A PROJECT REPORT ON

PREMANENT LOK ADALAT

BY:-Raju

Introduction
Lok Adalats are another category of Alternative Dispute Resolutions. These adalats
are established under The Legal Services Authorities 1987. Legal Aid Services are
also given in this Act. ADR (Alternate Dispute Resolution) system has been an
integral part of our historical past. 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 term "Adalat" means court. India has a long tradition and history
of such methods being practiced in the society at grass root level. In ancient times,
the disputes were used to be referred to "panchayat" which were established at
village level. Panchayat’s used to resolve the dispute through arbitration. It has
proved to be a very effective alternative to litigation.
This concept of settlement of dispute through mediation, negotiation or through
arbitral process known as decision of "Nyaya-Panchayat" is conceptualized and

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institutionalized in the philosophy of Lok Adalat. It involves people who are directly
or indirectly affected by dispute resolution.
I 'he evolution of movement called Lok Adalat was a part of the strategy to relieve
heavy burden on the Courts with pending cases and to give relief to the litigants who
were in a queue to get justice.
The advent of Legal Services Authorities Act, 1987 gave a statutory status to Lok
Adalats, pursuant to the constitutional mandate in Art(39-A) of the Constitution of
India. It contains various provisions for settlement of disputes through Lok Adalat.
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 organize Lok Adalats to secure that the operation of the legal system promotes
justice on a basis of equal opportunity
There is a central authority called the "National Legal Services Authority. Its patron
is the chief Justice of India and its Executive Chairman is the senior most Judge of
the Supreme Court of India.
So far as the State Legal Services Authorities are concerned, it is headed by a Patron-
in Chief who is none other than the Chief Justice of the High court. In all most all
the State authorities, except perhaps one or two, a sitting judge of the High Court
functions as the Executive Chairman.

Legal Services Authority Act, 1987

Section 2 (1) (aaa) of the Act defines ‘Court’ as under :—
.. "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."

Jurisdiction of Lok Adalat.

A Lok Adalat shall have jurisdiction to determine and help to arrive at a compromise
or settlement between the parties to a dispute in respect of :
(i) any case pending before the court, or
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(ii) any matter which is falling within the jurisdiction there of, and may not have
been brought before it or any court for which the Lok Adalat is organised.
(iii) The Lok Adalat can compromise and settle even criminal cases, which are
compoundable under the relevant laws.

Organisation of Lok Adalat.

The State District authority, Supreme Court Legal Services Committee, High Court
Legal Services Committee and Taluka, Legal Services Committee (mentioned in
Section 19 of the Act) can organize Lok Adalats at such intervals and places as may
be deemed fit Every Lok Adalat so organized shall consist of: (a) Serving or retired
judicial officers, (b) other persons, as may be specified.
The experience and qualification of "other persons" in a Lok Adalat conducted by
Supreme Court Legal Services Committee shal1 be prescribed by the Central
Government in consultation with the Chief Justice of India. 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 Service Schemes and Programs;
(c) An eminent social worker who is engaged in the upliftment of weaker sections
of people, including scudded castes, scheduled tribes Women, children, rural and
urban labour.
The experience and qualification of "other persons" mentioned in Clause (b) shall
be prescribed by the State Government in consultation with the Chief Justice of High
Court.

Cognizance of pending cases and determination.

Jurisdiction of Lok Adalat depends on

A. Application

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(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 satisfy that there are chances
for settlement.

B. Suo motu.
Where the court is satisfied that the matter is an appropriate one taken cognizance
of, by the Lok Adalat. Then, the court shall refer the to the Lok Adalat, after giving
a reasonable opportunity for hear] case the parties. Further, the Authority or
Committee organising Lok Adah 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 referred to it expeditiously shall be
guided by principles of law, justice, equity and fair play. It 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.

Passing of the Award.—

The specialities of award of Lok Adalats are:
(1) Every award of Lok Adalat shall be deemed to be a decree of a civil court.
(2) Every award shah be signed by all the parties to the dispute and the panel
constituting the Lok Adalat.
(3) Every award shall form part of the judicial records.
(4) Every award shall he categorical and lucid.
(5) Every award shall be in the regional language or in English.
(6) A certified copy of the award shall be given free of cost, to all the parties.
(7) Every award made by Lok Adalat shall be final and binding on all the parties
to the dispute and no appeal shall lie to any court against the award.

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(8) If a pending case is settled at Lok Adalat, any court fee already paid will be
refunded as provided by the Court Fees Act, 1870.

Powers of Lok Adalat.

Powers of Lok Adalat are given in Section 22 of the Act. The powers include:—
(l) 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 coin thereof or
from any court.
(e) Such other matters as may be prescribed.
(f) 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 e a civil court, for the purpose of Section
195 and Chapter XXVI of Cr. P.C.

Benefits Of Lok Adalats

There are endless benefits that litigants can derive from this system.

First, the absence of any court fees makes it highly economical and approachable by
the weaker societies. Moreover, if a case has previously been filed in any court, the
fees charged by this court will be returned as soon as the matter is filed with Lok
Adalat.

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Secondly, there is a lot more flexibility with regards to procedural rules and the
weight of Evidence Act during the assessment of any claim. The aggrieved party and
the defendants can directly interact and communicate with the judges of Lok Adalat
despite being represented by their advocates.
Thirdly, Any matter can be presented directly to the Lok Adalat instead of going
through any court. Since time is of the essence in most of these cases, having a fast
track and cost effective system such as this can be beneficial to many.
Fourthly, Lok Adalat’s decision is binding on the parties, and the same can be
executed with a legal process. The decision of Lok Adalat cannot be appealed to
higher courts unlike the other courts of law which usually results in a delay of the
proceedings. This is because the decision made in a Lok Adalat is mutually settled
as opposed to a verdict given in other courts. Hence, the need for an appeal should
not arise if the settlement consents.
The most important feature of this system is the fast track, affordable remedy that is
available to people at large. The system has received laurels from the parties
involved in particular and the public and the legal functionaries, in general.
Voluntary participation is an essential element of this kind of a solution. It is an
assumed fact that the participating parties have decided to come to a mutual
settlement amicably.
Studies have shown that in countries that are undergoing development, around 90%
of the disputes are settled in alternative courts, and only 10% are settled in the
traditional courts. In India, Lok Adalat is the need of the day, given that the amount
of the legal fraternity is not proportionate to the disputes. Therefore as a support to
this, Lok Adalats help the courts to lift the burden laid upon them.

Permanent Lok Adalat.

Chapter VI A of the Act deals with PLA (Permanent Lok Adalats). Chapter V' A
was newly added by Amendment Act, 2002, introducing the concept of Permanent
Lok Adalat.
(1) The Central or State authorities may establish by Permanent Lok Adalats at
any place, for determining issues m connection to Public Utility Services.
(2) Public Utility Services include :
(i) Transport sendee,

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(ii) Postal, telegraph or telephone services
(iii) Supply of power, light and water to pubbc,
(iv) System of public conservancy or sanitation,
(v) Insurance services and such other services as notified by the
Central or State Governments.
(3) PLAs have the same powers that are vested on the Lok Adalats, mentioned
under Section 22(1) of the Act.

Organisational Structure of Permanent Lok Adalat.

PLA consists of the following.—
(1) Chairman—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.
(2) Members—Two other persons having adequate experience in Duolic utility
service to be nominated by Central Government on the recommendation of Central
Authority and the State Government on the recommendation of the State Authority.

Cognizance of pending cases by Permanent Lok Adalat.—

Cognizance is regulated by Section 22(c) of the Act as given below :
1. Any party to a dispute can apply to PLA for settlement of a dispute in respect of
a public utility service, which is not pending before any court.
2. PLA does not have jurisdiction to entertain dispute offences which are not
compoundable.
3. PLA does not have jurisdiction to entertain a matter where the value of the
property involved exceeds ten lakhs, which limit cabbe enhanced as provided for.
4. Once, an application is preferred to PLA for determination of a dispute, no party
to such application can invoke the jurisdiction of any court in the same dispute,

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Procedure by Permanent Lok Adalat for determination
Where the PLA receives an application for determination of a dispute.
1. The PLA should direct each party to file before it a written statement stating
therein all the facts and the nature of the dispute, points or issues and the
grounds in support opposition. PLA may require the parties to file additional
statements at any stage.
2. The party may also file any document or such other evident in proof of such
facts and grounds urged.
3. The copy of the written statement and the documents or such other evidence
filed has to be sent to the other parties to the application.
4. When the statement and additional statement and reply if any are filed, PLA
shall conduct conciliation process between parties to the application, as it thinks fit,
considering the circumstances of the dispute.
5. PLA should assist the parties in their attempt to reach an amicable settlement,
in an independent and impartial manner. Every party is duty bound to co-operate in
good faith, in the conciliation process.
6. If after the conciliation process, the PLA is of an opinion that there exists
elements of settlement in such proceedings, which may be acceptable to the parties,
PLA may formulate the terms of a possible settlement of the dispute and give it for
the consideration of the parties. If the parties are agreeable to the same they shall
sign the same and PLA shall pass an award in terms of the settlement agreement.
7. II 'he parties are not agreeable to the settlement formulated, if the dispute is
not an offence, then the PLA should decide the dispute on merits.
8. PLA shall, while conducting conciliation proceedings or deciding a dispute
on merit, shall be guided by the principle of natural justice, objectivity, fair equity
and other principles of justice.
9. The PLA , when deciding a dispute on merit, shall not be bound by the Code
of Civil Procedure, 1908 and the Indian Evidence Act, 1872.

Disposal of permanent Lok Adalat

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(w.e.f. April, 2015 to March, 2016)
No. of PLAs established :- 292
No. of PLAs functioning (as on 31.01.2016) :-239
No. of sittings :-17117
No. of cases disposed of :-103559
Total settlement amount Rs. :-238700391
1

Case
In Mansukhlal Vithaldas Chauhan v. State of Gujarat, it was held
that; The duty of the Court is to confine itself to the question of legality. Its concern
should be,
(i) whether the decision-making authority exceeded its powers?; (ii)committed an
error of law; (iii) committed a breach of the rules of natural justice; (iv) reached a
decision which no reasonable Tribunal would have reached; or (v) abused its powers.
In the case on hand the Lok Adalat exceeded its powers, committed an error of law,
committed breach of the rules of natural justice and abused its powers. Even if this
Court were to strictly confine itself to the question of legality, the impugned order
cannot still be tolerated as it suffers from all the foibles that justify interference under
Article 226 of the Constitution.
The Karnataka State Bar Council was opposed to the section in the Act which said
if one party approached the permanent Lok Adalat, the other party had no option but
to participate in the litigation. This was opposed to the canons of justice, the lawyers
said. "The right of judicial review or appeal is fundamental in all legal matters and
making the decision of the permanent Lok Adalats final, without the right of appeal,
will vest unrestricted power in the hands of a tribunal in which two non-officials can
dominate... it will impair the administration of justice,'' they said.

1
www.nalsa.gov.in/content/permanent-lok-adalat

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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.2

Conclusion
The establishment of Permanent has proved to be a very useful and effective
mechanism. It is a friendly system not only for the litigants but the judicial fraternity
as well, as it lifts off the burden imposed on the system.
The scope of getting settlements against PUS serves as a crucial platform for
ordinary men and women to seek a remedy against their malpractices without
undergoing the exhaustive and expensive procedures of a traditional court. With a
change in the economic and social scenario, where the corporate world dominates
over the domains of insurance, communications, etc. it is essential that there exists
a mechanism that gives relief without being too exhaustive. Hence, the system is
greatly appreciated in a country like India, with a developing economy and society.

2
www.legalserviceindia.com/articles/lok_a.htm

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