Subject- Alternative Dispute Resolution

Topic- Lok Adalat

(Back Paper Project)

Submitted to :

Submitted by
Pulkit Pareek
B.A.LL.B(9th Sem)

(Asst. Prof.)

TABLE OF CONTENTS
TABLE OF CASES...ii
LIST OF ABBRIEVIATIONS......iii
INTRODUCTION....1
1.1 Definition of Lok Adalat.1
1.2 Problems faced by Courts....1
1.3 Research Methodology....2
1.4 Research Plan...2
a. Aims and Objectives..2
b. Scope and Limitations....2
2. The History of Adalats.3
2.1 Mofussil Diwani Adalat....3
2.2 Small Cause Adalat...3
2.3 Mofussil Fozdari Adalat...4
2.4 Sadar Adalat......4
3. The Birth of Adalats....5
3.1 Legal Services Authorities Act.5
4. Role of Alternative Dispute Resolution..8
5. A Step Forward- Scope of Adalats widened...9
5.1 Amendment Bill.....9
6. Lok Adalats- Breaking Records..10
7. Cases decided by Adalats...11-12

8. CONCLUSIONS ...13
BIBLIOGRAPHY....iv

ACKNOWLEDGEMENT
I take immense pleasure in thanking

wish to express my

deep gratitude to him for his insightful guidance which permitted me to carry out this
work. My consult faculty has been a source of inspiration and I am very thankful to
him for his guidance which helps me in completing this project.
Words are in adequate in offering my thanks to him for his encouragement and cooperation in carrying out the report work last but not the least I would like to thank
my friends.

TABLE OF CASES

1. Abdul Hasan and National Legal Services Authority v. Delhi Vidyut

Board.6

2. Joti Sharma v. Rajinder

Kumar...........................11

3. Alapati Vivekananda v. Karur Vysya Bank

Ltd11
4. Pramod v. Jagbir
Singh.12
5. Kamal Mehta v. General Manager, Rajasthan Roadways Transport
Corporation......................................................................................
.........12
6. Ashok Kumar Goyal v. Anita
Goyal12
7. Nek Ram v. Solay
Ram..12
8. Sikander Singh v. Harjitpal
Singh.13

TABLE OF ABBRIEVIATIONS

ADMR

Alternative Dispute Method Resolution

AIR

All India Reporters

DVB

Delhi Vidyut Board

MNTL

Mahanagar Telephone Nigam Limited

N L S A
T h e
N a t i o n a l
A u t h o r i t y

L e g a l

S e r v i c e s

NIEI

The National Internet Exchange of India

ODR

Online Dispute Resolution

Aug.

August

v.

versus

1. LOK ADALATS:

1.1 Definition of Lok Adalat:

Lok Adalat means peoples court in contrast to the regular law courts established by
the government. The formulation of Lok Adalats first took place in the year 1982. In a
country like India, where millions of people co-exist together, provision of relief
becomes important. Despite the fact that the judicial system in India is well organised
with high level of integrity, the law courts are confronted with problems.

1.2 Problems faced by Courts:

The following are the problems faced by courts in the present era:
(1) The number of courts and judges available in all grades are greatly inadequate,
(2) Increase in flow of cases in recent years due to multifarious Acts enacted by the
Central and State Government s,
(3) The high Cost involved in prosecuting or defending a case in a court of law, due to
heavy court fee, lawyer's fee and incidental charges and
(4) Delay in disposal of cases resulting in huge pendency in all the courts. It was
difficult for the Courts to cope up with the ever-increasing cases with the given
infrastructure and manpower. It is common knowledge that Courts are clogged with
cases. Lok Adalats were formed in order to reduce the backlog of the cases and also
provide relief to litigants who were in a queue to get justice. The concept of
Alternative Dispute Resolution has received much significance in the recent times.
This is being used in order to reduce wastage of court-time and also to transfer the
burden of the courts. This is where Lok Adalats play a key role.

Lok Adalats have shown their significance Accident Claim by settling huge number of
Third Party claims. Lok Adalats have jurisdiction over all matters except matters
relating to offences, which are not compoundable. These were first introduced in the
state of Gujarat in India in March 1982.1

1S. Arunajatesan and S. Subramanian, Lok Adalat for speedy justice, THE HINDU, Hyderabad,
Tuesday, December 18,2001,p.3

1.3 RESEARCH METHODOLOGY:

The main aspect dealt with herein is the significance of Lok Adalats in the Indian
society. An attempt has been made to study the role of Adalats in the judicial system
prior to the Indian independence. Emphasis has also been placed on the provisions of
the Act, which provides for Lok Adalats. For the purpose of research the scholar has
used secondary sources. The main sources of information have been the books from
RMLNLU, library and with the help of the other global source of knowledge, which
is the Internet.

1.4 RESEARCH PLAN:

a. Aims and Objectives:

Through this project the researcher aims to provide a detailed overview of

the role played by Lok Adalats and their importance in the present
scenario. The researcher has scrutinized the mentioned topic and given a
brief study on the same. The researcher has mentioned the important
aspects governing the given topic and
substantiating its relevance with the help of cases.

b. Scope and Limitations:

Within the scope of this project the researcher will discuss the topic along
with other important cases on the same. The cases mentioned herein are
those considered to be of greater importance than the other numerous
cases, which are available with reference to the topic. The core area of
emphasis has been, the definition and functions of Lok Adalats. The
historical aspects have been briefly dealt with. One part has been allotted
to the tracing of the origin and birth of the Adalats. All aspect concerned

with the existence of Lok Adalats have been briefly analysed and put forth
for the reader.

2. THE HISTORICAL PAST OF ADALATS

JUDICIAL SYSTEM IN 1772
The existence of an effective judicial system is not a recent phenomenon
but is a systematic evolution of the judiciary with collective effort by a
large number of people through generations. The truth is that the
traditions of the past have made the modern legal system what it is, and
still live on in it. Let us look at the judicial system prior to the Indian
independence that paved way for the present system of functioning.

Till the first half of 18th Century, the Company held under its sway the
three Presidency Towns of Calcutta, Madras and Bombay leading to the
creation of a judicial system by the Towns. The territories surrounding the
Towns were brought under its control and came to be known as mofussil.
Under Warren Hastingss plan of 1772, the judicial system was divided as
follows.

2.1 Mofussil Diwani Adalat:

This type of court was established in each district with collector as a judge .It was
authorised to decide all civil causes such as disputes relating to real and personal
property, inheritance, marriage, caste, debts and contracts. It was decided that in all
suits regarding inheritance, marriage, caste and other religious usages and institutions,
The laws of the Koran with respect to Mohammedans, and those of the
Shastra with respect to Hindus would be applied. To make the system
workable and to enable the judges to decide cases based on Indian law,
native law officers, kazis, and pundits were appointed to expound

respectively the Muslim and the Hindu laws. The decisions of the Adalat in
cases up to Rs. 500 were final.

2.2 Small Cause Adalats:

In order to facilitate disposal of small cases, provision was made for

disputes up to Rs. 10 to be decided finally by the head farmer of the
pergunnah where the dispute arose. People having petty cases were saved
of much time and expense due to this method of case disposal.

2.3 Mofussil Fozdari Adalat:

This court was established in each district to settle all types of criminal
cases. The Adalat consisted of the Muslim law officers, kazi, mufti and
moulvis. The collector had supervision over these courts. It could not
determine cases determine cases involving sentences of death or
forfeiture of property of the accused; proceedings of such cases had to be
submitted to the Sadar Nizamat Adalat for final orders.

2.4 Sadar Adalat:

The Sadar Diwani Adalats and the Sadar Nizamat Adalat were established
above the Mofussil Adalats. The Sadar Diwani Adalat consisted of the
Governor and members of the Council and was to hear appeals from the
Mofussil Diwani Adalats in cases of over Rs.500.

In the early stages, these courts played an important role in setting up a

foundation

for a judicial system. But however they were not able to meet

the standards required for the society and had certain deficiencies. As a
result there was deterioration of the system.2

3. THE BIRTH OF LOK ADALATS

Parliament enacted the Legal Services Authorities Act 1987, and one of the aims for
the enactment of this Act was to organize Lok Adalat in order to secure the promotion
of justice on the basis of equal opportunity. The Act gives statutory recognition to the
resolution of disputes by compromise and settlement by the Lok Adalats. The concept
has been gathered from the system of Panchayats, which has its roots in the history,
and culture of India. It has a native flavour known to the people. The provisions of the
Act based on indigenous concept are meant to supplement the Court system. They
will go a long way in resolving the disputes at almost no cost to the litigants and with
minimum delay. At the same time, the Act is not meant to replace and supplants the
Court system. The Act is a legislative attempt to decongest the Courts from heavy
burden of cases. There is a need for decentralization of justice.

This form of dispute resolution was made available for settlement of Motor
Third Party claims under the initiative of former Chief Justice of India, Shri
P.N.Bhagwati, since then numbers of Lok Adalats have been organized
throughout the Country through to the satisfaction of the claimants. 3

2 M.P. Jain, Outlines of Indian Legal History, 5 th ed. 2003, 1st rep.
2003,pp.55-62.
3 Kumar Ravish, Significance of Lok
Adalat,http://www.legalserviceindia.com/articles/article+1e.htm,(Aug. 6, 2007)

3.1 Legal Services Authorities Act:

According to Legal Services Authorities (Amendment) Act 1994 effective

from 09-11-1995 has since been passed, Lok Adalat settlement is no
longer a voluntary concept. By this Act Lok Adalat has got statutory
character and has been legally recognized. Certain salient features of the
Act are enumerated below:
Section 19:
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.

Section 20: Reference of Cases

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 cognisance of by the Lok Adalat.
4. Compromise settlements shall be guided by the principles of justice,
equity, fairplay 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.

Section 21:
after the agreement is arrived by the consent of the parties; the
conciliators pass award. 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.

Section 22 :
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. 4
It is emphasized that the legal system should be able to deliver justice
expeditiously on the basis of equal opportunity and provide free legal aid
to secure that opportunities for securing justice are not denied to any
citizens by reasons of economic or other disabilities.

Honourable Delhi High Court has given a landmark decision highlighting

the significance of Lok Adalat movement. It has far reaching ramifications.

Abdul Hasan and National Legal Services Authority v. Delhi Vidyut

Board5 is a case in question. The facts of the case are that the petitioner
filed a writ petition before Delhi High Court for restoration of electricity at
his premises, which was disconnected by the Delhi Vidyut Board (DVB) on
account of non-payment of Bill. Interalia, the grievances of the citizens
were not only confined to the DVB but also directed against the State
agencies like, Municipal Corporation, MTNL and other bodies, Court notices
were directed to be issued to the Delhi State Legal Service Authority.
Judgment Held- His lordship Honourable Mr. Justice Anil Dev Singh passed
the order giving directions for setting up of permanent Lok Adalats.
4 http://lawmin.nic.in/la/subord/nalsa.htm, (Aug.7, 2007)
5 AIR 1999 Del. 88

It should

steer the conscience of all, as there is an increasing need to

make Lok Adalat movement a permanent feature.

4. ROLE OF ALTERNATIVE DISPUTE RESOLUTION

LOK ADALATS IN INDIA:
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5. A STEP FORWARD SCOPE OF LOK ADALATS

WIDENED:
The Union Cabinet in the year 2001 took a step forward and decided to expand the
scope of the Lok Adalat system to provide for compulsory pre-litigative mechanism
for conciliation and settlement of cases relating to public utility services, excluding
the Railways and the banking sector. Lok Adalats had the power to settle disputes
only on the basis of a compromise or settlement between the contending parties. If a
settlement is not arrived at then the case is either returned to the court of law or the
parties are advised to seek remedy in a court of law. Under the new scheme, the Lok
Adalats would, try to bring about a conciliation between the parties. In case of
inability to do so, the Lok Adalats would proceed to dispose of the matter on merit if
6 K . A n u r a g
A g a r w a l
, Role of Alternative Dispute
Resolution Methods in Development of Society: `Lok Adalat in India,
http://ideas.repec.org/p/iim/iimawp/htm (Aug. 10, 2007)

11

it is not related to an offence. The jurisdiction of the Lok Adalats would, however, be
limited to cases up to a monetary value of Rs. 10 lakhs.
5.1 Amendment Bill:
A bill has been introduced in the Parliament to bring about the far-reaching change.
The Bill would amend the Legal Services Authorities Act, 1987, under which the Lok
Adalats had been set up. The Lok Adalat would consist of a chairperson having
judicial experience and two others having adequate experience in the function of
public utilities. After a party before the Lok Adalat for settlement files an application,
no party shall invoke the jurisdiction of any court or tribunal. The awards made by
them would be final and binding and shall not be questioned in any original suit,
application of execution proceeding. An award shall be deemed to be a decree of civil
court.7

6. LOK ADALATS BREAKING RECORDS:

Lok Adalats proved their importance when a total of 3,575 cases, including civil and
criminal cases, were disposed of in a day at the Lok Adalat in Devakottai in Tamil
Nadu. Most of the cases that came up for hearing were disposed of. Supreme Court
Judge A.R. Lakshmanan, who had inaugurated the Lok Adalat, said judges were
7
http://www.hinduonnet.com/thehindu/2002/01/09/stories/20020109014813
00.htm Aug. 8, 2007.

12

trying their best to dispose of the cases as early as possible, but more and more cases
were coming up. This showed that the people had deep faith in the functioning of
courts, he said. The 2,263 Lok Adalats held in Haryana so far had been able to dispose
of as many as 5,39,826 pending cases, providing compensation of about Rs 195 crore
to affected victims of the over 27,000 road accident cases.
The Gujarat State Legal Services Authority is in the forefront, in the whole of India,
on road map of legal services and Lok Adalat and through this indigenous and hybrid
mechanism and method, only in the last three years, more than 11,41,909 cases out of
12,50,214 cases dealt with of different types have been amicably settled to the
satisfaction of parties only in Gujarat.8
This is a clear proof of the capacity of the present day Lok Adalats and also that they
are now becoming an indispensable part of the legal system.

8 http://kelsa.gov.in/lokadalat.htm#A%20round Aug. 8, 2007.

13

7. CASES DECIDED BY LOK ADALATS:

Various types of disputes are settled by Lok Adalats.These include motor vehicle
accident cases where the injured or the dependents of the person died in the accident
have applied for compensation, land acquisition cases where the applications have
been made to government claiming compensation, cases for or against local bodies
such as Town Municipality, Panchayats, Electricity Board and the like, cases
involving commercial banks, matrimonial or maintenance cases, criminal cases which
are compoundable as per law and also cases pending in the lower court.9

The Lok Adalat deals with many matrimonial cases as stated above. In the case of Joti
Sharma v. Rajinder Kumar10, The marriage between the petitioner and first
respondent were solemnized in 1995 and two children were born to them in February
2000. An application was filed by the respondent for dissolution of marriage under
Section 13 of Hindu Marriages Act, which was contested by parties till 21st January
2004 when they filed a joint application under Section 15 of the Act for divorce by
mutual consent. The trial judge referred the matter to the Lok Adalat. The Lok Adalat
awarded a divorce decree while allowing custody of children to remain with
respondent-father. An appeal was made to the higher court.
In the case of Alapati Vivekananda v. Karur Vysya Bank Ltd.11 the petitioners had
obtained a loan from the Karur Vysya Bank Limited who were the respondents. At the
pre-litigation stage, the dispute was raised before the Lok Adalat. The Lok Adalat
issued notices and so the petitioners appeared before the Lok Adalat and agreed to pay
9 http://www.hslsa.nic.in/project.htm Aug.7,2007
10 AIR 2007 J&K 35
11

14

an amount of Rs. 1,32,099/- on or before 31-01-.2003 to the Bank and in case of

default, the Bank was entitled for a decree for Rs. 1.32,099/-. A revision was filed. It
was argued that the Lok Adalat did not have the jurisdiction to handle the case but
however the Court decided in favour of the Lok Adalat.
In the case of Pramod v. Jagbir Singh12 the question was of objection against the
order/reward of the Lok Adalat constituted under the Legal Services Authorities act,
1987.It was as to whether an objection petition against the order of Lok Adalat is
entertainable by this Court by invoking the power under Section 151 of the Code of
Civil Procedure. The Lok Adalats are constituted in pursuant to the provisions
contained under the Legal Services Authorities Act, 1987 (hereinafter referred to as
the act). The Constitution, Scope and Jurisdiction of the Lok Adalat has been
prescribed under Sections 19, 20, 21 and 22 of the Act. It was held that every High
Court shall have the power of superintendence over the Lok Adalat and therefore the
High court may entertain appropriate petition under Article 227 of the Constitution of
India against the award which has been made by the Lok Adalat allegedly not tainted
with 'Compromise or Settlement'.
In another case, namely Kamal Mehta v. General Manager, Rajasthan Roadways
Transport Corporation, the Corporation filed objections that the award of the Lok
Adalat be set aside and the matter be returned to the High Court for adjudication. The
Division Bench of this Court while considering the provisions of the Act and the
objections filed against the award made by the Lok Adalat has come to the conclusion
that the procedure for entertaining objections against the award of the Lok Adalat is
unknown to the proceedings envisaged under the Act. It has also been held that such
an award if it does not spell out a compromise as settlement, would clearly violate the
principle of the finality of an award of a Lok Adalat as envisaged under Section 21 of
the Act. As a result, it cannot be treated like a decree, it would amount to
transgression of the powers of the Court.
In the case of Ashok Kumar Goyal v. Anita Goyal13, the petition was filed in the
Adalat but since a compromise could not be reached at between the two parties, the
12 (2003) 133 PLR 365

15

matter was sent back to the High Court for its decision on merits. In the case of Nek
Ram v. Solay Ram14, a revision petition was directed against the decree passed by the
Lok Adalat. By means of this decree, suit of the plaintiff had been decreed against the
petitioner for permanent prohibhitory injunction restraining them from interfering
with the plaintiffs possession of land. The revision was allowed and the decree of the
Lok Adalat was kept aside.

Another case which was decided by a Lok Adalat was that of Sikander Singh v.
Harjit Pal Singh15 the suit for specific performance had been filed and in the Lok
Adalat money decree for a sum of Rs. 1,00,000/- was passed and according to the
terms agreed, the decretal amount was to be paid in instalments. It was agreed that the
amount should become recoverable by the sale of house in question. However, that
decree remained unsatisfied and then execution proceedings started. There again the
matter remained pending for compromise and then ultimately sale was effected. The
revision petition as such being without any merit is dismissed.

It can be very well seen that Lok Adalats in various states deal with a wide variety of
cases

13 I (2001) DMC 553

14 MANU/JK/0053/2001
15( 2005)139PLR591

16

CONCLUSION

The main point that needs attention is that the concept of Lok Adalat is no more taken
to be trial and error based concept in India, but it has become an effective, efficient
and alternative mode of dispute resolution, and is widely accepted as a viable,
economic and timesaving

form of resolution of disputes. It is a concoction of

mediation, negotiation, arbitration and participation. Mutual consent is one principle

that helps in faster and efficient settlement of disputes by the Lok Adalat. It is a
sought after Alternative Dispute Resolution Method [ADRM] in the current scenario
with the advent of technology leading to creation of multinationals where ADR plays
17

a key role for example, in case of mergers. Its aim is to create awareness amongst the
litigants to the effect that their welfare and interest, lies in arriving, at a consensus and
settling

the

matter

peacefully.16

The Indian judicial system is facing flak for its delays in case disposal. Businesses
suffer because disputes are not resolved in a reasonable time. Even with the use of
methods of alternative dispute resolution a high number of disputes end up in a court.
In a country with vast population, every litigant cannot afford to travel and contest in
a court of law. Online Dispute Resolution (ODR) has emerged as a new method,
which may be beneficial in a geographically large country. ODR is the best available
method for resolving such business disputes. The National Internet Exchange of India
(NIXI) has successfully used ODR and the judiciary has also shown a shift towards
use of new technology for dispute resolution.

"Justice shall never be rationed and so goes the saying. The efforts have been to
advance, strengthen and provide for "equal access to justice", which is the heart of the
Indian Constitution, a reality.

16 Action Taken Report, http://darpg.nic.in/arpg-

website/AboutUs/ParliamentaryStandingCommittee/02ReportOnDemandsForGrants.asp Aug. 6,2007

18

BIBLIOGRAPHY

BOOKS:

M.P.Jain, Outlines of Indian Legal History, 5 th

ed., 2003,Wadhwa and Company

Nagpur.

INTERNET AND OTHERS:

Role

of

Alternative

Dispute

Resolution Methods in Development of Society: Lok Adalat in India,

http://pib.nic.in/archieve/lreleng/lyr2002/rmay2002/09052002/r090520025.html.

Justice Jitendra N. Bhatt, http://kelsa.gov.in/lokadalat.htm.

The Hindu,

http://www.hinduonnet.com/thehindu/2002/01/09/stories/2002010901481300.htm.

http://www.hindu.com/thehindu/op/2001/12/18/stories/2001121800060100.htm.

Kumar Ravish, Significance of Lok Adalat,

http://www.legalserviceindia.com/articles/article+1e.htm.
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