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2019 Supreme(Kar) 696

IN THE HIGH COURT OF KARNATAKA
JOHN MICHAEL CUNHA, J.
Raghavendra Rao - Appellant
Versus
K. Srikantha Rao - Respondent
Criminal Petition No. 1028, 1029, 1030, 1031, 1032 of 2015
Decided On : 01-07-2019

Advocates:
Advocate Appeared:
B.V. Pinto, Adv., Pradyamna M, Adv.

The main legal point established in the judgment is that Lok Adalaths have no adjudicatory or judicial functions, and their functions relate purely to conciliation. The court emphasized that only the award passed by the Lok Adalath is enforceable under law and not the order passed by the Lok Adalath.

Headnote:

Lok Adalath - Legal Provisions and Court's Decision - N.I. Act Section 138 - Regulations 2009 - The court found that the Lok Adalath proceedings were conducted in violation of the Legal Services Authorities Act of 1987 and the National Legal Services Authority (Lok Adalats) Regulations, 2009. The court held that the order passed by the Lok Adalath and the consequent proceedings conducted by the learned Magistrate were liable to be set aside. The complaints were directed to be restored to file, and the trial court was directed to dispose of the cases expeditiously within an outer limit of three months from the date of communication of the order.

Fact of the Case:

The respondent presented five private complaints against the petitioner alleging dishonour of various cheques. The parties were referred to Lok Adalath for resolution of the dispute, and the Lok Adalath passed orders convicting the petitioner for the offence under Section 138 of the N.I. Act.

Finding of the Court:

The court found that the Lok Adalath proceedings were conducted in violation of the Legal Services Authorities Act of 1987 and the National Legal Services Authority (Lok Adalats) Regulations, 2009. The order passed by the Lok Adalath and the consequent proceedings conducted by the learned Magistrate were liable to be set aside.

Issues: The issues included the validity of the Lok Adalath proceedings, the enforceability of the order passed by the Lok Adalath, and the conduct of the learned Magistrate in the proceedings.

Ratio Decidendi: The court held that the Lok Adalath proceedings were conducted in violation of the Legal Services Authorities Act of 1987 and the National Legal Services Authority (Lok Adalats) Regulations, 2009. The order passed by the Lok Adalath and the consequent proceedings conducted by the learned Magistrate were liable to be set aside.

Final Decision: The complaints were directed to be restored to file, and the trial court was directed to dispose of the cases expeditiously within an outer limit of three months from the date of communication of the order.

JUDGMENT :

JOHN MICHAEL CUNHA, J.

1. Heard learned counsel for the petitioner and learned counsel for the respondent.

2. Perused the records.

3. The respondent herein presented five private complaints against the petitioner alleging dishonour of various cheques issued by the petitioner as detailed in the chart here below :

Sl. No.

Case No Before High Court

Case No Before the Trial Court

Cheque No.

Cheque Date

Cheque Amount

Crl.RPNo.

Crl.ANo.

Amount Deposited Before Trial Court

Amount Deposited Before High Court

Conviction Amount

1

Crl.P.No. 1028/2015

C.C.9418/
2011

a)66684
b)66685
c)66688
d)66689
e)66690

a)66684
b)66685
c)66688
d)66689
e)66690

Rs.2 lakh
Rs.2 lakh
Rs.2 lakh
Rs.2 lakh
Rs.2 lakh

56/2015

710/2014

Rs.1,00,000

On 30.04.15
Rs.10 lakh In all five Cases

10 lakh

2

Crl.P.No.1029/2015

C.C.9416/2011

66692

25.10.10

Rs.10 Lakh

58/2015

708/2014

Rs.1,00,000

 

10 lakh

3

Crl.P.No.1030/2015

C.C.9414/2011

66686

25.10.10

Rs.2 lakh

57/ 2015

706/2014

Rs.20,000

On 08.06.15 Rs.5 Lakh In all five Cases

2 lakh

4

Crl.P.No.1031/2015

C.C.9415/2011

66691

25.10.10

Rs.1 lakh

59/2015

707/2014

Rs.10,000

Total Deposit made in High Court Rs.15 lakh

1 lakh

5

Crl.P.No1032/2015

C.C.9417/2011

66687

25.10.10

Rs.2 lakh

60/2015

709/2014

Rs.20,000

 

2 lakh

(1)Total deposit made in High Court from 30.4.15 and on 8.6.15 Rs.15 lakh only

(2) Total amount deposited before the trial court on 23.7.14 in all five cases Rs.2,50,000/-

(3) Amount paid to the complainant on 20.5.14 Rs.2,00,000/- (Rupees Two lakh only)

3. During the pendency of these proceedings, parties were referred to Lok Adalath for resolution of the dispute. Both the parties submitted joint memo before the Lok Adalath duly signed by their Advocates. Based on the said memos, Lok Adalath passed orders convicting the petitioner for the offence under Section 138 of the N.I.Act and sentenced to pay Rs.10.00 lakh (C.C.No.9418/2011), Rs.10.00 lakh (C.C.No.9416/2011), Rs.2.00 lakh (C.C.No.9414/2011), Rs.1.00 lakh (C.C.No.9415/2011) and Rs.2.00 lakh (C.C.No.9417/2011) to the complainant on or before 20.05.2014 in the respective complaints, failing which, to undergo simple imprisonment for three months in each case.

4. Referring to the Order Sheet maintained by the trial court, learned counsel for the petitioner pointed out that the proceedings before the Lok Adalath disclose that the Lok Adalath did not consist of requisite quorum. The order sheets indicates that only judicial member has subscribed his signature making it evident that the conciliator did not participate in the Lok Adalath. As such, the orders passed by the Lok Adalath are non est in the eye of law and the same are unenforceable. Learned counsel further submitted that though the petitioner/accused has paid substantial amount as per the above orders, yet, some of the cheques produced by the complainant were not drawn in the name of the respondent/complainant, as such, the complaints filed before the Court were not maintainable and under the said circumstance, the orders passed by the Lok Adalath are liable to be quashed.

5. Per contra, learned counsel appearing for the respondent/complainant would submit that the petitioner was assisted by advocate. Joint memos were signed not only by the petitioner but also his Advocate. Therefore, the argument of the learned counsel for the petitioner that he was mislead to sign the joint memos cannot be accepted. Further, the award passed by the Lok Adalath is duly acted upon. In terms of the said award, substantial amount has been paid by the petitioner. Therefore, at this length of time, he cannot be heard to say that the award passed by the Lok Adalath suffers from error warranting interference by this Court.

6. Con

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