IMPORTANT POINT
Once there is no compromise and/or a settlement between parties before Lok Adalat, matter has to be returned to Court from where matter was referred to Lok Adalat for deciding the matter on merits by concerned court.

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned order dated 30.11.2013 passed by the High Court of Madhya Pradesh, Bench at Indore in Writ Petition No. 8074 of 2011 by which in a Lok Adalat held on 30.11.2013, the members of the Lok Adalat has entered into the merits of the writ petition and has dismissed the said writ petition preferred by the appellant on merits, the original writ petitioner has preferred the present appeal.

2. That the appellant herein filed a writ petition before the High Court being Writ Petition No.8074 of 2011. The matter was listed on 30.11.2013 before the Lok Adalat. By the impugned order, the members of the Lok Adalat held by the High Court entered into the merits of the writ petition and dismissed the same on merits, which is the subject matter of the present appeal.

2.1 That thereafter the appellant filed the restoration application before the High Court to restore the main writ petition submitting that the order passed in the Lok Adalat is beyond the jurisdiction of the Lok Adalat and, therefore, the same is not legal in the eyes of law. However, the said application came to be dismissed by the High Court and hence the present appeal.

3. Shri Vikramjit Banerjee, learned ASG appearing on behalf of the appellant has vehemently submitted that the impugned order has been passed in the Lok Adalat and the Lok Adalat, Madhya Pradesh High Court has considered the case on merits and dismissed the same on merits, which is wholly impermissible in view of the relevant provisions of the Legal Services Authorities Act, 1987 (hereinafter referred to as “the Act, 1987”). Shri Banerjee, learned ASG has heavily relied upon Section 19(5), Section 20(3) and Section 20(5) of the Act, 1987 in support of his submission that a Lok Adalat shall have jurisdiction to determine and to arrive at a compromise or a settlement between the parties to a dispute and has no jurisdiction to enter into the merits of the case and decide the matter on merits, in case the settlement is not arrived at. It is submitted, therefore, that the impugned order passed by the Lok Adalat, Madhya Pradesh High Court is wholly without jurisdiction. Reliance is placed upon the decision of this Court in the case of State of Punjab and Ors. Vs. Ganpat Raj (2006) 8 SCC 364.

3.1 Learned counsel appearing on behalf of the respondent while opposing the present appeal has submitted that the matter was placed before the Lok Adalat with the consent of the learned counsel for the appellant. It is submitted that, therefore, once the matter was placed before the Lok Adalat with the consent, entire matter would be at large before the Lok Adalat and, therefore, having found no substance in the petition, the members of the Lok Adalat have rightly dismissed the writ petition, which in the facts and circumstances of the case is not required to be interfered with by this Court in exercise of power under Article 136 of the Constitution.

4. Heard the learned counsel for the respective parties at length.

5. The short question which is posed for consideration of this Court is whether in the Lok Adalat held by the High Court, was it open for the members of the Lok Adalat to enter into the merits of the writ petition and to dismiss the same on merits, in absence of any settlement arrived at between the parties?

6. While answering the aforesaid question, the relevant provisions of the Legal Services Authorities Act, 1987, which would have been a bearing on the jurisdiction of the Lok Adalat are required to be referred to, which read as under:-

“19. Organization of Lok Adalats-- (1) Every State Authority or District Authority or the Supreme Court Legal Services Committee or every High Court Legal Services Committee or, as the case may be, Taluk Legal Services Committee may organise Lok Adalats at such intervals and places and for exercising such jurisdiction and for such areas as it thinks fit.

(2) Every Lok Adalat organised for an area shall consist of su