Lok Adalat

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Are they courts?

No: SC, 2022

Dhananjay Mahapatra , February 5, 2022: The Times of India

New Delhi: In an important judgment, the Supreme Court has ruled that Lok Adalats are not courts as they do not resort to judicial adjudication in resolving disputes and said that their settlement decrees cannot be cited as a precedent before a court of law to claim similar relief by others who were not party to the compromise before the Lok Adalat. 
Noida authority had issued a notification in March 1983 for acquisition of land in villages situated in Tehsil Dadri for planned industrial development. Land owners were given compensation at the rate of Rs 20 per square yard in November 1984. None of the land owners questioned the rate of compensation and all accepted the amount due to them. 
One Fateh Mohammed filed an application seeking reference against the Award of November 28, 1984 and it was made over to a Lok Adalat, where Noida authority settled with him in 2016 and agreed to pay Rs 297 per square yard, almost 15 times more than the original compensation more than 30 years later. 
The other landowners saw the opportunity and successfully pleaded before

the Allahabad HC for grant of compensation at the rate of Rs 297 per square yard on the ground that Lok Adalat awarded decrees had precedential value. NOIDA challenged the HC order in SC.

A bench of Justices K M Joseph and P S Narasimha framed the question, “Whether the Award passed by a Lok Adalat under Section 20 of the Legal Services Authorities Act, 1987 can form the basis for redetermination of compensation as contemplated under Section 28A of the the Land Acquisition Act, 1894. By the impugned judgment, the HC has taken the view that the Award passed by the Lok Adalat can indeed form the foundation for exercising power under Section 28A of the Act. ”

Writing the judgment, Justice Joseph disagreed with the HC view and said Lok Adalats do not employ any judicial scrutiny and under the legal services act only encourage the parties to settle amicably. It said even though the award by Lok Adalat could be enforceable like a decree, it cannot in the judicial arena have a precedential value.

“It is clear beyond the shadow of any doubt that the jurisdiction of the Lok Adalat under Section 20 is to facilitate a settlement of disputes between the parties in a case. It has no adjudicatory role,” the bench said.

The SC said, “The award that is passed by the Lok Adalat cannot be said to be an award passed under the Land Acquisition Act. It is the compromise arrived at between the parties before the Lok Adalat which culminates in the award by the Lok Adalat. . . The enhancement of the compensation is determined purely on the basis of compromise which is arrived at and not as a result of any decision of a ‘court’ as defined in the Act. “

Allowing the appeal of Noida authority and setting aside the HC order, Justices Joseph and Narasimha said, “We declare that an application under Section 28A of the Land Acquisition Act cannot be maintained on the basis of an award passed by the Lok Adalat under Section 20 of Legal Services Authorities Act. ”

Disposal of cases

2015-18

Lok Adalats dispose of over 50 lakh cases across country every year, February 15, 2018: The Times of India

Cases disposed of by National Lok Adalat, state-wise, 2015-18, year-wise
From: Lok Adalats dispose of over 50 lakh cases across country every year, February 15, 2018: The Times of India

National Lok Adalats, held every two months across India disposed of more than 50 lakh cases annually in the last three years, statistics compiled by the law ministry showed.

Seen as an alternative dispute resolution forum, National Lok Adalats disposed of more than 61 lakh cases, a combination of cases pending in courts and those in the pre-litigation stage, in 2014-2015. The next year, almost 50 lakh such cases were disposed of and in the nine months till December 2017, Lok Adalats disposed of over 29 lakh cases.

The government, with the help of the Supreme Court, has been encouraging alternative dispute resolution forums to bring down the pressure on regular courts, where more than 3.15 crore cases are pending. Lok Adalats adjudicate cases in the pre-litigation stage as well as those pending in courts.

Additional funds have been released for holding morning and evening courts to increase the working hours using existing infrastructure. The government has also provided additional funds to State Legal Services Authorities to enable them to enhance legal aid to the marginalised and empower them to access justice.

UP tops the list of states for disposal of cases through Lok Adalats. In the last three years, the state disposed of 46 lakh cases through these courts. Tamil Nadu, Maharashtra, MP, Odisha, Gujarat and Andhra Pradesh are some other states which have disposed of a large number of cases through Lok Adalats.

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