RAJASTHAN HIGH COURT AT JAIPUR BENCH
M.N.Bhandari, J.
ICICI Prudential Life Insurance Co. Ltd. - Appellant
Versus
State of Rajasthan & Ors. - Respondent
S. B. Civil Writ Petition No. 1591 of 2011.
Decided On : 7-02-2011
PERMANENT LOK ADALAT - JURISDICTION - SECTION 22C, D AND E OF THE LEGAL SERVICES AUTHORITIES ACT, 1987 - SUMMARY
Fact of the Case:
Petitioner challenged the order of the Permanent Lok Adalat, which rejected its objection to the jurisdiction of the Lok Adalat in a dispute with the respondents over an insurance policy. The petitioner argued that the Lok Adalat lacked jurisdiction without the petitioner's consent, as per Section 22(c), (d), and (e) of the Legal Services Authorities Act, 1987.
Finding of the Court:
The court held that the Permanent Lok Adalat has the authority to conduct conciliation proceedings and decide disputes without the consent of the parties. The court noted that Section 22C of the Act requires the Lok Adalat to first attempt to amicably settle the matter and, if an agreement is reached, to pass an order accordingly. If no agreement is reached, the Lok Adalat is to decide the dispute.
Issues: 1. Whether the Permanent Lok Adalat has jurisdiction to proceed with the dispute without the consent of the petitioner. 2. Whether the petitioner is required to participate in the conciliation proceedings.
Ratio Decidendi: The court interpreted Section 22C, D, and E of the Legal Services Authorities Act, 1987, and held that the Permanent Lok Adalat has the authority to conduct conciliation proceedings and decide disputes without the consent of the parties. The court noted that the purpose of the Lok Adalat is to amicably settle disputes and that it is not bound by the Civil Procedure Code or the Indian Evidence Act. The court also held that the petitioner is required to participate in the conciliation proceedings in good faith and that its refusal to do so is an abuse of the process.
Final Decision: The court dismissed the petition, holding that the Permanent Lok Adalat has jurisdiction to proceed with the dispute without the consent of the petitioner and that the petitioner is required to participate in the conciliation proceedings.
"22C. Cognizance of cases by Permanent Lok Adalat - (1) Any party to a dispute may, before the dispute is brought before any Court, make an application to the Permanent Lok Adalat for the settlement of dispute :
Provided that the Permanent Lok Adalat shall not have jurisdiction in respect of any matter relating to an offence not compoundable under any law :Provided further that the Permanent Lok Adalat shall not have jurisdiction in the matter where the value of the property in dispute exceeds ten lakh rupees :Provided also that the Central Government, may, by notification, increase the limit of ten lakh rupees specified in the second proviso in consultation with the Central Authority.
(2) After an application is made under sub-section (1) to the Permanent Lok Adalat, no party to that application shall invoke jurisd
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