IN THE HIGH COURT OF JHARKHAND AT RANCHI
SANJAY KUMAR DWIVEDI, J.
Aditya Narayan Thakur S/o Rameshwar Thakur - Appellant
Versus
Parasnath Thakur S/o Late Shambhunath Thakur - Respondent
C.M.P. No. 16 of 2023
Decided On : 05-02-2025
(A) Legal Services Authorities Act, 1987 - Section 22-A - Jurisdiction of Permanent Lok Adalat - The award passed by the Permanent Lok Adalat was challenged on grounds of fraud and jurisdiction, as the dispute did not involve a public utility service as defined under the Act. The petitioners contended that the award was null and void due to fraudulent execution and misrepresentation by the opposite parties regarding ancestral properties. (Paras 2-20)
(B) Jurisdiction - Permanent Lok Adalat cannot adjudicate disputes not involving public utility services and awards obtained through fraud are void. The court emphasized that the validity of a compromise decree can be challenged if obtained by fraud. (Paras 8, 10, 12)
(C) Delay - The court considered the delay in filing the petition, noting the petitioners' absence due to employment outside the jurisdiction. (Paras 16-17)
Facts of the case:
The petitioners challenged an award from the Permanent Lok Adalat regarding ancestral properties, claiming it was fraudulently executed without their knowledge.
Findings of Court:
The court found that the Permanent Lok Adalat lacked jurisdiction over property disputes and that the award was obtained through fraud.
Issues: The main issues were whether the Permanent Lok Adalat had jurisdiction over the property matter and whether the award was valid given the allegations of fraud.
Ratio Decidendi: The court ruled that the Permanent Lok Adalat does not have jurisdiction over non-public utility service disputes and that awards obtained through fraud can be quashed.
Result: The award dated 27.08.2010 was quashed.
JUDGMENT :
SANJAY KUMAR DWIVEDI, J.
1. Heard Mr. Ankit Kumar, learned counsel for the petitioners, Mr. Shahid Yunus, learned counsel for opposite party nos. 1 and 2 and Mr. Suraj Singh, learned counsel for opposite party no.3.
2. This petition has been filed under Article 227 of the Constitution of India praying therein to quash the award dated 27.08.2010 passed by Permanent Lok Adalat, Deoghar in P.L.A. Case No. 42/2010 (Kartik Nath Thakur vs. Rameshwar Thakur & Ors.). The further prayer is made to declare the award dated 27.08.2010 void, nullity in the eyes of law and not binding against the petitioners as it is fraudulently and collusively executed between the parties to debar the petitioners from their ancestor properties.
3. Mr. Ankit Kumar, learned counsel for the petitioners submits that the land and properties appertaining to Jamabandi No.7 of Mouza Amarwa, Thana No.530 within Police Station Mohanpur, Sub-Division and District-Deoghar along with Jamabandi No.8, Mouza Agiya, Thana No.527, within Police Station Mohanpur, Sub-Division and District- Deoghar are the subject matter for the present petition. He further submits that the said properties are ancestor, non-transferrable raiyati Jamabandi lands of the petitioners and opposite parties recorded in the name of their ancestors, namely, Jagat Chandra Thakur during last Gentzer Survey Settlement and subsequently his son Rajanikant Thakur and further his son Shambhunath Thakur inherited the properties and after the death of Shambhunath Thakur, the opposite party nos. 1 to 3 being the son of Shambhunath Thakur inherited the joint ancestral properties and the petitioners are the sons of opposite party no.3. He also submits that the petitioners are co-parcener in the joint Hindu family and the aforesaid land and property belongs to the joint property among them. He then submits that the petitioners were working in a private company in different cities and, therefore, they were residing outside Deoghar. He further submits that opposite party nos. 1 and 2 suppressed and concealed the fact and fraudulently misrepresented opposite party no.3 about the compromise and family arrangement of the properties and received his signature over the document on the pretext of ongoing Survey Settlement proceeding. He then submits that there was no dispute between opposite party nos. 1, 2 and 3; neither in the civil court nor in revenue court and the said compromise was made in the pre-litigation stage itself before the Permanent Lok Adalat. He also submits that opposite party no.3 being an old aged person aged about 73 years then fraudulently induced by other opposite parties to put his signature over the said document. He submits that the Permanent Lok Adalat, Deoghar by considering the said document in its prelitigative stage and registered the same as P.L.A. Case No.42/2010 and disposed of the matter by Award dated 27.08.2010. He submits that when this fact has come to the knowledge of the petitioners, they have filed the present C.M.P. He also submits that in light of the definition made under Section 22-A of the Legal Services Authorities Act, 1987 (hereinafter to be referred as “the Act, 1987”) only public utility service can be subject matter before the Permanent Lok Adalat and such type of litigation cannot be the subject matter in the Permanent Lok Adalat. On these grounds, he submits that the impugned award may kindly be quashed.
4. Mr. Suraj Singh, learned counsel for opposite party no.3 submits that the dispute in question cannot be the subject matter of the Permanent Lok Adalat.
5. Mr. Shahid Yunus, learned counsel for opposite party nos. 1 and 2 vehemently opposed the prayer and submits that after 14 years, the present petition has been filed and on the ground of delay and laches, this petition is fit to be rejected. He then submits that the signature of opposite party no.3 is there and in view of that, the learned court has passed the said award and, as such, there is no illegality
The Permanent Lok Adalat lacks jurisdiction over property disputes not involving public utility services, and awards obtained through fraud are void.
Point of Law : Challenge to the award of Lok Adalat can be done only by filing a writ petition under Article 226 and/or Article 227 of the Constitution of India in the High Court and that too on very....
Lok Adalat compromise decrees, though final under Section 21, can be set aside in writ jurisdiction if vitiated by fraud like non-service of summons and misrepresentation to illiterate disabled party....
The court established that a valid reference to Lok Adalat is mandatory for its jurisdiction, and failure to comply with this requirement invalidates any award made.
The Permanent Lok Adalat lacks jurisdiction over non-public utility services and its awards are null if not grounded in proper jurisdiction as per the Legal Services Authorities Act.
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