SYMBIOSIS LAW SCHOOL, PUNE

REPORT ON LOK-ADALAT
ALTERNATIVE DISPUTE RESOLUTION- ASSIGNMENT I

A student report on a visit to Lok-Adalat at the Pune District Court held on August 13, 2016

By: Preethi Kavilikatta To: Prof. Shirish Kulkarni

PRN: 14010122025

1|P a g e
 SYMBIOSIS LAW SCHOOL, PUNE

INTRODUCTION:

It goes without saying that the backlog of pending cases in the courts of India has severed the faith of Indian
citizens in seeking justice. Instead of waiting in queues for years and passing on litigation by inheritance,
people are inclined either to avoid litigation or to start resorting to extra-judicial methods1. As a measure to
restore this faith and encourage speedy disposal of such myriad of cases, the Judiciary has been actively
promoting various Alternative Dispute Resolution methods.

One such effective method is the concept of “Lok-Adalat.” The literal translation of the Hindi moniker,
Lok-Adalat means, “People’s Court.” The idea of Lok-Adalat was mainly advocated by Justice P.N
Bhagwati, a former Chief Justice of India 2 . Lok-Adalat is India’s unique form of Alternative Dispute
Resolution, which has proven to be a successful alternative to conventional litigation. It has been given a
statutory recognition by the virtue of the Legal Services Authorities Act, 19873.

The system of Lok-Adalat is based on the principles of Panch Parmeshwar of Gram Panchayats4. Lok-
Adalat is a non-adversarial system, whereby mock-courts are held by the State Authority, District Authority,
Supreme Court Legal Services Committee, High Court Legal Services Committee or Taluka Legal Services
Committee 5 . It is a forum where voluntary efforts are aimed at bringing about settlement of disputes
between the parties through conciliatory and persuasive efforts6. This service is provided free of charge to
the litigants by Courts and Central/State government.

Typically, a Lok-Adalat panel is a three-member panel who act as conciliators and are generally amoung
serving or retired judicial officers, social workers and advocates7. Both pre-litigation and post-litigation
efforts are invited by the Lok-Adalat. The Lok-Adalat can deal with all civil cases: matrimonial disputes,
land disputes, property disputes, labour disputes and compoundable criminal cases. The award made by
Lok-Adalat is deemed to be a decree of a Civil Court and is final binding on all parties8. No appeal lies
before any court against its award.

To witness such a session of Lok-Adalat, the students of Symbiosis Law School, Pune under the guidance
of Prof. Shirish Kulkarni, were taken to the Pune District Court on August 13, 2016 with the objetive to
gain first-hand experience of the same and develop a deeper sense of understanding of its functioning in
reality. This report is an effort to elaborate on this practical experience and explain the legal aspects that
are linked to it.

1
Mediation and Case Management- Their co-existence and correlation- A paper presented during Indo-US Judicial Exchange at U.S
Supreme Court by Niranjan Bhatt.
2
A Critical Analysis of Lok-Adalat in India, Dr. Deepa Patil, Ismailsaheb Mulla Law College, Satara, Research Front, Volume 3,
No.2, April- June 2015
3
Section 19,20,21 of the Legal Services Authorities Act, 1987
4
A Critical Analysis of Lok-Adalat in India, supra.
5
Ibid.
6
Alternatives to Litigation in India, P.C Rao, Page 27
7
ibid
8
Section 21, Legal Services Authorities Act, 1987

2|P a g e
 SYMBIOSIS LAW SCHOOL, PUNE

OBSERVATION OF THE PANEL:

As the students entered the premises of the Court, a brief introduction to the infrastructural aspects of the
Lok-Adalat was given. One of the noteworthy points of the information imparted was that, that every court
room had a police station (cell) adjoined to it, which was a manifestation of an effort made to ensure co-
ordination between different agencies. A list of the number of Lok-Adalat panels, with the names of the
panel members and the nature of the disputes to be heard was briefed upon.

Further, in a dialogue session with one of the senior authorities of the District Legal Services Authority the
students were given additional details of the panel- 6 panels in toto, that ware going to hear matters related
to banks, motor vehicles compensation, cheque bouncing cases, and a few criminal matters. The students
were told that the panels were further divided into pre-litigation and litigation forums. An interactive session
on the nature and provisions of the Legal Services Authorities Act, 1987 was conducted. The senior
authority also shed light on the success rate this form on alternative dispute resolution mechanism has
achieved in the past years. He mentioned that the dedication amoung the legal fraternity is so much that
they have successfully arranged mobile clinics- in which these panel members travel to various villages to
resolve disputes.

Students were divided into 6 groups as per the number of panels. The students of Panel 3 before entering
the court room were informed that the panel intended to hear only banking matters of the pre-litigation
stage. The court room had make-shift tents set up for various banks with their respective representatives
and other litigants. It was informed to the students by a Court officer that the District Legal Services
Authority on the receipt of application from any of the parties of the pre-litigation stage refer such matters
to the Lok Adalat for amicable settlement. These sessions are held usually on 2nd and 4th Saturday of a
month. The Panel Members of Panel 3 were a JMFC Judge and two advocates. The officer mentioned that
the litigants either represent themselves or through advocates to negotiate on the monetary value acceptable
to both parties in banking matters. The lawyer is not obligated to present a ‘Vakalatnama’ to the panel
members on appearing on behalf of the litigant.

Typically, in banking matters, the Bank issues a notice to opposite party for payment of credit dues, or EMI
etc, depending on the nature of transaction. On having communicated this, the party approaches the bank
to provide with justification for non-payments or to seek extension. If such a dialogue goes in vain, both
parties agree to settle the matter through Lok-Adalat. The parties negotiate on the terms of compromise,
which is usually a reduction in the interest rate, repayment of credit due in installments etc. This is done
with the assistance and inputs from the panel members, especially to seek clarification on points of legal
value. Once the parties reach to a conclusion, a “Compromise Form” (refer to Annexure A) is signed and
submitted to the panelists. The party is given a ‘no due certificate’ by the Bank only after the repayment of
the entire amount is made in consonance with the terms and conditions agreed upon before the panel
members.

However, there may be instances where the parties have approached the Lok-Adalat over previously settled
matters, in which the payment has not been made by the same party. In such cases, the panel members seek
to make further arrangements of compromise after hearing both the parties. The reasons could be lack of
financial resources, bankruptcy, personal etc. One such case that of a farmer who had taken a loan from the
bank but failed to make payment after a previous attempt to settle the issue. The panel members after much
deliberation and questioning realized that the farmer’s loan was taken to give dowry for his daughter’s

3|P a g e
 SYMBIOSIS LAW SCHOOL, PUNE

marriage and repayments in such a short span of time was not possible for him. The Bank later sympathized
with his condition and agreed to further reduce the rate of interest and extend the time-period.

On having a conversation with one of the bank representative who deals with automobile loans, it was clear
that the Banks approached Lok Adalat not with an intention to take money by hook or crook but to settle
the matter in an amicable manner. The representative informed that usually there are internal guidelines
given to them with respect to settle of these issues. However, the can use their discretion in terms of
reduction of interest value or extension of dates after considering the condition of the other party. He
mentioned that the people of all economic strata like from the car owners of Maruti to the car owners of
Mercedes Benz today willingly agree to settle the dispute with the help of Lok-Adalat for its efficiency.
Although, much interaction with the panel members was not possible, the students gathered information by
speaking to various litigants and bank representatives.

However, at the end of day students had a joint session with the panel members of Motor Vehicles Tribunal
presided by Judge A.R Mohammad who shed light on the cases that are brought before him, the procedure
and effective methods used by the panel members in resolving such disputes. Furthermore, a brief
interaction with the authorities of National Legal Services Authority (NALSA) marked the end of the trip.

LEGISLATIVE AND JUDICIAL CONTRIBUTION UNDER LAW:

The Legal Services Authorities Act pursuant to the constitutional mandate of in Article 39-A of the
Constitution of India, contains various provisions for the settlement of disputes through Lok Adalats. It is
an Act to constitute legal service 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 and other disabilities, and to organize Lok Adalats to secure that the operation of legal
system promotes justice on the basis of equal opportunity9. In the case of Suku Das v. Union Territory of
Arunachal Pradesh10 it has been held that the failure to provide legal aid to an indigent accused, would
vitiate a trial. It might even result in setting aside and conviction or sentence. Thus, every notion of fair trial
is upheld by this statue.

Realizing the need for more number of Lok Adalats, in 2002, the Parliament amended the Legal Services
Authorities Act and made provisions for establishment of permanent Lok Adalats for public utility services.
Dr. A.S Anand, the former Chief Justice of India had emphasized upon the idea of establishing a permanent
Lok Adalat in all districts in the country. He, as an Executive Chairman of the National Legal Services
Authority (NALSA), wrote a letter to all Chief Justices of the High Court requesting them to establish
Permanent Lok Adalats at all levels11.

In the significant case of Abdul Hassan v. Delhi Vidyut Board12 the Delhi High Court also emphasized to
the idea of setting up of Permanent Lok Adalats and mentioned that this should be done not only with the

9
Role of Alternative Dispute Resolution Methods in Development of Society: ‘Lok Adalat in India,’ Anurag K Agarwal, Indian
Institute of Management, Ahmedabad, November 2005
10
(1986) 2 scc 401
11
S.S Sharma, Legal Services, Public Interest Litigation and Para Legal Services, 188 (2003)
12
AIR 1999 Del 88

4|P a g e
 SYMBIOSIS LAW SCHOOL, PUNE

objective to reduce the pendency of matters in Court, but also in the light of Article 39-A and object of the
Act of 1987. Jurisdiction of PLA is confined only to Public Utility Services and so it cannot dispose of
matrimonial dispute being a public utility services13. In the case of Dinesh Kumar v. Balbir Singh14 the High
Court held that the Permanent Lok Adalat can only take cognizance of the matter if it is not pending before
any other court. But in the present case, the matter was pending before the Motor Accident Claims Tribunal
and the same could only be referred to Lok Adalat and the same could not be referred to Permanent Lok
Adalat. Thus, the order passed by Permanent Lok Adalat is without jurisdiction and liable to e set aside.

Besides the Legal Services Authorities Act, there have been several other changes in the law in the recent
times and one of the most important being the amendment in the Code of Civil Procedure. Section 89 of
the Code of Civil Procedure as amended in 2002 has opened scope for introduction of conciliation,
mediation and pre-trial settlement methodologies. Once the model rules framed by the Committee headed
by Justice Jagannadha Rao, Chairman, Law Commission of India under the directions of the Supreme Court
of India have been adopted by the High Courts, there will be need for the funds to be sanctioned to meet
the need for requisite infrastructure and for employment for mediators and conciliators as a part of justice-
delivery system15.

The salient features of Lok Adalat in the light of judicial pronouncement is as follows:

1. The jurisdiction of Lok Adalat is hegded by the expression ‘to determine and arrive at a compromise
or settlement.’ In Legal Terminology, it connotes that the jurisdiction that could be exercised by
the Lok Adalat but cannot extend to deciding a dispute where one of the parties is not amendable
or agreeable to arrive at a compromise or settlement16. In the case of State of Kerala v. Erakulum
District Legal Services Authority17 the award was issued by a Lok Adalat pertaining to a decision
to request an investigating officer to do a particular thing in a particular manner. The Court held
that such a request has to be read only as a command to the investigation officer and not a request.
Hence, such award passed by Lok Adalat is not permissible.

2. However, even without the parties agreeing for a reference of a case to the Lok Adalat and without
any application from any one of the parties for such reference, the Court on its own motion on being
satisfied that the matter is an appropriate one to be taken cognizance by the Lok Adalat, can be
referred to Lok Adalat. But such reference must be made only after providing a reasonable
opportunity of being heard to both the parties. However, in the case of Commissioner, Karntaka
State Public Instructions (Education) Bangalore v. Henamant18 the High Court held that when the
very reference of the case to the Lok Adalat is in contravention of the provisions of the Act, as the
Court could not have referred the matter to Lok Adalat when both the parties to the suit had not
consented for the matter being referred to the Lok Adalat.

13
Rita Kumari v. Shyam Sunder, AIR 2007 DOC 259 Cal
14
AIR 2008 HP 59
15
Role of Alternative Dispute Resolution Methods in Development of Society: ‘Lok Adalat in India, supra
16
Chapter V, Lok Adalat Law and Judicial Approach, Shodhganga
17
AIR 2008 Ker 70
18
AIR 2002 Kant 446

5|P a g e
 SYMBIOSIS LAW SCHOOL, PUNE

3. The Lok Adalat is required to see that it shall with utmost effort on or with settlement of parties,
be guided by the principle of justice, equity and fair play. Every Bench of Lok Adalat may evolve
its own procedure for conducting the proceedings before it and shall not be bound by either the
Code of Civil Procedure, Code of Criminal Procedure of the Indian Evidence Act.

4. In Sreedharan T v. Sub-Inspector of Police, Baluseery Police Station19 the High Court highlighted
that the procedure followed by the Lok Adalats and held that the various provisions contained in
the Act also make it clear that the Lok Adalats have no adjudicatory functions. It cannot pass any
independent verdict/order/award arrived at by any decision making process. It can only persuade
the parties to the dispute, by any known methods of conciliation, mediation etc, and with utmost
expedition, to arrive at a compromise or settlement and determine the case in accordance with
bilateral compromise.

5. Whenever a case or matter is settled by Lok Adalat, then it passes the award on the basis on
compromise or agreement between the parties. It was held in P.T Thomas v. Thomas Job20 that
every award of the Lok Adalat shall be deemed to be a decree of the Civil Court. In the case of
Damera Raj Kumar v. Doli Sriniwas 21 the petitioner and the respondent had compromised the
matter outside court. The matter was referred to the Lok Adalat for recording the compromise and
award was made by the Lok Adalat. Such a compromise was duly signed by the parties and their
advocates. The award was challenged on the grounds that the consent of the petitioner was taken
by coercion. The High Court of Andhra Pradesh ruled that the plea or coercion or obtaining awards
by threats predominantly are questions of fact. On such grounds it cannot be said that compromise
arrived at by the parties at Lok Adalat are vitiated.

6. In Board of Trustees of Port of Vishakhapatnam v. Presiding Officer Permanent Lok-Adalat-cum-

7. The Act does not say anything regarding the manner of execution of award of Lok Adalat. But the
provisions in respect of execution of award are laid down in the Rules made under the provisions
of the Act by the State.

8. Lok Adalat is a unique institution which dispenses justice to the parties to the parties free of cost.
As per Section 21(1) read with Rule 28-A provides that in respect of cases settled through the
medium of Lok Adalat, the Court fees affixed at the time of the institution of the case shall be
refunded in a manner provided under the Court Fees Act, 1870. In Salem Advocate Bar Association
v. Union of India 23 the Supreme Court directed to State Government to amend their court fee

19
2009 CrilJ 1249 (Ker)
20
AIR 2005 SC 3575
21
AIR 2007 AP 14
22
(2000) 5 ALT 577
23
AIR 2005 SC 3353

6|P a g e
 SYMBIOSIS LAW SCHOOL, PUNE

legislations on the lines of amendments made in central court fees. The amendment made to refund
court fees in cases settled as per Section 89 of CPC.

CONCLUSION:

On the basis of legislative interpretation of the Legal Services Authorities Act, 1987 and various judicial
pronouncements given by the Supreme Court of India and the High Court it is evident that the Lok Adalat
system has been established with the objective to promote justice on the basis of equal opportunity.
However, the objective of the Act shall be met only if it reaches the grass root levels, meaning, more focus
should be shed on access to Lok Adalats to the rural population.

These rural Lok Adalats should specially focus on the problems likely to be faced by such population which
could be disputes pertaining to agricultural loans, matrimonial disputes, labour issues etc. One such
suggestion would be the concept of mandatory “public hearing” in the rural set-up under an institutional
set-up which could act as a precursor for a case to be taken up by Lok Adalat. This idea is inspired by the
idea of “Jun Sunwai” programme of contract workers organized by Mazdoor Kisan Shakti Sangathan.

The idea of these mandatory “Public hearings” is to ascertain whether a case can be settled by sending an
application to the Lok Adalat. These public hearings could have panel members who are social workers and
lawyers who would be able to have a counseling session with these people before suggesting Lok Adakat
as a mode of dispute resolution. The idea is to exclude judicial officers in such hearings since they are
already over-burdened with work. Another advantage would be that this public hearing would filter the
cases that are referred to Lok Adalat, that would prevent in wasting time of the Lok Adalat panelists. It is
to avoid frivolous cases from clogging the machinery of Lok Adalat. It would help not in giving these rural
population an opportunity to be heard at their own convenience but also to reduce the backlog in cases
because of the filtering mechanism. Jun Sunwai and Lok Adalat may act as a double-filter mechanism if
used effectively.

Also, another suggestion could be a permanent Lok Adalat set-up for matters of all nature and not limited
to Public Utility matters. If Lok Adalat has proven to be a successful alternative, then a permanent Lok
Adalat for all matters would only prove to be a boon than a bane.

In conclusion, it can be said that awareness and literacy of such efforts such be given a priority by all
institutions of the society. For a progressive society, it is best to ensure that all citizens are aware of the
judicial remedies available to them. And such a convenient dispute resolution mechanism as them should
be given a preference for speedy disposal of cases.

7|P a g e