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Permanent Lok Adalats

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09-May-2024

Legal Services Authority Act, 1987

Source: Jharkhand High Court

Why in News?

Recently, the Jharkhand High Court in the matter of the Chairman-cum-Managing Director, National Insurance Co. and Ors v. Kisha Devi and Ors., has held that the Permanent Lok Adalat has a right to decide the dispute which could not be settled by a settlement agreement between the parties and the dispute does not relate to any offence.

What was the Background of the Chairman-cum-Managing Director, National Insurance Co. and Ors v. Kisha Devi and Ors. Case?

In this case, the husband of the claimant obtained a personal accident insurance from the Senior Divisional Manager, National Insurance Company Limited, for a sum insured of Rs.3,00,000/-.
The husband of the claimant, Rajeshwar Prasad Singh was gunned to death on 19^th November 2003, where-after, an FIR was lodged, and post-mortem of the deceased was conducted.
On the sudden murder of the deceased the claimant remained under deep trauma and took time to recover from the trauma.
After recovering from trauma and other diseases she sent information regarding the death of her husband to the Insurance Company.
The insurance company rejected the claim, citing policy conditions.
Thereafter the claimant filed a case before the Permanent Lok Adalat, Sahibganj.
The Permanent Lok Adalat, Sahibganj had allowed the claim of the claimant and ordered the petitioners that they must pay a sum of Rs.3,00,000/- with interest @ 9%.
Being aggrieved from the judgement passed by the Permanent Lok Adalat, Sahibganj, the petitioner has filed the instant writ petition before the Jharkhand High Court for quashing the judgment passed by the Permanent Lok Adalat.
Dismissing the writ petition, the High Court held that the Permanent Lok Adalat has rightly exercised its jurisdiction and this Court does not find any illegality in the impugned judgment.

What were the Court’s Observations?

Justice Navneet Kumar observed that the Permanent Lok Adalat has a right to decide the dispute which could not be settled by a settlement agreement between the parties and the dispute does not relate to any offence. Such right has been vested in Permanent Lok Adalat with respect to the cases which arise in relation to Public Utility Services such as transport service for the carriage of passenger or goods by air, road or water; postal telegraph or telephone services; supply of power, light or water to the public by any establishment; system of public conservancy or sanitation; service in hospital or dispensary; or insurance service etc. need to be settled urgently so that people get justice without delay.
It was further stated that the Permanent Lok Adalat shall be guided by the principles of natural justice, objectivity, fair play equity and other principles of natural justice in exercise of its jurisdiction either in the process of conciliation and settlement or in deciding a dispute on merit under the Legal Services Authorities Act, 1987.

What are Permanent Lok Adalats?

About Lok Adalats:

Introduction	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.
First Lok Adalat	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 9^th 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 Indian Penal Code, 1860 (IPC) 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.

Permanent Lok Adalats:

About:

The Legal Services Authorities Act, 1987 was amended in 2002 to provide for the establishment of the Permanent Lok Adalats to deal with cases pertaining to the public utility services like transport, postal, telegraph etc.

Essential Features:

These have been set up as permanent bodies under Section 22-B of the Legal Services Authorities Act, 1987.
It shall consist of a Chairman who is or has been a district judge or additional district judge or has held judicial office higher in rank than that of the district judge and two other persons having adequate experience in public utility services.
It shall not have jurisdiction in respect of any matter relating to an offence not compoundable under any law. The jurisdiction of the Permanent Lok Adalats is upto Rs. 1 Crore.
The award of the Permanent Lok Adalat is final and binding upon the parties.
Before the dispute is brought before any court, any party to the dispute may make an application to the Permanent Lok Adalat for settlement of the dispute. After an application is made to the Permanent Lok Adalat, no party to that application shall invoke jurisdiction of any court in the same dispute.