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2015 Supreme(Kar) 821

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
N. KUMAR, J.
Sri Govardhana & Anr. - Petitioners
Vs.
Appi & Ors. - Respondents
W.P. No. 23235/2012 (GM-CPC)
Decided on : 28-04-2015

Advocates:
Advocate Appeared:
Sri K.A. Ariga
S.B. Totad, R6, Sri Sandesh T.B., R2, R4 & R5

The Lok Adalath has no adjudicatory function and can only resolve disputes when the parties agree to compromise or settle. The absence of the parties' signatures invalidates the compromise, and the Lok Adalath cannot accept a compromise in the absence of the parties.

Headnote:

Lok Adalath - Jurisdiction to Determine and Arrive at a Compromise or Settlement - Legal Services Authorities Act, 1987, Section 19(5), Section 20 - The Lok Adalath has no adjudicatory function and can only resolve disputes when the parties agree to compromise or settle. The compromise or settlement should be between the parties, and the absence of their signatures invalidates the compromise. The Lok Adalath cannot accept a compromise in the absence of the parties, and if the parties do not accept the compromise, the case should be referred back to the Court for further proceedings.

Fact of the Case:

Plaintiffs filed a suit for partition and separate possession of properties. The suit was referred to Lok Adalath, and a compromise petition was filed. The plaintiffs sought to set aside the award/decree passed by the Lok Adalath on the ground that they did not affix their signatures to the compromise.

Finding of the Court:

The Court found that the absence of the plaintiffs' signatures on the compromise petition invalidated the compromise. The Lok Adalath cannot accept a compromise in the absence of the parties, and the case should be referred back to the Court for further proceedings.

Issues: Whether a dispute can be resolved by an award/decree before the Lok Adalath in the absence of the parties or without the parties affixing their signatures to the compromise?

Ratio Decidendi: The Lok Adalath has no adjudicatory function and can only resolve disputes when the parties agree to compromise or settle. The compromise or settlement should be between the parties, and the absence of their signatures invalidates the compromise.

Final Decision: Writ petition is allowed. Impugned order passed by the Lok Adalath is hereby set aside. The original suit is restored to its file. The Trial Court shall proceed with the suit, from the stage where it was at the time of reference to Lok Adalath, after giving opportunity to both parties.

ORDER :

Plaintiffs have preferred this writ petition seeking for setting aside the award/decree dated 07.04.2007 passed in O.S.No.54/2004 by the Lok Adalath and District Legal Service Authority, Udupi District, Udupi, which is produced in this case as Annexure-A.

2. Plaintiffs-Govardhana and Srinivasa filed O.S.No.54/2004 for partition and separate possession of plaint ‘A’ schedule properties in fair and equal manner and for cancellation of partition deed executed on 15.03.2004 in respect of plaint ‘A’ schedule properties. After service of summons, defendants entered appearance and contested the matter. They sought for dismissal of the suit. Issues were framed. Case was posted for trial. At that stage, on a request made by the parties, the suit was referred to Lok Adalath. In the Lok Adalath, a compromise petition was filed on 07.04.2007. Thereafter, the first plaintiff filed miscellaneous application before the Principal Senior Civil Judge and CJM, Udupi for setting aside the said decree. The said application came to be dismissed on the ground that it is not maintainable, reserving liberty to the plaintiffs to challenge the award passed by the Lok Adalath before the appropriate forum. It is after the said order passed on 18.01.2012, the present writ petition is filed challenging the award passed by the Lok Adalath.

3. Learned counsel for the petitioners/plaintiffs assailing the impugned award contends that the plaintiffs have not affixed their signatures to the compromise; award/decree is passed on the basis of a compromise signed by their counsel. The same is patently illegal and therefore, requires to be set aside. It is on the basis of the signature of their advocate, compromise is recorded and an award/decree is passed which is patently illegal and therefore, he submits the impugned award requires to be set aside.

4. Per contra, the learned counsel for the defendants/respondents submits that the parties have entered into a memorandum of family arrangement and subsequently, a partition deed is also executed. When the parties arrived at a settlement, the advocate, on the plaintiffs’ instructions has affixed his signature to the compromise petition. Therefore, the said compromise fully binds the plaintiffs and the award cannot be set side on the ground that the plaintiffs are not parties to the compromise or that they have not affixed the signatures to the compromise petition.

5. In the light of the above, the following point arises for consideration in this writ petition:

Whether a dispute can be resolved by an award/decree before the Lok Adalath in the absence of the parties or without the parties affixing their signatures to the compromise?

6. Sub-Section (5) of Section 19 of the Legal Services Authorities Act, 1987 (for short hereinafter referred to as ‘the Act’) reads as under:

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

(i) any case pending before; or

(ii) any matter which is falling within the jurisdiction of and is not brought before, any Court for which the Lok Adalat is organized:

Provided that the Lok Adalat shall have no jurisdiction in respect of any case or matter relating to an offence not compoundable under any law. Sub-Section (1) of Section 20 provides for Cognizance of cases by Lok Adalats. It reads as under:

“(1) Where in any case referred to in clause (1) of subsection (5) of Section 19-

(i) (a) the parties thereof agree; or

(b) one of the parties thereof makes an application to the Court, for referring the case to the Lok Adalat for settlement and if such Court is prima facie satisfied that there are chances of such settlement; or

(ii) the Court is satisfied that the matter is an appropriate one to be taken cognizance of by the Lok Adalath, the Court shall refer the case to the Lok Adalat:

Provided that no case shall be referred to the Lok Adalat under sub-clause (b) of clause (i) or clause (ii) by such Court except after g












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