Lok Adalat Jurisdiction: No Pecuniary Limits, Only Territorial Boundaries Apply

20-Apr-2026

Legal Services Authorities Act, 1987

Prasanth P. Kumar and Anr. v. State of Kerala and Ors.

"Insofar as Section 19(5) has not spoken about any 'pecuniary jurisdiction' and has only spoken about 'territorial jurisdiction,' the petitioners are not entitled to succeed."

Justice Harisankar V. Menon

Source: Kerala High Court

Why in News?

A bench of the Kerala High Court comprising Justice Harisankar V. Menon, in the case of Prasanth P. Kumar and Anr. v. State of Kerala and Ors. (2026), held that a Lok Adalat can settle disputes of any pecuniary value falling within its territorial jurisdiction, since Section 19(5) of the Legal Services Authority Act, 1987 does not impose any pecuniary restriction on Lok Adalats.

The Court dismissed a writ petition challenging an award passed by the Adoor Taluk Legal Services Committee on the grounds of fraud and lack of jurisdiction.

What was the Background of Prasanth P. Kumar and Anr. v. State of Kerala and Ors. (2026) Case?

The petitioners and the party respondent had entered into an agreement for sale, pursuant to which the respondent paid an advance amount of more than ₹98 lakhs.
The sale did not materialise, and the petitioners failed to refund the advance amount, compelling the respondent to institute a complaint before the Taluk Legal Services Authority.
The petitioners were directed to appear via telephone and did so along with a lawyer. Thereafter, the impugned award was passed, recording the petitioners' undertaking to refund the advance amount, and post-dated cheques were handed over to the respondent.
The cheques were subsequently dishonoured, and the respondent filed an execution petition to enforce the award.
The petitioners objected to the execution petition and approached the High Court challenging the award on grounds of fraud and lack of jurisdiction.

What were the Court's Observations?

On Allegation of Fraud:

The Court rejected the allegation of fraud, noting that the petitioners themselves admitted there was no coercion for their appearance.
The petitioners had appeared before the Lok Adalat along with a lawyer, which negated any claim of undue pressure or misrepresentation.
Mere direction to appear at short notice, and participation in the compromise thereafter, cannot constitute fraud.

On Pecuniary Jurisdiction of Lok Adalats:

The petitioners argued that the Adoor Taluk Legal Services Committee lacked jurisdiction since Adoor Taluk did not have a Sub-Court, and therefore no suit of the relevant pecuniary value could have been instituted there.
The Court rejected this contention, holding that Section 19(5) of the Legal Services Authority Act, 1987 prescribes only territorial jurisdiction for Lok Adalats and makes no reference to pecuniary jurisdiction.
Accordingly, a Lok Adalat can settle disputes of any pecuniary value, provided the matter falls within its territorial limits.
The Court also referred to similar positions of law laid down by the Andhra Pradesh and Kerala High Courts in earlier decisions.

What are Lok Adalats?

Introduction First Lok Adalat	The term Lok Adalat means People’s Court. It is based on Gandhian principles. As per the Supreme Court it is an old form of adjudicating system prevailed in ancient India. It is one of the components of the Alternative Dispute Resolution (ADR) system. It delivers informal, cheap and expeditious justice to the common people. The first Lok Adalat camp was organized in Gujarat in 1982 as a voluntary and conciliatory agency without any statutory backing.
Statutory Recognition	It was given statutory status under the Legal Services Authorities Act, 1987. The Act makes the provisions relating to the organization and functioning of the Lok Adalats.
Organization	The National Legal Services Authority (NALSA) along with other Legal Services Institutions deal with the organization of Lok Adalats. NALSA was constituted under the Legal Services Authorities Act, 1987 which came into force on 9th November 1995.
Composition	Generally, a Lok Adalat consists of a judicial officer as the chairman and a lawyer (advocate) and a social worker as members.
Jurisdiction	A Lok Adalat shall have jurisdiction to determine and to arrive at a compromise or settlement between the parties to a dispute in respect of: Any case pending before any court. Any matter which is falling within the jurisdiction of any court and is not brought before such court. Any case pending before the court can be referred to the Lok Adalat for settlement if the parties agree to settle the dispute in the Lok Adalat.
Proceedings	All proceedings before a Lok Adalat shall be deemed to be judicial proceedings within the meaning of the Bharatiya Nyaya Sanhita, 2023 (BNS) and every Lok Adalat shall be deemed to be a Civil Court for the purpose of the Code of Civil Procedure, 1908 (CPC).
Awards	The award by the Lok Adalat is binding on the parties and it has the status of a decree of a civil court, and it is non-appealable, which does not cause the delay in the settlement of disputes finally.
Benefits	There is no court fee and if the court fee is already paid the amount will be refunded if the dispute is settled at Lok Adalat. There is procedural flexibility and speedy trial of the disputes.