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2025 Supreme(Gau) 789

IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH 
Kaushik Goswami, J.
Sri Mridul Rajkhowa, S/o- Late Jughdhor Rajkhowa and ors. – Petitioners
Versus
The District Legal Services Authority, Nagaon district and ors. – Respondents
WP(C) No.7204 of 2017
Decided On : 05-06-2025

Advocates:
Advocate Appeared:
For the Petitioner:Mr. S. Khound, Advocate.
For the Respondent:Mr. K. M. Mahanta, Advocate

The award of a Lok Adalat is final and binding unless challenged on clearly established grounds such as fraud or misrepresentation, as per the Legal Services Authorities Act.

Headnote:(A) Legal Services Authorities Act, 1987 - Sections 20 and 21 - Writ petition under Article 226 - Challenge to the award of National Lok Adalat based on coercion - Legal backing for Lok Adalat awards; finality and binding effect of such awards - Must show valid grounds for challenging awards under limited scope allowed by court. (Paras 8, 10, 21, 35)

(B) Writ jurisdiction - It can be invoked only on established grounds of fraud, misrepresentation or the absence of valid compromise. (Paras 26, 34)

Facts of the case:
Petitioners challenge the award passed by the National Lok Adalat regarding a dishonored cheque case, contending coercion led to signing the compromise. Respondents argue the settlement was voluntary and binding due to previous compliance with payment terms.

Findings of Court:
The award retains validity given the established process followed and the prior payments made. The court dismisses the writ petition on the basis that no sufficient grounds were established.

Issues: Can the award of the National Lok Adalat be challenged under Article 226? Was the challenge based on coercion valid?

Ratio Decidendi: The Lok Adalat’s award is final and can only be reviewed under limited circumstances, including fraud—none were substantiated in this case.

Result: Writ petition dismissed.

Table of Content
1. challenge to national lok adalat award (Para 4 , 5 , 6)
2. arguments about coercion and procedure under the lsa act. (Para 7 , 18)
3. finality of lok adalat awards (Para 8 , 10 , 15)
4. legal services authorities act provisions (Para 11 , 13 , 14)
5. legal importance and binding nature of lok adalat awards. (Para 16)
6. validity of compromise agreement (Para 19 , 20)
7. abuse of writ jurisdiction (Para 34 , 36)
8. finality of the lok adalat award despite allegations of coercion. (Para 35)
9. dismissal of writ petition (Para 38 , 39)

JUDGMENT :

Kaushik Goswami, J.

Heard Mr. S. Khound, learned counsel appearing for the petitioners. Also heard Mr. K. M. Mahanta, learned counsel appearing for the respondent Nos. 3 & 4.

2. Pertinent that though notices have been duly served upon respondent Nos. 1 & 2 as is apparent from the Office Note dated 30.12.2019, there has been no representation on behalf of the aforesaid two respondents.

3. The pleadings having been completed, the writ petition is taken up for final disposal at the stage of Admission with the consent of the learned counsels appearing for the parties.

4. By way of this writ petition under Article 226 of the Constitution of India, the petitioners are assailing the award dated 13.02.2016, passed by the National Lok Adalat, conducted by the District Legal Services Authority, Nagaon, in C.R. Case No.1161/2015, which was pending in the Court of Munsiff-cum-Judicial Magistrate First Class, Hojai, Nagaon (hereinafter referred to as the Judicial Magistrate Court).

5. The brief facts of the case are that in the year 2004, the petitioner No.1/accused person had borrowed money from the respondent No.4, and in connection with the aforesaid loan, the petitioners/accused persons had issued certain cheques, which, upon being dishonoured, a complaint case was filed, being C.R. Case No.1161/2015, by the respondent No.3/complainant against the petitioners/accused persons under Section 138 of the Negotiable Instruments Act, 1881, read with Section 142 of the said Act (as amended up-to-date), before the Judicial Magistrate Court. In the said complaint case, on 13.02.2016, when the case record was put up before the National Lok Adalat, of which prior notices were sent to both the parties, including the petitioners as well as the respondent No.3/complainant, and upon parties appearing before the National Lok Adalat on the scheduled date, and in terms of the amicable settlement arrived at between the parties, the National Lok Adalat, by award dated 13.02.2016 disposed of the case in terms of such settlement arrived at between the parties.

6. It is the specific case of the petitioners/accused persons that though the petitioners/accused persons were reluctant to appear before the National Lok Adalat on 13.02.2016, however, due to the threat given by the respondent No.4, the petitioners/accused persons had to appear before the National Lok Adalat and, upon being misrepresented, signed the compromise deed. Situated thus, the present writ petition has been filed.

7. Mr. S. Khound, learned counsel appearing for the petitioners/accused persons, submits that the petitioners/accused persons have been coerced to sign the settlement compromise deed before the National Lok Adalat, and therefore, the order of the National Lok Adalat impugned in this writ proceeding is illegal and void ab initio. He further submits that the procedure contained in Section 20 of the Legal Services Authorities Act, 1987 (hereinafter referred to as the “LSA Act”) has not been followed, for which the impugned order of the National Lok Adalat warrants interference from this Court under Article 226 of the Constitution of India.

8. Per contra, Mr. K. M. Mahanta, learned counsel appearing for the respondent Nos. 3 & 4, submits that the writ petition is not maintainable inasmuch as the impugned award of the National Lok Adalat has been passed on the basis of the amicable settlement arrived at between both the parties. He further submits

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