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Lok Adalats have no judicial functions: court

Legal Correspondent

If there is no award, the case should be returned to the court
“Many members tend to conduct Lok Adalats like courts”

New Delhi: Lok Adalats set up under the provisions of the Legal Services Authority Act have no adjudicatory or judicial functions and they cannot decide cases referred to them on merits, the Supreme Court has held.

Giving this ruling, a three-Judge Bench comprising Chief Justice K.G. Balakrishnan, Justices G.P. Mathur (since retired) and R.V. Raveendran said: “A Lok Adalat determines a reference on the basis of a compromise or settlement between the parties at its instance and put its seal of confirmation by making an award in terms of the compromise or settlement.”

The Bench pointed out that when the Lok Adalat was not able to arrive at a settlement, no award was made and the case would be returned to the court from which the reference was received for disposal in accordance with law.

Writing the judgment for the Bench, the CJI said: “No Lok Adalat has the power to “hear” parties to adjudicate cases as a court does. It discusses the subject matter with the parties and persuades them to arrive at a just settlement. The ‘award’ of the Lok Adalat does not mean any independent verdict or opinion arrived at by any decision making process. The making of the award is merely an administrative act of incorporating the terms of settlement or compromise agreed by parties in the present of the LA in the form of an executable order under the signature and seal of the LA.”

The Bench said: “But we find that many sitting or retired judges, while participating in Lok Adalats as members, tend to conduct LAs like courts, by hearing parties, and imposing their views as to what is just and equitable on the parties. Sometimes they get carried away and proceed to pass orders on merits, as in this case, even though there is no consensus or settlement. Such acts, instead of fostering alternative disputes resolution through LAs, will drive the litigants away from Lok Adalats.” The Bench said that Lok Adalats should resist their temptation to play the part of judges and constantly strive to function as conciliators.

In the instant case, a Lok Adalat dealing with a road accident case involving Punjab Roadways awarded Rs.1.44 lakh as compensation to the victim’s family. The Punjab and Haryana High Court rejected Punjab government’s appeal against this order. The present appeal by the State is directed against this judgment.

Allowing the appeal, the Bench said: “We find that the Lok Adalat exercised a power/jurisdiction not vested in it. On the other hand, the High Court twice refused to exercise the jurisdiction vested in it, thereby denying justice and driving the appellants to this court. In this process, a simple appeal by the legal heirs of the deceased for enhancement of compensation has been tossed around and is pending for more than eight years, putting them to avoidable expense and harassment.”

The Bench quashed the impugned orders and directed the High Court to dispose of the matter afresh expeditiously in accordance with law.

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