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PERMANENT LOK ADALATS

I. INTRODUCTION

The Indian judiciary is one of the oldest judicial systems. With the passage of time, the Indian
Judiciary system has become inefficient in dealing with pending cases. Indian courts are clogged
with long unsettled cases and hence such a situation calls for improvements in the available
alternatives. Alternative Dispute Resolution (‘ADR’) plays a significant role in overcoming this
problem of pendency of cases1 by providing a convenient way of resolving disputes. (Skip to
Page 3 now) It offers to resolve matters including that of civil, commercial, industrial and
family, etc2. Modes of settlement under ADR include:

 Arbitration
 Conciliation
 Mediation
 Negotiation
 Lok Adalat

II. UNDERSTANDING THE ADR MECHANISM IN INDIA

ADR in its simple terms can be defined as a process which differs from that of judicial
determination, and this process basically involves an impartial person assisting those in dispute
in order to resolve the matter between them. Put in a precise way, ADR can be said to be an
“assisted” or “appropriate” dispute resolution. In certain cases, ADR can even include
approaches which enable parties to manage their disputes amongst themselves without outside

1
Anubhav Pandey, All you need to know about Alternative Dispute Resolution (ADR), Ipleaders – Intelligent
legal solutions(May 9, 2017) https://blog.ipleaders.in/adr-alternative-dispute-resolution/.

2
Vinay Vaish, Partner, Vaish Associates Advocates, Alternate Dispute Resolution (ADR) In India, Vaish
Associates Advocates(11 December
2017) http://www.mondaq.com/india/x/654324/court+procedure/Alternate+Dispute+Resolution+ADR

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aid or support. It can further be said that ADR provides a cost-effective, relevant, fair and timely
means of resolving the disputes involved.

III. IMPORTANT LEGAL PROVISIONS RELATED TO ADR IN INDIA

1. SECTION 89 OF CIVIL PROCEDURE CODE, 1908 provides for a provision which lays
down that if it appears for the court that there exists some element of settlement of issues
between the parties, then it may order settlement of issues outside the court and it can be by
the way of – arbitration, mediation, conciliation or lok adalat.
2. ARTICLE 39 OF THE INDIAN CONSTITUTION relating to directive principles of state
policy, which provides that the state shall secure the operation of a legal system which
provides equal opportunities and in addition, it shall also make free-legal aid available to the
person by the way of suitable legislation or schemes, this even ensures opportunities for
securing justice and not to deny it to any person based on their economic or financial
disabilities3.
3. ARTICLE 14 AND 21 OF THE INDIAN CONSTITUTION deals with equality before
law, right to life and personal liberty respectively, taking into account the adr motive it can
be said that it tries to provide socio-economic and political justice and also maintain integrity
in the society.
4. ARBITRATION AND CONCILIATION ACT, 1996 the various acts under this deal with
alternate dispute resolution.
5. THE LEGAL SERVICES AUTHORITY ACT, 1987 the rules framed under this act prove
to be of great use while dealing with the alternate dispute resolution.

3
S.Chaitanya Shashank, Kaushalya T. Madhavan, KIIT School Of Law, ADR in India: Legislations and
Practices,  Academike – Articles on legal issues(January 7,
2015) https://www.lawctopus.com/academike/arbitration-adr-in-india/.

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IV. LOK ADALATS IN INDIA – BRIEF 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. These are widely used
in India for resolution of disputes both commercial and non-commercial. In a Lok Adalat, justice
is dispensed summarily without too much emphasis on legal technicalities and this has been
proved to be a very effective alternative to litigation.

The ancient concept of settlement of dispute through mediation, negotiation or through arbitral
process known as "Peoples' Court verdict" or decision of "Nyaya-Panch" is conceptualized and
institutionalized in the philosophy of Lok Adalat. Some people equate Lok Adalat to conciliation
or mediation, some treat it with negotiations and arbitration. Those who find it different from all
these, call it "Peoples' Court". It involves people who are directly or indirectly affected by
dispute resolution.

The salient features of this form of dispute resolution are participation, accommodation,
fairness, expectation, voluntariness, neighborliness, transparency, efficiency and lack of
animosity.

The concept of Lok Adalats was pushed back into oblivion in last few centuries before
independence and particularly during the British regime. Now, this concept has, once again, been
rejuvenated. It has, once again, become very popular and familiar amongst litigants. This is the
system which has deep roots in Indian legal history and its close allegiance to the culture and
perception of justice in Indian ethos. Experience has shown that it is one of the very efficient and
important ADRs and most suited to the Indian environment, culture and societal interests.
Camps of Lok Adalats were started initially in Gujarat in March 1982 and now it has been
extended throughout the Country.

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V. LEGISLATION PERTAINING TO LOK ADALATS

The 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 said act contains various
provisions for settlement of disputes through a Lok Adalat. It is primarily 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. Even before the
enforcement of the Act, the concept of Lok Adalat has been getting wide acceptance as People's
Courts as the very name signifies. Settlement of disputes at the hands of Panchayat Heads or
tribal heads was in vogue since ancient times. When statutory recognition had been given to Lok
Adalat, it was specifically provided that the award passed by the Lok Adalat formulating the
terms of compromise will have the force of decree of a court which can be executed as a civil
court decree.

VI. PROCEDURE AT LOK ADALATS

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

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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.

VII. FINALITY OF LOK ADALAT AWARD

Section 21 (2) of the Legal Services Authorities Act, 1987 states that
‘every award made by a 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’
and the same Section also states that every award of the Lok Adalat shall be
deemed to be a decree of a civil court. The major defect of the mechanism of
Lok Adalat is that it cannot take a decision, if either one of the parties, is not willing for a
settlement.

The Supreme Court has held in P.T. Thomas vs. Thomas Job AIR 2005 SC 3575 that an award
of a Lok Adalat is final and permanent and equivalent to decree executable, and the same is an
ending to litigation among the parties (that is, no appeal lies against such an award).

However it is a well-established principle of law that the writ jurisdiction of a High Court
cannot be barred even in this situation.

VIII. CONCENT OF PARTIES

The most important factor to be considered while deciding the cases at the Lok Adalat is the
consent of both the parties. It cannot be forced on any party that the matter has to be decided by
the Lok Adalat. However, once the parties agree that the matter has to be decided by the Lok
Adalat, then any party cannot walk away from the decision of the Lok Adalat. In several

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instances, the Supreme Court has held that if there was no consent the award of the Lok Adalat is
not executable and also if the parties fail to agree to get the dispute resolved through Lok Adalat,
the regular litigation process remains open for the contesting parties.

The Supreme Court has also held that compromise implies some element of accommodation on
each side. It is not apt to describe it as total surrender. A compromise is always bilateral and
means mutual adjustment. Settlement is termination of legal proceedings by mutual consent. If
no compromise or settlement is or could be arrived at, no order can be passed by the Lok Adalat.

IX. BENEFITS OF LOK ADALATS

The benefits that litigants derive through the Lok Adalats are many.

1. First, there is no court fee and even if the case is already filed in the regular court, the fee
paid will be refunded if the dispute is settled at the Lok Adalat.

2. Secondly, there is no strict application of the procedural laws and the Evidence Act while
assessing the merits of the claim by the Lok Adalat. The parties to the disputes though
represented by their advocate can interact with the Lok Adalat judge directly and explain
their stand in the dispute and the reasons therefore, which is not possible in a regular court of
law.

3. Thirdly, disputes can be brought before the Lok Adalat directly instead of going to a regular
court first and then to the Lok Adalat.

4. Fourthly, the decision of the Lok Adalat is binding on the parties to the dispute and its order
is capable of execution through legal process. No appeal lies against the order of the Lok
Adalat whereas in the regular law courts there is always a scope to appeal to the higher forum
on the decision of the trial court, which causes delay in the settlement of the dispute finally.
The reason being that in a regular court, decision is that of the court but in Lok Adalat it is
mutual settlement and hence no case for appeal will arise. In every respect the scheme of Lok

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Adalat is a boon to the litigant public, where they can get their disputes settled fast and free
of cost.

5. Fifthly, faster and inexpensive remedy with legal status.

The system has received laurels from the parties involved in particular and the public and the
legal functionaries, in general. It also helps in emergence of jurisprudence of peace in the larger
interest of justice and wider sections of society. Its process is voluntary and works on the
principle that both parties to the disputes are willing to sort out their disputes by amicable
solutions. Through this mechanism, disputes can be settled in a simpler, quicker and cost-
effective way at all the three stages i.e. pre-litigation, pending-litigation and post-litigation.

Overall effect of the scheme of the Lok Adalat is that the parties to the disputes sit across the
table and sort out their disputes by way of conciliation in presence of the Lok Adalat Judges,
who would be guiding them on technical legal aspects of the controversies.

The scheme also helps the overburdened Court to alleviate the burden of arrears of cases and as
the award becomes final and binding on both the parties, no appeal is filed in the Appellate Court
and, as such, the burden of the Appellate Court in hierarchy is also reduced. The scheme is not
only helpful to the parties, but also to the overburdened Courts to achieve the constitutional goal
of speedy disposal of the cases. About 90% of the cases filed in the developed countries are
settled mutually by conciliation, mediation etc. and, as such, only 10% of the cases are decided
by the Courts there. In our country, which is developing, has unlike the developed countries,
number of Judges disproportionate to the cases filed and, hence, to alleviate the accumulation of
cases, the Lok Adalat is the need of the day.

The major defect of the mechanism of Lok Adalat is that it cannot take a decision, if either
one of the parties, is not willing for a settlement. The adamant attitude shown by one among
the parties will render the entire process futile. Even if all the members of the Lok Adalat are
of the opinion that the case is a fit one for settlement, under the present set-up, they cannot
take a decision unless all the parties consent.

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X. PERMANENT LOK ADALATS

Permanent Lok Adalats briefly summarized by the NALSA Website (https://nalsa.gov.in/lok-
adalat/permanent-lok-adalat)

The other type of Lok Adalat is the Permanent Lok Adalat, organized under Section 22-B of The Legal
Services Authorities Act, 1987. Permanent Lok Adalats have been set up as permanent bodies with a
Chairman and two members for providing compulsory pre-litigative mechanism for conciliation and
settlement of cases relating to Public Utility Services like transport, postal, telegraph etc. Here, even if the
parties fail to reach to a settlement, the Permanent Lok Adalat gets jurisdiction to decide the dispute,
provided, the dispute does not relate to any offence. Further, the Award of the Permanent Lok Adalat is
final and binding on all the parties. The jurisdiction of the Permanent Lok Adalats is upto Rs. One Crore.
Here if the parties fail to reach to a settlement, the Permanent Lok Adalat has the jurisdiction to decide
the case. The award of the Permanent Lok Adalat is final and binding upon the parties. The Lok Adalat
may conduct the proceedings in such a manner as it considers appropriate, taking into account the
circumstances of the case, wishes of the parties like requests to hear oral statements, speedy settlement of
dispute etc.

WHAT ARE PUBLIC UTILITY SERVICES4 (PUS)?

As per the Legal Services Authority Act, (Amendment Act), 2002, Permanent Lok Adalats
(Public Utility Services) have been constituted at district level. Pre-litigative cases relating to
Public Utility Services are decided in these Lok Adalats. The following can be called Public
Utility Services:

1. Transport services for the carriage of passengers or goods by Air, Road or Water
2. Postal, Telegraph or Telephone Service
3. Supply of Power, Light or Water to the Public by any Establishment
4. System of Public conservancy or Sanitation
5. Service in Hospital or dispensary
6. Insurance Services
7. Banking Services
8. Finance Services

4
http://pulsa.gov.in/?q=permanent-lok-adalat-public-utility-services-0

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9. Immigration, LPG connection their supply and refill

10. Adhar Card, Ration Card, Voter Identity Card and BPL Card
11. Old age and widow pension
12. Shagun Scheme and Unemployment allowance
13. Public distribution system services
14. Education or Educational Institutions; or housing and real estate service
15. Any other services included through a Notification by the State Government, from time
to time.

LEGISLATIVE PROVISIONS REGARDING PERMANENT LOK ADALATS

In 2002, Parliament brought about certain amendments to the Legal Services Authorities Act,
1987. The said amendment introduced Chapter VI-A with the caption PRE LITIGATION
CONCILIATION AND SETTLEMENT. Section 22-B envisages establishment of
"PERMANENT LOK ADALATS (PLA)" at different places for considering the cases in respect
of Public Utility Services (PUS).

HOW TO FILE A CASE IN PERMANENT LOK ADALAT?

Cases relating to Public Utility Services can be filed through an application on plain paper before
the Chairman, Permanent Lok Adalat for Public Utility Services. The pecuniary jurisdiction of
the Permanent Lok Adalat is 25 Lakh Rupees.

BENEFITS OF PERMANENT LOK ADALATS

1. Speedy disposal of Cases.

2. No Court fee is required for filing the Case.
3. Award of Permanent Lok Adalat is deemed to be the decree of a Civil Court.
4. No appeal can be filed against the award of Permanent Lok Adalat.
5. Decisions are final.

Punjab Legal Services Authority has established 22 Permanent Lok Adalat (Public Utility Services)
in different district Amritsar, Bathinda, Barnala, Ferozepur, Faridkot, Fazilka, Fatehgarh Sahib,
Gurdaspur, Hoshiarpur, Jallandhar, Kapurthala, Ludhiana, Mansa, Moga, Patiala, Pathanakot, Rupnagar,
S.A.S. Nagar (Mohali), Sangrur, Shaheed Bhagat Singh Nagar, Sri Muktsar Sahib and Tarn Taran Sahib.

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MECHANISM OF PERMANENT LOK ADALATS (HEREINAFTER REFERRED TO

AS ‘PLA’)

If there is a dispute with respect to PUS, as per Section 22-C (1), any party to such a dispute can,
make an application to PLA for the settlement of that dispute . The party making such application
need not be a party who raises a claim against a public utility service. If a claim is made by one
against a public utility service, the establishment carrying out the public utility service can also
raise that dispute before PLA to resolve it. The only limitation is that PLA shall not have
jurisdiction to consider a dispute relating to an offence not compoundable under any law or any
matter where the value of the property in dispute exceeds Rs 10 lakhs. But the Central
Government can, by an appropriate notification, increase this limit. Once an application has been
made to PLA by one party, no party to that application shall invoke the jurisdiction of any court
in the same dispute.

Section 22-C (3) provides that when an application is filed raising a dispute, the parties shall be
directed to file written statements with appropriate proof, including documents and other
evidence. Copies of documents produced and statements made by the parties shall be given to
each other. The PLA shall first conduct conciliation proceedings between the parties to bring
about an amicable settlement to the dispute. It is the primary duty of PLA as per Section 22-C(4).
While conducting such conciliation proceedings, it is incumbent on the members of PLA to
assist the parties to reach an amicable settlement. PLA can specify its own procedure for
deciding the dispute coming before it and the proceedings shall be deemed to be judicial
proceedings.

"For the purpose of holding any determination" the Permanent Lok Adalat shall have the same
powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit,
in respect of summoning and enforcing of attendance and examining of witnesses, discovery or
production of documents, reception of evidence on affidavits, requisitioning of public records
and documents and such other matter as the Government may prescribe.

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ESTABLISHMENT AND COMPOSITION OF PERMANENT LOK ADALATS

PLA has to be established by either the National Legal Services Authority or the State Legal
Services Authorities. It shall have three members; the Chairman, who is or has been a District
Judge or an Additional District Judge or has held a judicial office higher in rank than that of a
District Judge and two other members having adequate experience in public utility service. Such
persons shall be appointed by the State or the Central Authority, as the case may be, upon
nomination by the respective Governments. But at the same time, such nomination shall be on
the recommendation of the Central or the State Authority.

XI. CONCLUSION

India’s large population and the illiterate masses have found the regular dispensation of justice
through regular courts very cumbersome and ineffective. The special conditions prevailing in the
Indian society and due to the economic structure, highly sensitized legal service is required
which is efficacious for the poor and ignorant masses. The Lok Adalat movement is no more an
experiment in India. It is now a success and but needs to be replicated in certain matters.

As aforesaid in the objective of the Lok Adalats, the intention of the legislator has been to put an
end to the disputes summarily and reduce the burden of the courts. Therefore, the Lok Adalats
decide the matters on a consent/ compromise basis. The Lok Adalat passes the award after the
parties have agreed on the settlement and have given consent over it. The Lok Adalat will passes
the award with the consent of the parties, therefore there is no need either to reconsider or review
the matter again and again, as the award passed by the Lok Adalat shall be final. Even as under
Section 96 of C.P.C. that "no appeal shall lie from a decree passed by the Court with the
consent of the parties". The award of the Lok Adalat is an order by the Lok Adalat under the
consent of the parties, and it shall be deemed to be a decree of the Civil Court, therefore an
appeal shall not lie from the award of the Lok Adalat as under Section 96 C.P.C.

The High Court of Andhra Pradesh held that, in Board of Trustees of the Port of
Visakhapatnam v. Presiding Officer, Permanent, Lok Adalat: ‘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
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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.’

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