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2024 Supreme(Bom) 252

IN THE HIGH COURT OF JUDICATURE AT BOMBAY, AURANGABAD BENCH
SHAILESH P. BRAHME, J.
Chandpasha S/o Amirsab Ansari – Petitioner
Versus
Ejaz S/o Amirsab Ansari – Respondent
Writ Petition No. 7595 of 2020, Civil Application No. 11482 of 2023
Decided On : 29-01-2024

Advocates:
Advocate Appeared:
For the Petitioner: Anjali Dube (Bajpai).
For the Respondent: R.P. Adgaonkar.

IMPORTANT POINT
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.

Headnote:

Lok Adalat - Challenge to Award - Legal Services Authorities Act, 1987, Order 23 Rule 3(a) of the Civil Procedure Code - The court discussed the provisions of the Legal Services Authorities Act, 1987, and Order 23 Rule 3(a) of the Civil Procedure Code. It highlighted 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.

Fact of the Case:

The petitioner challenged an award passed by the National Lok Adalat, Ausa, on the grounds of fraud and misrepresentation, claiming a right of inheritance and necessity to be a party to the litigation.

Finding of the Court:

The court found that the award passed by the Lok Adalat is final and binding between the parties, and the petitioner's remedy is to either prefer an independent civil suit or approach the High Court to challenge the award on the ground of fraud.

Issues: The issues involved the finality of awards passed by Lok Adalat, the right of inheritance, and the permissibility of filing a separate suit or a writ petition to challenge the award.

Ratio Decidendi: The court held that the remedy for a third party to challenge an award passed by Lok Adalat on the ground of fraud is to either prefer an independent civil suit or to approach the High Court. It emphasized the finality and binding nature of Lok Adalat awards and the prohibition on filing suits to set aside a decree based on a compromise.

Final Decision: The writ petition was dismissed, and the petitioner was given the liberty to challenge the award by amending the existing suit or filing an independent suit.

Judgement Key Points

Key Points: - The Lok Adalat award is final and binding between parties; third parties can challenge only via independent suit or High Court for fraud (remedy outside the writ petition) (!) (!) (!) . - Bar to setting aside a compromise decree under Order 23 Rule 3A CPC; writ petition by a non-party to challenge Lok Adalat award is generally not maintainable, with exceptions for fraud or misrepresentation in extraordinary cases (!) (!) (!) (!) . - Petitioner not party to the Lok Adalat proceedings; allowed liberty to amend suit or file an independent suit to challenge the award on grounds including fraud, misrepresentation, or improper procedure (!) (!) (!) .

Question 1?

Question 2?

Question 3?


JUDGMENT :

SHAILESH P. BRAHME, J.

1. Rule. Rule is made returnable forthwith with the consent of the parties. Heard the learned Counsel for the litigating sides finally.

2. The petitioner is challenging an award dated 17.03.2019 passed by the National Lok Adalat, Ausa in RCS No. 174/2019. The petitioner is a step-brother of the respondent no. 1 and step son of the respondent no. 2. The respondent no. 2 is the wife of respondent no. 3. The respondent no. 1 had filed RCS No. 174/2019 for perpetual injunction against respondent no. 2 and 3. The petitioner was not party to the litigation. The respondent no. 3 was the owner of suit land which was gifted by him to respondent no. 1 by oral Heeba. The possession of the respondent no. 1 was stated to be obstructed which was cause to file suit.

3. There was settlement amongst respondent nos. 1 to 3. Respondent no. 2 secured power of attorney of the respondent no. 3. She entered into compromise on behalf of herself and the respondent no. 3 with the respondent no. 1 on 17.03.2019. The compromise was recorded and an award was passed on 17.03.2019 by the panel of National Lok Adalat, Ausa.

4. The petitioner’s case is that respondent no. 3 was not the exclusive owner of the suit land. He is son begotten from deceased wife of respondent no. 3. He had interest in the suit land. From the record of right, he noticed the award passed by the National Lok Adalat. The respondent no. 1 had no right to gift suit land to the respondent no. 1 and to part the possession. Feeling aggrieved by the decree drawn in pursuance of the award passed by the National Lok Adalat, the petition is preferred on the ground of fraud and misrepresentation.

5. Learned Counsel for the petitioner submits that the award passed by the National Lok Adalat on 17.03.2019 is vitiated by fraud and misrepresentation. The petitioner has a right of inheritance and he was necessary party. The respondents suppressed material facts and obtained impugned award on the same date. The impugned award is passed in very casual manner and mechanically which has resulted into miscarriage of justice. Learned Counsel Smt. Dube submits that the mandatory procedure contemplated by the Order 1, Rule 8(1)(b) and Order 23, Rule 3(b)(2) have not been followed. Without seeking permission of the Court, the respondent no. 2 acted on behalf of respondent no. 3 by tendering power of attorney. The impugned award is void. It is further submitted that the petitioner has no alternate remedy of filing suit challenging the judgment and award passed by the Lok Adalat. Neither can she challenge the award passed by the National Lok Adalat by preferring any appeal in view of Section 21(1) of the Legal Services Authorities Act, 1987.

6. Learned Counsel for the petitioner seeks to rely upon the judgment rendered by the Division Bench of Hyderabad High Court in the matter of P. Naresh Kumar vs. Secretary Legal Services Authority and Others in Writ Petition No. 1932/2020; judgment passed in the matter of Dinkar Indrabhan Kadaskar and Others vs. Grampanchayat Bhagwatipur and Others, 2009 (1) Bom. C.R. 39.

7. Per contra, learned Counsel for the respondents supports impugned award passed by the Lok Adalat. He has raised objection for the maintainability of the petition by relying upon the judgment passed by the Division Bench of Andhra Pradesh High Court in the matter of Batchu Subba Lakshmi and Others vs. Sannidhi Srinivasulu and Others. He would submit that the writ petition is not maintainable because the petitioner is a third person and he was not party to the litigation. The petitioner has remedy of preferring independent suit challenging award passed by the National Lok Adalat on the ground of fraud, misrepresentation or violation of statutory procedures.

8. Learned Counsel for the respondent has invited my attention to the plaint in RCS No. 101/2022 instituted by the petitioner against the respondents and others for partition, possession and declaration. The compromise deed fil

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