This writ petition raises an important question as to the authority of the Permanent Lok Adalath in deciding a dispute as contemplated under Section 22C(8) of the Legal Service Authorities Act, 1987 (for short, 'the Act').

2. The insurer challenges an Award of the Permanent Lok Adalath on the ground that it has no authority to adjudicate and decide a dispute which primarily revolved around the validity of a contract.

3. The insurer-New India Assurance Company Ltd. rejected the benefit under a medi claim insurance policy on the ground of suppression of material facts. The insured had taken the policy on 10.10.2005. The insured claimed reimbursement for renal treatment and liver disease. The insurer repudiated the claim pointing out pre-existing disease which was suppressed while taking the policy.

4. Based on the application before the Permanent Lok Adalath, conciliation proceedings were initiated as referrable under Section 22C(7) of the Act. The conciliation failed. Thereafter the Permanent Lok Adalath decided the dispute. The insurer objected to the authority of the Permanent Lok Adalath in deciding the dispute by pointing out that it cannot decide a dispute in regard to v