very cumbersome and ineffective. Also, in
special conditions prevailing in the Indian society and due to the economic structure, highly
sensitised legal service is required which is efficacious for the poor and ignorant masses. It is
now a success and needs to be replicated in matters which have not yet been under the
domain of Lok Adalat.
At present there is an urgent need to have an alternative dispute resolution for
business disputes which is as good as the model of Lok Adalats. Moreover, there is a need to
use the techniques used in Lok Adalat in conflicts related to public issues where the number
of players is quite large and in most of the matters the government is also involved in one
way or the other.
Further, in India, courts are flooded with litigations. Thousands of cases are pending
for disposal in the Supreme Court of India, lakhs of cases are pending in the High Courts and
millions of cases are pending in the subordinate courts for disposal. In India, litigation span
of life is ordinarily running into a decade. In such scenario, Lok Adalat is definitely a positive
step towards access to justice particularly by poor and down trodden of our country. The
people of India have received benefits out of it without realizing the nature and status of the
institution and not bothering to know how their role is strengthening it.
Apart from this, with the change of time, India has to be a venue for international
arbitrations. New trends in litigation, such as those related to intellectual property rights,
cyber-crimes, environment, money laundering, competition, telecom, taxation, international
arbitration and so on need expertise. This could be possible only by providing proper training
to the judges of lok adalat. Establishing separate permanent and continuous Lok Adalats for
government departments, statutory authorities and public sector undertakings for disposal of
pending cases as well as disputes at pre-litigation stage, which is not yet done. Though this
measure is thought to been taken up by the NALSA in the year 1998 but yet not
implemented. So the same must be brought into picture as soon as possible.
Although, Lok Adalats are a big boon to the present judicial system. However lots of
work needs to be done in this sphere. E.g. There has to be more creation of awareness to
Legal Aid Schemes and programmes under it. More discipline must be brought into the
present system. For instance, since December 2005, over 2000 applications have been filed

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with the lok adalat of the Andaman and Nicobar Islands. Less than 100 cases have been
disposed off till date.
During the last few years Lok Adalat has been found to be successful tool of alternate
dispute of India. It is most popular and effective because of its innovative nature and
inexpensive style. The system received wide acceptance not only from litigants, but from
public and legal functionaries in general. Also the ambit of the lok adalat must be widened
for speedier disposal of more cases.
The provision of consent must be done away with if the matter is a perfect case to be
referred to the lok adalat. Such a step will bring in more disputes to the lok adalat for the
speedy disposal of the matter. Finally, the awards of the Lok Adalats must be given precedent
value for similar disputes brought forward in the Lok Adalats. It is because the awards given
by the lok Adalats are final and in nature as no appeal may be preferred against such an
award. Therefore, it is humbly submitted that if such steps are taken by the eminent
lawmakers of our country then we sincerely feel that it would drastically bring down the
number of pending cases in our country and would provide speedy justice to everyone as
‘justice delayed is justice denied’.
The study points out that in Lok Adalats, justice has fallen victim to the desire for the
speedy resolution. Instead of trying genuine compromise, in some cases Lok Adalats try to
force an adjudicatory decision upon unwilling litigants. The right to fair hearing, which is one
of the basic principles of natural justice, is denied to the people. Many sitting and retired
judges while participating in Lok Adalats as members, tend to conduct the Lok Adalats like
courts, by hearing parties and by imposing their views as to what is just and equitable on the
parties. Sometimes they get carried away and proceed to pass order on merits even though
there is no consensus or settlement. The presiding officers should resist from the practice of
making adjudicatory decisions in the lok adalats. Such acts instead of fostering alternative
dispute resolution through Lok Adalats will drive the litigants away from the Lok Adalats.
The study stresses that the people in India should take resort to the lok adalats to get their
disputes settled in an indigenous way.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

9.2. CONCLUSION
The quest for equal, fair and even handed justice has been the passionate demand of
human being from the emergence of the society in all civilisations. Therefore, the right of
effective access to justice has developed as the most basic human rights of a legal system
which purports to guarantee the legal, social, political, cultural and economic rights in a
country.
The term access to justice connotes the ability of a person to participate in the judicial
process for the protection and enforcement of his rights. It covers more than bare court entry
and includes the ability to reach the lawyers, police, enforcement machinery and capacity to
bear the costs and time of litigation. In this backdrop, the right to access to justice through
efficacious justice delivery mechanism, is imperative to secure justice under the Constitution.
The Preamble makes it abundantly clear that justice social, economic and political are
the cherished objects. With the purpose to implement this object of trilogy of justice, the
various mandates enshrined in Part III and Part IV of the Constitution lay down emphasise on
the establishment of a qualitative justice dispensation system and at the doorsteps of people.
Similarly, the Apex Court has played a significant role through its number of judgments for
the betterment of administration of justice by declaring the right of free legal aid and speedy
trial as a part of fundamental rights under Article 14 and 21 of the Constitution.
However, in reality, our present judicial system based on Anglo-Saxon jurisprudence
is being buried under the monumental weight of arrears. Because, litigation has increased
manifolds, not only on account of population growth but also in view of new laws, legal
awareness, shortage of judges, industrial and commercial increasing involvement of
government in everyday life of people, growth, besides urbanization. The formal judicial
machinery has failed to administer qualitative and effective to the people due to delay,
corruption, highly cost of litigation, non access to justice, lengthy legal process due to
technical procedural laws and less number of courts etc.
Lok Adalat means people's court which solves the disputes of parties by discussion,
counselling, persuation and conciliation so that it gives speedy and cheaper justice with the
free and mutual consent of the parties. The institution of Lok Adalat is not the substitute of
existing judicial system but only works as supplementary to it so that mounting arrears are
reduced and quick justice is provided. It is a participatory justice mechanism in which judges,
lawyers, social workers law teachers and disputants altogether settle the dispute in friendly
atmosphere and in this way, they further the unity and integrity of society.

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UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE
Lok Adalat system is a medicine in litigating with hardly any adverse effects. In fact,
apart from easy accessibility, quicker and cheaper justice, the chief beauty of Lok-Adalat is
the decimation of bitterness, because compromise is the very soul of the Lok-Adalat justice.
It is based on the spirit of equality, justice and rule of law enshrined our National Charter
with a view to improving the prevailing judicial system with functional process and
promotion of justice through law.
Hence, the study reveals that the Lok Adalat system is people oriented and people
supported mechanism which has received wide support from different sections of the society.
Due to, its features, it has not only resulted in lessening the workload of our regular courts
but has also provided efficacious justice to those who cannot afford to fight the costly legal
battle for the assertion and protection of their rights under the prevailing justice delivery
mechanism. Therefore, the forum of Lok Adalat deserves to be strengthened, developed for
preventing litigation, ending the pending litigation and ultimately forming the Lok Adalat a
peace-making and peacekeeping institution so that it may play a significant role in
development of country.

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BIBLIOGRAPHY
Books Referred:
 N.R. Madhava Menon, Clinical Legal Education( Eastern Book Company, Lucknow,
2010).
 Sarfaraz Ahmed Khan, Lok adalat: An Effective Alternative Dispute Resolution
Mechanism, 65 (APH Publishing Corporation, New Delhi, 2006).
 The Constitution of India, Universal Law Publications, 2013.
Articles Referred:
 Anurag K Agarwal, “Role of Alternative Dispute Resolution Methods in
Development of Society: Lok Adalat in India” IIMA (2005).
 D. K Sharma, “Lawyers and Lok Adalat,” 251 AIR (2004).
 Dr. Deepa P. Patil, “A Critical analysis on Lok Adalat in India,” ISSN 3 (2015).
 K.M.H Rayyappa, “Lok Adalats: Objectives, pre-requisites, strategies and
organization,” Ind Bar Rev 14:4 (1987).
 M.R. Saxena “Legal Aid Advice Scheme and Lok Adalat”, 105 AIR (1986).
 N.C. Jain, “Legal Aid, Its Scope and Effectiveness of the Legal Aid Rules in This
Regard,” 185 AIR (1996).
 N.R. Madhava Menon, “Lok Adalat: People’s Programme for Speedy Justice,” Ind
Bar Rev 13:2 (1986).
 Neela Kantho Das, “Restructuring of Judicial Administration in Orissa”, 132 AIR
(1991).
 S. Rao, “Legal Aid and Undertrials,” 37 CrLJ (1993).
 Paras Diwan, “Justice at the Door-Step of the People, The Lok Adalat System,” 85
AIR (1991).
 Shiraj Sidhva, “Quick, Informal, Nyaya,” 39 LEXET JURIS (1988).

Web Sites Referred:


 Ashish A. Ahuja, “Lok Adalats, a Practical examination,” available at:
http://manupatra.org (Last visited on October 26, 2016).
 Karthyaeni. V and Vidhi Bhatt, “Lok Adalats and Permanent Lok Adalats,” available
at:
http://www.legalservices.com (last visited on October 12, 2016).
 Manzoor Elahi, “Lok Adalat System in India,” available at:

BIBLIOGRAPHY Page 60 of 62
UNDERSTANDING LOK ADALATS: INDIAN PERSPECTIVE

http://www.academia.edu/3296008/ (Last visited on October9, 2016).


 Prafull, “Lok adalat,” available at:
http://www.ias.org.in (Last visited on October9, 2016).
 Sayani Chakeraborty and Soumya Misra, “Lok Adalat,” available at:
http://stpl.india.com (last visited on September 5, 2016).
 “Concept and Nature of Lok Adalat” , avalaible at:
http://shodhganga.inflibnet.ac.in (last visited on September 5, 2016).

BIBLIOGRAPHY Page 61 of 62

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