Permanent Lok-Adalat: An Analysis

5.5 (Alternative dispute resolution) Clinic 1

Submitted to

Dr. Anirban Chakrabarty

(Associate Professor of Law)

Submitted by

Pratik Shende

UG2016-44

Academic year 2018-19

MAHARASHTRA NATIONAL LAW UNIVERSITY, NAGPUR

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Contents
INTRODUCTION ............................................................................................................................................. 3
PERMENENT LOK-ADALAT ........................................................................................................................ 3
CRITICISM ...................................................................................................................................................... 4
CONCLUSION................................................................................................................................................. 5
Bibliography .................................................................................................................................................. 6

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INTRODUCTION

The motive behind adopting and establishing Lok-Adalat was to share the burden that was cast upon
Indian courts to provide justice to the awaiting litigants. It was on March 14, 1982, at Junagarh in Gujarat
that the first Lok Adalat was held. Lok Adalats have witnessed success in settlement of many cases such
as family disputes; related to labor, bank recovery, etc.

Lok Adalats are conceptualized along the idea of equal opportunity. Hence, justice should be served to
each, and it cannot be refused to any citizen of India by any discrimination, be it economic, social or
political. When a statutory status was provided to Lok Adalats, it was mentioned that in case Lok Adalat
passes an award or a compromise, it will be held equivalent to the decree of a court, executable as a
decree of a civil court.

PERMENENT LOK-ADALAT
Lok Adalats are conceptualized along equivalent chance. Consequently, equity ought to be served to each,
and it can't be declined to any subject of India by any separation, be it economic, social or political. At the
point when a statutory status was given to Lok Adalats, it was specified that on the off chance that Lok
Adalat passes a honor or a bargain, it will be held comparable to the declaration of a court, executable as a
pronouncement of a common court.1

Permanent Lok Adalat is a forum where disputes relating to public utility services are resolved through
pre- litigation conciliation and settlement. Section 22 A defines Permanent Lok Adalat (Permanent Lok-
Adalat) and the work area of Permanent Lok-Adalat. Permanent Lok-Adalat has jurisdiction with the
matters relating to Public Utility Services as defined in Section 22 A(b) of Legal Services Authority Act,
1987 which include services such as transport service for the carriage of passengers or goods by air, road
or water; orpostal, telegraph or telephone service; orsupply of power, light or water to the public by any
establishment; orsystem of public conservancy or sanitation; orservice in hospital or dispensary;
orinsurance service.Also, in New India Assurance Co. Ltd. V Sabharathanam, Court held that the disputes
relating to insurance business carried on by Insurance Company was „public utility services‟ under the
said section. Therefore any party to a dispute whose subject matter relates to public utility services can
make an application for the settlement of dispute. But parties making an application should satisfy certain

1
Permanent Lok Adalat For Utility Service,Available athttp://delhicourts.nic.in/PLAPUS%20Broucher%202008.pdf, last visited
on 9th October,2018

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requirements such as the matter being referred to Permanent Lok-Adalat should not be already instituted
before the court, the matter should not be non-compoundable and the value of the property in dispute
should not exceed one lakh rupees2.

While arriving at a settlement under PLA the court should look into the principles of natural justice,
objectivity, fair play, equity and other principles of justice.3The Act empowers the court to make a
settlement which will be binding on the parties and award of such settlement will be deemed to be a
decree of the Civil Court and will be final. This power is authorized to PLA under Section 22-E of the
Act.

However, Permanent Lok Adalat is different from Lok Adalat. The major difference between LA and
PLA is when one of the parties to a dispute, pending before any Court and referred to the regular Lok
Adalat or a pre-litigation case, does not agree, the other party will be advised to pursue his remedies by
approaching a Civil Court but in the Permanent Lok Adalat for Public Utility Services, even if one of the
parties fail to reach an agreement during conciliation proceedings, it may decide the dispute on merits
u/sec.22C(8) of the LSA Act and such a decision shall be final and binding on all the parties thereto and
on persons claiming under them u/sec.22 E (1) and shall not be called in question in any original suit,
application or execution proceeding as per Sec.22 E (4) of the Legal Services Authorites, Act4.

CRITICISM
In one hand where Permanent Lok-Adalat has been effectively resolving the disputein a cost effective and
speedier manner, on the contrary it has been subjected to various criticisms. Firstly, the fact that the
Permanent Lok-Adalat’s resolve their dispute by adjudication instead of conciliation has been criticized.
The heading of Chapter VI-A itself clearly refers to Pre-Litigation Conciliation and Settlement but
Permanent Lok-Adalat while deciding the dispute can come to a settlement even though the parties have
not agreed to it. Hence, if parties do not reach a settlement after conciliation then Permanent Lok-Adalat
has power to decide the dispute without parties‟ agreement. Thus, Permanent Lok-Adalat resolve the
dispute through binding arbitration rather than conciliation. Secondly, when deciding a matter under PLA
it is made clear under Section 22-D that the provisions of the Code of Civil Procedure and the Indian

2
Section 22-C of Legal Services Authority Act, 1987
3 Section 22-C of Legal Services Authority Act, 1987
4 Permanent Lok Adalat, Haryana State Legal Services Authority available at http://hslsa.nic.in/Publications%20PDF/PLA.pdf,

last visited on 9th October 2018

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Evidence Act will not apply. Unfortunately, the determination or decisions so arrived by PLA can be in
aarbitrary or summary manner5.

Thirdly,there is no provision regarding the right to appeal against any award passed by the court. This was
challenged in Bar Council of India6case by the petitioner who pleaded to quash the amendment as right to
appeal against the order of Permanent Lok Adalat has been taken away from the parties to the dispute.
The court in this case held that a statute cannot be rendered unconstitutional merely on the fact that no
appeal is provided to an aggrieved party in a particular statute.11And lastly, composition and
establishment of Permanent Lok-Adalat has also been subjected to criticism. Even though the Act
requires the Lok Adalat panel to be composed of a judge, lawyer and social worker, this is rarely done. It
is usually a single retired High Court judge who decides the cases.7

CONCLUSION
Permanent Lok Adalat has been efficiently resolving the dispute with the objective of “equal access to
justice” to all citizens of India. The amendment made to the Act was significant because it filled the
lacuna of Lok Adalat and made the decisions of the court binding. Disputes relating to public utility
services need urgent attention because prolonged delay may result in irretrievable damage to either party. 8
LokAdalats play a very important role to advance and strengthen “equal access to justice”, the heart of the
Constitution of India, a reality. This Indian contribution to world ADR jurisprudence needs to be taken
full advantage of. Maximum number of LokAdalats need to be organized to achieve the Gandhian
Principle of Gram Swaraj and “access to justice for all”. During the last few years LokAdalat has been
found to be a successful tool of alternate dispute resolution in India. It is most popular and effective
because of its innovative nature and inexpensive style. The system received wide acceptance not only
from the litigants, but from the public and legal functionaries in general. Therefore, it may be concluded
that the system of LokAdalat and giving free legal aid to eligible persons is a very noble one which has
helped judiciary not only in speedy disposal of cases but has given some relief to the litigant, particularly
to them who are poor and cannot afford to claim their right through court of law.

5 Justice K.A. Abdul Gafoor, The Concept of Permanent Lok Adalat and the Legal Services Authorities Amendment Act,
2002Citeas:(2003)5SCC(Jour)33
6 AIR 2012 SC 3246
7 2Scott Shackleford, Manoj Kumar Sinha, In the name of efficiency: The Role of Permanent Lok Adalat in the Indian Justice

system and power Infrastructure, available at http://ssrn.com/abstract=1395957last visited on 9 th October 2018

8. 9Justice K.A. Abdul Gafoor, The Concept of Permanent Lok Adalat and the Legal Services Authorities
Amendment Act, 2002Citeas:(2003)5SCC(Jour)33,
Available at -
(http://www.ebcindia.com/practicallawyer/index2.php?option=com_content&itemid=1&do_pdf=1&id=700 10)

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Bibliography

PRIMARY SOURCES

THE LEGAL SERVICE AUTHORITIES, 1987

THE PERMANENT LOK ADALAT RULES, 2003

SECONDARY SOURCES

Justice K.A. Abdul Gafoor, The Concept of Permanent Lok Adalat and the Legal Services
Authorities Amendment Act, 2002Citeas:(2003)5SCC(Jour)33
AIR 2012 SC 3246

2Scott Shackleford, Manoj Kumar Sinha, In the name of efficiency: The Role of Permanent Lok
Adalat in the Indian Justice system and power Infrastructure, available at
http://ssrn.com/abstract=1395957

Permanent Lok for utility Services, available at

http://delhicourts.nic.in/PLAPUS%20Broucher%202008.pdf

Permanent Lok Adalat, Haryana State Legal Services Authority available at

http://hslsa.nic.in/Publications%20PDF/PLA.pdf.

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