IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
B.S.Bhanumathi, J.
Gudela Anuradha - Appellant
Versus
R.V.Satyanarayana Murthy - Respondent
Civil Revision Petition No. 2834 of 2022
Decided On : 26-09-2023
Order VII Rule 11 CPC - Challenge to Lok Adalat Award - Article 227 of the Constitution of India - Sec. 34 of the Specific Relief Act, 1963 - Lok Adalat award can be challenged by filing a writ petition under Article 226/227 of the Constitution of India on limited grounds - Civil suit not maintainable to challenge Lok Adalat award on ground of fraud - Plaint can be rejected under Order VII Rule 11 CPC
Fact of the Case:
The plaintiff filed a suit to declare a Lok Adalat award as not valid and binding on the ground of fraud. The defendant filed a petition to reject the plaint under Order VII Rule 11 CPC, stating that a civil suit is not maintainable to challenge the award passed by the Lok Adalat.
Finding of the Court:
The court analyzed the legal provisions and held that a Lok Adalat award can be challenged by filing a writ petition under Article 226/227 of the Constitution of India on limited grounds. The court concluded that a civil suit is not maintainable to challenge a Lok Adalat award on the ground of fraud, and therefore, the plaint was rejected under Order VII Rule 11 CPC.
Issues: Whether a party to the Lok Adalat award can maintain a civil suit to challenge it on the ground of fraud? Whether a plaint can be rejected under Order VII Rule 11 CPC?
Ratio Decidendi: The court relied on the legal provisions under Article 227 of the Constitution of India, Sec. 34 of the Specific Relief Act, 1963, and the interpretation of the Supreme Court's decision in Bhargavi Constructions case to establish that a civil suit is not maintainable to challenge a Lok Adalat award on the ground of fraud.
Final Decision: The Civil Revision Petition was allowed, setting aside the order to reject the plaint, and the plaintiff was given liberty to avail any other remedy available under law.
JUDGMENT
1. This revision, under Article 227 of the Constitution of India, is filed challenging the order, dtd. 31/10/2022, dismissing petition in I.A.No.195 of 2019 in O.S.No.237 of 2018 on the file of the Court of XII Additional District Judge, Vijayawada, filed by the defendant under Order 7 Rule 11 CPC to reject the plaint.
2. Heard Ms. Ganta Sridevi, learned counsel representing Sri Ch.Bhanu Prasad, learned counsel for the revision petitioner/defendant and Sri Sai Gangadhar Chamarthy, learned counsel for the respondent/ plaintiff.
3. The facts leading to filing of this revision petition, briefly stated, are as follows: The parties to the suit in O.S.No.237 of 2018 were referred to the Lok Adalat for settlement, and thereby, an award was passed on 3/7/2015 in Case No.782 of 2015. The respondent/plaintiff filed the above suit O.S.No.237 of 2018 to declare that the award, dtd. 3/7/2015, passed by the Lok Adalat, Vijayawada, in case No.782 of 2015 is not valid and binding on the plaintiff on the ground of fraud.
4. At the time of filing the suit, on the objection raised by the office, the plaintiff submitted a decision of the High Court of A.P. in Rambha Narayana Murthy Vs Nimmagadda Eswara Venkata Narasimha Rao,2017(2) ALT 443 (S.B.). On being satisfied about the legal proposition, the suit was registered.
5. The defendant filed I.A.No.195 of 2019 under Order VII Rule 11 CPC to reject the plaint stating that civil suit is not maintainable to challenge the award passed by the Lok Adalat. The petition was resisted by the respondent/plaintiff by filing counter and denying the averments. After hearing both parties, the petition was dismissed observing that on a bare reading of Order VII Rule 11 CPC, the ground raised by the petitioner to reject the plaint, questioning the Lok Adalat Award is not shown or covered and that the remedy of the petitioner is elsewhere.
6. Having aggrieved by the order, this revision petition is filed.
7. The learned counsel for the revision petitioner/defendant submitted that as per Order VII Rule 11 (d) CPC, if a suit is not in accordance with 'law', the plaint is to be rejected and that the word 'law' includes a decision passed by the constitutional courts, and therefore, the observation of the trial Court that Order VII Rule 11 CPC does not apply is erroneous. In this regard, she further submitted that as per the decision of the Supreme Court in Bhargavi Constructions and another Vs Kothakapu Muthyam Reddy and others,(2018) 13 SCC 480. when an award passed by the Lok Adalat is to be challenged on the ground of fraud, the only remedy available is to file a writ petition under Article 226/227 of the Constitution of India and not by a separate suit, and therefore, within the meaning of 'law' under Order VII Rule 11(d) CPC, the suit in the present case is not maintainable.
8. Per contra, the learned counsel for the respondent/plaintiff submitted that when an award is challenged on the ground of fraud which requires a detailed trial and involve voluminous evidence, a civil suit would lie and in support of his contentions, he placed reliance on decisions of the Division Benches of this Court in Atluru Chandra Sekhara Rao v. Atluru Mahesh Babu and others, 2019 (3) ALT 119 # AIR 2019 AP 7. and Iragadindla Ramachandrudu v. The Lok Adalath Bench,W.P.Nos.14433 of 2020 &.13268 of 2020, dtd. 12/9/2023 (APHC). wherein by relying on the observation of the earlier decision of this High Court in Batchu Subba Lakshmi & others v. Sannidhi Srinivasulu & others, 2010 (1) ALD 277 (D.B). it was held that a third party to the Lok Adalat award can file a civil suit on the ground of award being vitiated by fraud. It was held at paragraph Nos.12, 13 & 17 as follows:
"12) Be that as it may, upon establishing the fact that he is the grandson of Iragadindla Chinna Chinnanna, when he only claims 1/3rd share in the said property as a heir of one of the land holders, he also, if he feels aggrieved by the award on the ground of any
Atluru Chandra Sekhara Rao v. Atluru Mahesh Babu and others
Batchu Subba Lakshmi & others v. Sannidhi Srinivasulu & others
Bhargavi Constructions and another Vs Kothakapu Muthyam Reddy and others
Kothakapu Muthyam Reddy and others v. Bhargavi Constructions and others
Rambha Narayana Murthy Vs Nimmagadda Eswara Venkata Narasimha Rao
Sanjay Kumar V. Secretary, City Civil Court Legal Services Authority
Sri Durga Malleswari Education Society, Vijayawada v. District legal Services Authority, Vijayawada
A Lok Adalat award can be challenged by filing a writ petition under Article 226/227 of the Constitution of India on limited grounds, and a civil suit is not maintainable to challenge a Lok Adalat aw....
A Lok Adalat award is binding when signed by parties, challenges must follow strict procedural paths under Articles 226/227, and the Execution Court's failure to address preliminary objections is an ....
The award of Lok Adalat is final and binding, challengeable only through writ petitions under Articles 226 and 227, not in Civil Court.
Objection to execution of decree – Statutory finality attached to Lok Adalat award leaves no room for appellate or plenary civil remedy against the award treated as a decree – Award may be executed a....
The finality and binding nature of awards passed by Lok Adalat, and the prohibition on filing suits to set aside a decree based on a compromise.
An award from a Lok Adalat can be challenged in a writ petition if obtained through fraud or misrepresentation, as such awards are akin to compromise decrees.
Point of Law : Challenge to the award of Lok Adalat can be done only by filing a writ petition under Article 226 and/or Article 227 of the Constitution of India in the High Court and that too on very....
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