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Lok Adalats have no judicial functions: court

Legal Correspondent

New Delhi: Lok Adalats set up under 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.

A Bench comprising Chief Justice K.G. Balakrishnan and 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 puts its seal of confirmation by making an award in terms of the compromise or settlement.”

But when the Lok Adalat was not able to arrive at a settlement, the case would be returned to the court from which the reference was received for disposal in accordance with the law.

Writing the judgment for the Bench, the Chief Justice 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 to by the parties in the presence of the Lok Adalat in the form of an executable order under the signature and seal of the Lok Adalat.”

The Bench said: “But we find that many sitting or retired judges tend to conduct Lok Adalats 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.”

In the instant case, a Lok Adalat, dealing with an 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.

Allowing the State’s appeal against this judgment, the Bench said: “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.”

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