Hey constitutes

1. SUBMITTED BY:
ALO DUTT
B.A.,LLB. 9TH SEMESTER
LOK ADALAT AND
PERMANENT LOK ADALAT

2. INTRODUCTION
 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”.
 India has a long tradition and history of such methods
being practiced in the society at grass roots level. These
are called Panchayat and in the legal terminology, these
are called arbitration.

3. BRIEF HISTORY
 The Committee for implementing Legal Aid Schemes
(CILAS) constituted by the Ministry of Law and Justice,
Government of India in 1980 recommended the
establishment of Lok Adalat
 The first Lok Adalat camp was held on March 14, 1982 at
Junagarh in Gujarat the land of Mahatma Gandhi.
 The advent of Legal Services Authorities Act, 1987 gave a
statutory status to Lok Adalats, pursuant to the
constitutional mandate in Article 39-A of the Constitution
of India.
 The first Lok Adalat was held in Chennai in 1986.

4. WHAT IS LOK ADALAT?
 A court which has been organized by the Supreme court
legal service or High Court Legal Services or District
Legal Services Authority or Taluk Legal Services
Committee for the purpose of amicably settling a dispute
between two parties by way of compromise is called LOK
ADALAT

5. OBJECT
 The aim of the Lok Adalat was to provide an alternative
to the mainstream legal system.
 The Lok Adalat is a legislative attempt to decongest the
Courts from heavy burden of cases. There is a need for
decentralization of justice.

6. WHAT KINDS OF DISPUTE ARE
SETTLED IN THE LOK ADALAT?
 Compoundable civil, revenue and criminal cases.
 Motor accident compensation claims cases
 Partition Claims
 Damages Cases
 Matrimonial and family disputes
 Mutation of lands case
 Land Pattas cases
 Bonded Labour cases
 Land acquisition disputes
 Bank’s unpaid loan cases
 Arrears of retirement benefits cases
 Family Court cases
 Cases which are not sub-judice
N.B.:- Generally it can be said that any cases pending in The High Court or any other
court that can be compromised as per law can be settled by the Lok Adalat. Apart
from this, even disputes that have not been brought on the records of Courts can be
settled amicably by the Lok Adalat

7. SECTION 19: ORGANISATION OF LOK
ADALAT
1. Central, State, District and Taluka legal Services
Authority has been created who are responsible for
organizing Lok Adalats at such intervals and place.
2. Conciliators for Lok Adalat comprise the following: -
a). A sitting or retired judicial officer.
b). other persons of repute as may be prescribed by the
State Government in consultation with the Chief Justice
of High Court.

8. JURISDICTION OF LOK ADALAT(SUB
SECTION 5 OF SECTION 19)
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 court for which the Lok Adalat
is organized.
 The Lok Adalat can compromise and settle even criminal
cases, which are compoundable under the relevant laws.

9. SECTION 20: COGNIZANCE OF
PENDING CASES & DETERMINATION
Cases can be referred for consideration of Lok Adalat as under:
1) By consent of both the parties to the disputes.
2) One of the parties makes an application for reference.
3) Where the Court is satisfied that the matter is an appropriate
one to be taken cognizance of by the Lok Adalat.
4) Compromise settlement shall be guided by the principles of
justice, equity, fair play and other legal principles.
5) Where no compromise has been arrived at through conciliation,
the matter shall be returned to the concerned court for disposal
in accordance with Law.

10. SECTION 21: PASSING OF THE AWARD
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 envisages 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

11. SECTION 22: POWERS OF THE LOK
ADALAT
Lok Adalat have the same powers as are vested in a civil
court under the CPC, 1908.
Every proceedings of the Lok Adalat shall be deemed to
be judicial proceedings for the purpose of
1. Summoning of Witnesses.
2. Discovery of documents.
3. Reception of evidences.
4. Requisitioning of Public record.

12. MERITS OF LOK ADALAT
 The litigants would get speedy justice.
 If any case pending in any court is settled in Lok Adalat , parties would get
refund of the court fee paid.
 Justice would be totally inexpensive as the litigants need not spend here
anything towards court fees, process fees, postage charges etc.
 Since one of the conciliators would be a judicial officer the litigants would get
impartial and fair guidance.
 Litigants can directly participate in Lok Adalat.
 It is very effective in settling money claims and there is a higher scope of
compromise.
 Lok Adalats see that operation of the legal system promotes justice on the basis
of equal opportunity.

13. DRAWBACKS OF LOK ADALAT
 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.
 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.
 The anxiety of the litigants to settle their disputes without the vexation of court
litigations exploited by the opposite parties and even by some lawyers. It might
be easy to make him agree to the payment of ‘contingency fee’ to his lawyer
and to accept an amount which is much lower then his due. After the
settlement, the lawyers may take a major chunk of the amount as ‘contingency
fee’. Although taking contingency fee is prohibited in our country, it is being
practiced by some lawyers.
 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.

14. Contd…
 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.
 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 Company, demonstrates the sad state of compromises and
settlements in Lok Adalats denying the fair minimum claims of the
petitioners. The Motor Vehicle Act, 1988 lays emphasis on speedy
resolution of the claim but due to inordinate delay the claimants settle at
the lowest compensation with the insurance companies.
 A 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.

15. POWER OF JUDICIAL REVIEW
 Based on the maxim “Justice Delayed Is Justice
Denied, But Justice Hurried Is Justice Buried.”
 In Manshukhlal Vithaldas Chauhav v. State
of Gujrat, it was held that in case where Lok Adalat
exceeds its power and committed an error of law or
breach of rule of natural justice or abused his
powers, the award passed by it cannot be tolerated
and it will justify the interference by court under
Article 32, 226 of the Constitution of India.

16. GROUNDS
 Fraud and misrepresentation.
 By coercion or pressurizing the party to refer the matter
to the Lok Adalat.
 Absence of free consent or the consent of the parties are
not proper.
 Impairing the interest of the minor.
 Totally arbitrary and unreasonable.
 Ex-parte judgment without compromise or settlement.
 If the parties are not heard in the matter.
 Related to non-compoundable offences.
 If the court has over stepped its powers while referring
the matter to Lok Adalat.

17. WHAT IS PERMANENT LOK ADALAT?
 The courts established by the National Legal Services Authority or
State Legal Services Authority, for the speedy disposal or disputes
pertaining to Public Utility Services and not yet recorded in any
court of law, by way of compromise, are called Permanent Lok
Adalats.
 Public Utility Services include:
(1) Transport service,
(2) Postal, telegraph or telephone services,
(3) Supply of power, light and water to public,
(4) System of public conservancy or sanitation,
(5) Insurance services and such other services as notified by the
Central or State Governments.

18.  The permanent Lok Adalats are conciliation cum-
arbitration tribunals to settle disputes between selected
public utility service and individuals.
 PLAs have the same powers that are vested on the Lok
Adalats, mentioned under Section 22(1) of the Act.

19. NATURE OF JUDGMENT OF THE
PERMANENT LOK ADALAT
1. The judgment of the Permanent Lok Adalat is final and
binding on both the parties.
2. The judgment of the Permanent Lok Adalat is not
appealable nor can it be called in question in any suit or
Execution Proceedings.
3. By filing Execution Petition in the Civil Court one can
get the judgment of the Permanent Lok Adalat executed.

20. SECTION 22B (2):ORGANISATIONAL
STRUCTURE OF PERMANENT LOK ADALAT
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.
Members---
 Two other persons having adequate experience in Public
Utility Service to be nominated by Central Government
on the recommendation of Central Authority and by the
State Government on the recommendation of the State
Authority.

21. SECTION 22C: COGNIZANCE OF PENDING
CASES BY PERMANENT LOK ADALAT
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 disputes involving
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 can
be 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.

22. SECTION 22C & 22D: 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
or opposition. PLA may require the parties to file additional statements at any stage.
2. The party may also file any document or such other evidence, 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.

23. 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. If the 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 play, 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.
10. Every award made by the PLA shall be by the majority of the persons constituting the
PLA.
11. The award rendered by PLA shall be deemed to be a decree of a civil court and shall be
final. The PLA may transmit the award to the court having local jurisdiction for
execution.

24. MAJOR CHALLENGES
 The need of hour is frantically beckoning for setting up Lok-Adalats on
permanent and continuous basis. What we do today will shape our
tomorrow.
 There has been an alarming situation of docket-explosion and the
ultimately remedy is the disposal of cases through the mechanism of Lok-
Adalat.
 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.
 The ambit of the Lok Adalat must be widened for speedier disposal of
more cases.
 The awards of the Lok Adalats must be given precedent value for similar
disputes brought forward in the Lok Adalats.

25. THANKYOU!