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2008 Supreme(Gau) 675

IN THE HIGH COURT OF GAUHATI (AIZAWL BENCH)
H. Baruah, J.
Pu Lalkanglova Sailo – Appellants
Vs.
Pi Ngurthantluangi Sailo – Respondent
Decided On: 10.09.2008

The main legal point established in the judgment is the authority of the Permanent Lok Adalat to decide disputes in pre-litigation conciliation and settlement under the provisions of the Legal Services Authorities Act, 1987.

Headnote:

Lok Adalat - Pre Litigation Conciliation - Legal Services Authorities Act, 1987, Sections 22C, 22D, 22E - The court discussed the jurisdiction, power, and function of Lok Adalats under Chapter VI of the Legal Services Authorities Act, 1987, and the provisions related to pre-litigation conciliation and settlement under Chapter VIA. It highlighted the authority of Permanent Lok Adalat to decide disputes when parties fail to reach an agreement, as provided in Sub-section (8) of Section 22C.

Fact of the Case:

The Permanent Lok Adalat decided a dispute between the parties after conciliation failed to reach an amicable settlement. The petitioner challenged the order, arguing that the Lok Adalat acted illegally by deciding the dispute without a settlement.

Finding of the Court:

The court found that the Permanent Lok Adalat had the jurisdiction to decide the dispute under the provisions of Sub-section (8) of Section 22C of the Legal Services Authorities Act, 1987. It concluded that there were no grounds to interfere with the impugned order and dismissed the petition.

Issues: Jurisdiction of Permanent Lok Adalat to decide disputes in pre-litigation conciliation and settlement, legality of the Permanent Lok Adalat's decision without a settlement.

Ratio Decidendi: The court relied on the provisions of the Legal Services Authorities Act, 1987, specifically Sections 22C, 22D, and 22E, to determine the jurisdiction and authority of the Permanent Lok Adalat to decide disputes when parties fail to reach an agreement.

Final Decision: The court dismissed the petition, finding no plausible ground to interfere with the impugned order of the Permanent Lok Adalat.

ORDER

H. Baruah, J.

1. Heard Mr. P.C. Prusty, learned Counsel for the petitioner and Mrs. Helen Dawngliani, learned Counsel for the sole respondent.

2. Order dated 30.7.2007 passed by Permanent Lok Adalat, Aizawl, Mizoram is the subject matter of challenge under this revision. Before bringing the dispute to a Court of Law, the permanent Lok Adalat put the dispute in conciliation, after receipt of the version of the petitioner on three occasions. The dispute could not be resolved/settled between the respondent and the petitioner herein and the Permanent Lok Adalat, therefore, by resorting to the provisions of Chapter VIA of Legal Services Authorities Act, 1987 decided the dispute between the parties as reflected in the impugned order.

3. Being aggrieved thereby the petitioner approached this Court to set aside and quashed the order passed by the Permanent Lok Adalat.

4. Mr. P.C. Prusty, learned Counsel for the petitioner at the very out set of his argument criticizes the order that it is illegal on the part of the Permanent Lok Adalat to pass such an order without any amicable settlement of the dispute between the parties, which according to him is contrary to law. Mr. Prusty in support of his contention relied in the decision of the case between State of Punjab and other vs. Phulan Rani reported in AIR 2004 SC 4105 and State of Punjab and another vs. Jalour Singh and other reported in (2008) 296 ITR 257 (SC).

5. In the case between the State of Punjab and other vs. Phulan Rani reported in AIR 2004 SC 4105 the Supreme Court held that a Lok Adalat cannot dispose of a dispute between the parties unless the dispute is compromised or settled. Since the dispute between the respondent and the petitioner could not be settled, according to Mr. Prusty, the permanent Lok Adalat overrides its jurisdiction in settling the matter by its own vide impugned order.

6. In the case between the State of Punjab and another vs. Jalour Singh and other reported in (2008) 296 ITR 257 (SC), the Hon'ble Supreme Court in para of the judgment held as under:

8. It is evident from the said provisions that the Lok Adalat have no adjudicatory or judicial functions. Their functions relate purely to conciliation. A Lok Adalat determines a reference on the basis of a comprise or settlement between the parties at its instance, and puts its seal of confirmation by making an award in terms of the compromise or settlement. When the Lok Adalat is not able to arrive at a settlement or compromise, no award is made and the case record is returned to the Court from which the reference was received, for disposal, in accordance with law. No Lok Adalat has the power to "hear" parties to adjudicate cases as a Court does. It discusses the subject-matter with the parties and persuades them to arrive at a just settlement. In their conciliatory role, the Lok Adalat are guided by the principles of justice, equity and fair play. When the LSA Act refers to "determination" by the Lok Adalat and "award" by the Lok Adalat, the said Act does not contemplate nor require an adjudicatory determination based on a compromise or settlement, arrived at by the parties, with guidance and assistance from the Lok Adalat. The "award" of the Lok Adalat does not mean any independent verdict or option arrived at by the decision-making process. The making of the award is merely an administrative act of incorporating the terms of settlement of compromise agreed by parties in the presence of the Lok Adalat, in the form of an executable order under the signature and seal of the Lok Adalat.

7. Chapter VI of the Legal Services Authorities Act, 1987 deals with the subject of Lok Adalats. In this chapter jurisdiction, power and function of Lok Adalats have been provided. Sections 19, 20, 21 and 22 deal with the subject of organization of Lok Adalats; Cognizance of cases by Lok Adalats. Award of Lok Adalat, and Powers of Lok Adalats. This chapter is applicable to post litigation conciliation and settlement while Chapte





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