JUDGMENT

1. The permanent Lok Adalat vide order dated 10.05.2003 allowed the claim of the Respondent and accordingly, directed the Appellant-Corporation to pay sum of `1 lakh under the Endowment Assurance Policy dated 24.03.1998 obtained by one Lal Chand Mali. The Respondent is the nominee under the Policy. It is evident from the records that the Lok Adalat, after the receipt of the records and after holding discussions with the parties, found that there was no scope for any compromise, whatsoever, between the parties. The same is clearly evident from the order dated 29.04.2003. The permanent Lok Adalat having passed such an order further directed the matter to be listed on 10.05.2003 'for discussion for compromise'. On 10.05.2003, when the matter was taken up, the Lok Adalat again noted that inspite of the best efforts made by the members of the Lok Adalat, there was no possibility of parties arriving at any compromise. Having stated so, the permanent Lok Adalat, instead of relegating the parties to get their dispute adjudicated, proceeded to take up the matter on merits and accordingly, allowed the claim put forth by the Respondent.

2. In our considered opinion, the impugned order