Alternative Dispute

Resolution (ADR)

Lok Adalat
A Way to Resolve Disputes Amicably

Mrs. Pooja Sood Gautam Gupta

ADR Lecturer B.A. LL.B (Hons.)
SSG Panjab University 7th Semester
R.C. Hoshiarpur R.No. 60 (12285)
 Lok Adalat
A Way to Resolve Disputes Amicably

Seekers of Justice are in millions. There is serious problem of

overcrowding of dockets which is putting the Court system under great
pressure. It is not that the Courts are not in a position to handle the
problem but with the present infrastructure and manpower, it is
becoming rather difficult a task. To lend a helping hand to the Court
system, the Alternative Dispute Resolution (ADR) methods in the
shape of Lok Adalats, Mediation and Conciliation have been devised.
Needless to say that the system of Lok Adalats has come as a whiff of
fresh air. It has provided a platform for inexpensive and quick
dispensation of justice. It is an informal system of dispute resolution
and in fact it is the simplest method which is devoid of procedural
wrangles of regular trials.

As per the Legal Services Authorities (Amendment) Act 1994, Lok

Adalat settlement is no longer a voluntary concept. This Act has given a
Statutory flavour to Lok Adalats.

In Chandigarh, a Permanent Lok Adalat was established on 07.08.1998.

This was first of its kind in India. This Lok Adalat is functioning at two
levels i.e. Pre-Litigative Stage and Post-Litigative Stage. Therefore,
not only pending cases referred by the respective Courts but even those
cases which have not yet entered the portals of Court are being settled
in Permanent Lok Adalat which has proven its existence by settling
huge number of disputes.

Besides, Permanent Lok Adalat, the State Legal Services Authority has
been organizing Quarterly Lok Adalats and Special Lok Adalats.
General public has benefitted a lot from Lok Adalats. The Permanent
Lok Adalat for Public Utility Services has also been set up which takes
up the disputes at pre-litigative stage.
 Procedure at Lok Adalat

The procedure followed at a Lok Adalat is very simple and shorn 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 Adalats it is easier to settle money claims since
in most such cases the quantum alone may be in dispute.

Thus the Motor Accident Compensation claim cases are brought

before the Lok Adalat and a number of cases were disposed of in each
Lok Adalat. One important condition is that both parties in dispute
should agree for settlement through Lok Adalat and abide by its
decision. 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 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 the same. 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.

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.
 Case Laws

In Punjab National Bank v. Lakshmichand Rai the High Court held

that "The provisions of the Act shall prevail in the matter of filing an
appeal and an appeal would not lie under the provisions of Section 96
C.P.C. 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 Section 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
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.

The High Court of Andhra Pradesh held that, in Board of Trustees of

the Port of Visakhapatnam v. Presiding Officer, Permanent, Lok
Adalat-c` The award is enforceable as a decree and it is final. 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 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.

In Election Commission of India v. Union of India and Ors., the Apex

Court while dealing with the powers of the Court under the Constitution
to interfere with an order passed by the Election Commission, laid
down: "There are no unreviewable discretions under the constitutional
dispensation. The overall constitutional function to ensure that
constitutional authorities function within the sphere of their respective
constitutional authority is that of the Courts". The enunciation by the
Apex Court making even an order by a constitutional authority
reviewable should leave no doubt in any one's mind that a discretion
exercised by a statutory authority would be well-within the review able
discretion of this Court.

N.L.Rajag, President of Consumer Courts, Bar Association also

pointed out that Permanent Lok Adalats do perform and can perform
invaluable service as conciliators or mediators. But then to tell parties
that even if they do not agree to settle the matter the Lok Adalat would
go ahead and pass a decree which will then be binding on them, is
horrendously arbitrary and unreasonable.

But one tends to forget the forum of judicial review is always open for
the parties through the writ petitions. This is a basic feature of the
Constitution and cannot be ruled out. Denial of it would be unfair and
unwarranted.

The ultimate result would be that all these matters will come knocking
at the doors of the High Court, thus suffocating an already overloaded
High Court.
 Advantages of Lok Adalats

S.No Routine Legal Procedure Procedure of Lok Adalat

Waiting for verdict for years Q u i c k d e c i s i o n b a s e d o n

1 together. Giving litiation in mutual understanding.
legacy to the generation to
come.
On every hearing rushing to Single decision resolving the
2 court leaving job/occupation. dispute. No loss of precious
man hours.
Spending money beyond your No expenditure. No protracted
3 means in fighting litigation in litigation.
different Courts.
Anxiety over the outcome. N o a n x i e t y o r t e n s i o n .
4 Feeling of uncertainty and Immediate and permanent
tension. solution.
Permanent rancour, enmity C h a n c e s o f n o r m a l c y i n
against rival party. Chances of relations with the opponent.
5 multifarious and frivolous N o f r i v o l o u s l i t i g a t i o n .
litigation. Goodwill prevails.

Only one party wins (it can be Win-Win situation for both.
6
the rival party)