The finality and binding nature of the award made by the Permanent Lok Adalat under Section 22E of the Legal Services Authority Act, 1987.

The petitioner-Insurance Company has filed this writ petition challenging the award dated 22.8.2008 rendered by Permanent Lok Adalat in M.V. Case No.56 of 2005. The award has been rendered on the consent of the parties. An amount of Rs. 40,000/-by way of compensation has been awarded under Section 166 of the Motor Vehicle Act in addition to the amount awarded / paid under Section 140 of the Motor Vehicle Act.

2. The grievance of the petitioner is that in the said award, Insurance Company has not been given right to recover the same from the owner of the vehicle.

3. Learned counsel appearing on behalf of the petitioner, at the outset, submitted that award made in favour of the claimants has not been challenged by the petitioner. But the petitioner is dissatisfied with the award, because it has not been given right to recover the amount from the owner of the vehicle.

4. I have heard learned counsel for the petitioner and perused the record.

5. The permanent Lok Adalat has awarded compensation amount of Rs. 40,000/-under Section 166 of the M.V. Act to the claimants who are mother and father of the deceased girl Chanchala Kumari aged about five years. It appears that petty amount was awarded only because the Insurance Company agreed to settle the claim, however, after the said award was passed by the Permanent Lok Adalat, the petitioner – Insurance Company hastened to file this writ petition challenging the said order.

6. Permanent Lok Adalat made the said award in exercise of its power under Section 22 of the Legal Services Authority Act, 1987.

7. Section 22E of the said Act clearly provides that award of Permanent Lok Adalat shall be final and binding on all the parties thereto.

Section-22E reads as follows :-

“22E. Award of Permanent Lok Adalat to be final. --(1) Every award of the Permanent Lok Adalat under this Act made either on merit or in terms of a settlement agreement shall be final and binding on all the parties thereto and on persons claiming under them.

(2) Every award of the Permanent Lok Adalat under this Act shall be deemed to be a decree of a civil court.

(3) the award made by the Permanent Lok Adalat under this Act shall be by a majority of the persons constituting the Permanent Lok Adalat.

(4) Every award made by the Permanent Lok Adalat under this Act shall be final and shall not be called in question in any original suit, application or execution proceeding.

(5) The Permanent Lok Adalat may transmit any award made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that court.]”

8. On plain reading of the said provision, it is clear that every award of Permanent Lok Adalat under this Act made either on merit or in terms of a settlement agreement shall be final and binding on all the parties thereto and on persons claiming under them.

9. Sub-section (4) of Section 22E of the said Act further provides that such award shall not be called in question in any original suit/ application or execution proceeding. In spite of the said clear provision of law, the petitioner has preferred this application challenging the award of Permanent Lok Adalat.

10. Apparently, this application is not maintainable and is liable to be dismissed.

11. This Court takes this matter with concern as the National Insurance Company Ltd., which is a Government company, has filed frivolous writ petition apparently only in order to deprive the victim claimants of the fruit of the award for such a long period without any legal justification.

12. In view of the above, this writ petition is dismissed with a direction to the petitioner to comply with the award within six weeks from today with compensatory interest @ 10% per annum, in addition to the interest awarded by the Permanent Lok Adalat. The petitioner shall also pay to the victims cost of Rs. 20,000/-within the said period.