Lok Adalat is very popular mode of settlement of a dispute amicably. The Lok Adalats are established under the Legal Services Authorities Act, 1987 (hence forth called as “the Act”.). The object of the Lok Adalat is to provide expeditious, economical and competent justice to the parties. The Act, also provides free legal help to poor and needy citizens. The scope of Lok Adalat has increased enormously, including settlement of business matters also.

II. Meaning of Lok Adalat:-

Lok Adalat is one of the alternate dispute resolution mechanisms. It is a form where disputes or cases pending in a court of law or at pre-litigation stage are settled or compromised amicably[2]. Lok Adalat is known as ‘people’s Court”. As the name itself suggest it is not a court of law. In fact, the base of Lok Adalat is to provide free, accessible and speedy justice. In Lok Adalat parties settle their dispute through negotiations and conciliation. It is win-win situation for both the parties to the dispute.

In fact, Lok Adalat is not defined specifically under the Act. However, Ch. VI. Of the Act, from Ss. 19 to 22 deal with different aspects of Lok Adalat.

III. Benefits of Lok Adalat:-

The Lok Adalats are very popular among litigants due to following reasons-

1. Instant settlement:-

The dispute is settled instantly. Even in one sitting dispute may be settled, it saves time and money of the parties.

2. Procedural flexibility:-

Main advantages of Lok Adalat are procedural flexibility and speedy settlement of dispute. Parties by negotiation settle the dispute among themselves with the help of Lok Adalat therefore, the laws i.e. C.P.C, Evidenc Act, etc. does not apply to it.

3. No Court fees:-

Free justice is provided in Lok Adalat therefore, no court fees is charted in the matters. In the matters where the court fees is already paid, the court fees is refunded, if case is settled through Lok Adalat.

In High Court of Judicature at Madras v. M.C. Subramaniam

Laws (SC) 2021-2-79

The Supreme Court observed that, the parties who get their dispute settled privately without the intervention of any Arbitrator/Mediator/Conciliators in Lokadalat etc., stands at the equal footing with those parties who get their dispute settled amicably through Arbitration, or mediation or conciliation in the Lok Adalat, by invoking provisions of S. 89 CPC. Therefore, they are also entitled for refund of court fees.

4. Direct interaction:-

The parties, their counsels can directly interact with judges, which is not otherwise possible.

5. Binding Award:-

An award of Lok Adalat is binding upon the parties as if decree of a civil court.

6. Maintain Relations:-

Lok Adalat is a mode of amicable settlement of a dispute. Therefore, good and cordial relations are maintained between the parties of the dispute.

IV. Establishment of Lok Adalats (S. 19)-

19 of the Act, discusses the following-

1. Authorities which organizes Lok Adalats:-

Every State Authority or District Authority or the Supreme Court Legal Services Committee or every High Court Legal Services Committee or as the case may be, Taluka Legal Services Committee may organize Lok Adalats at such intervals and places and for exercising such jurisdiction and for such areas as it thinks fit.

2. Composition of Lok Adalat[3]:-

Every Lok Adalat organized for an area shall consist of such number of (a) serving or retired judicial officers; and (b) other persons, of the area, as may be specified by the State Authority or the District Authority or the Supreme Court Legal Services Committee or the High Court Legal Services Committee, or as the case may be the Taluka Legal Services Committee, organizing such Lok Adalat.

‘Other Persons’ mentioned above are appointed by the Central or State Governments in consultation with the Chief Justice of India or the Chief Justice of the High Court as the case may be.

3. Jurisdiction of Lok Adalat:-

Lok Adalat shall have jurisdiction to determine and to arrive at a compromise or settlement between the parties to a dispute in respect of-

(a) any case pending before; or

(b) any matter which is falling within the jurisdiction of, and is not brought before (Pre-litigation).

However Lok Adalat shall have no jurisdiction in respect of any case or a matter relating to an offence not compoundable under any law. The Lok Adalat has proved very useful in settling disputes relating to (i) civil mattes, (ii) revenue matters, (iii) compoundable criminal offences, (iv) matters pending before different tribunals, (v) family matters, (vi) motor-accident claims, (vii) matters relating to workmen’s compensation, (viii) Banking recovery matters, (ix) Co-operative matters, etc.

V. Cognizance of cases by Lok Adalats (S. 20):-

Already pending cases may be referred to Lok-Adalat in following circumstances-

(i) where the parties to the cases agree,

(ii) Where one of the parties to the case, makes an application to the court to refer the case to Lok Adalat and if the court prima-facie satisfies that there are chances of such settlement; or

(iii) the court is satisfied that the matter is an appropriate one to be taken cognizance of by the Lok Adalat,

However, court cannot refer the dispute directly to Lok Adalat unless it gives an opportunity of being heard to the parties.

In case of pre-litigation matters which are not brought before a court, the Authority or a committee organizing a Lok Adalat, my on receipt of an application from any party, refer such matter to Lok Adalat, provided the Authority should give reasonable opportunity of being heard to other party.

After reference of the matter, the Lok Adalat shall proceed to dispose of the case or (pre-litigation) matter and arrive at a compromise or settlement beetween the parties.

Every Lok Adalat shall, while determining any such referred matter or a case, act with utmost expeditiously to arrive at a compromise or settlement between the parties and shall be guided by the principles of justice, equity, fair play and other legal principles.

Return the matter if no settlement is arrived:-

If no settlement is arrived between the parties, the Lok Adalat shall refer the matter back to the court to dispose the matter according to the law. The Lok Adalat shall also advise the parties to seek remedy in a court.

The concerned court shall start the proceeding of the matter from the stage at which it was referred.

VI. Award of Lok Adalat (S. 21):-

Every award of the Lok Adalat shall be deemed to be a decree of a civil court or, as the case may be, an order of any other court. Where a compromise or settlement has been arrived at, the court fees shall be refunded. Such refund shall be made according to the provisions of the Court Fees Act, 1870.

Every award made by a Lok Adalat shall be final and binding upon the parties to the dispute, and no appeal shall lie to any court against the award. Thus it shows that the award is final.

VII. Powers of Lok Adalat (S. 22):-

The Lok Adalat has the same powers civil court, under C.P.C. with respect to-

(a) summoning and enforcing the attendance of any witness and examining him on oath;

(b) the discovery and production of any document;

(d) the requisitioning of any public record or document or copy of such record or document from any court or office, and

(e) Such other matters as may be prescribed.

Without prejudice to the general powers above mentioned, the Lok Adalat shall have the requisite powers to specify its own procedure for the determination of any dispute coming before it.

All proceedings before the Lok Adalat shall be deemed to be judicial proceedings.

Notes

Lok Adalat in Motor Accident claim:-

Lakhs of motor accident compensation claim cases under the Motor Vehicles Act, 1988 for personal injury or death are pending before different courts in India. In fact, in such types of cases, applicants need urgent help or monitory assistance. But it takes at least three to five years to decide the case through regular judicial method.

In Lok-Adalat the matters can be settled speedily.

There are around 60% of total injury claim cases relating to small injuries. Such cases can be settled through alternate dispute resolution, specifically Lok Adalat.

Even though large number of cases are settled through Lok Adalat, lot needs to be done to settle more number of cases taking into consideration pendency of cases.

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[1] लोकअदालत

[2] “लोक अदालत” वैकल्पिक विवाद समाधान तंत्रों में से एक है। यह एक ऐसा रूप है जहां किसी अदालत में या मुकदमे से पहले के स्तर पर लंबित विवादों या मामलों को सौहार्दपूर्ण ढंग से सुलझाया, या समझौता किया जाता है।

[3] लोक अदालत की संरचना