SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2022 Supreme(Telangana) 511

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
A.VENKATESHWARA REDDY, J.
Gorentla Kishan – Appellant
Versus
Kancha Ramakka – Respondent
Civil Revision Petition No.2 OF 2017
Decided on : 27-04-2022

Advocates:
Advocate Appeared:
For the Appellant : C A R SESHAGIRI RAO
For the Respondent: G RAMACHANDRA REDDY

IMPORTANT POINT
The main legal point established in the judgment is the finality and binding nature of Lok Adalat awards, and the limited grounds on which they can be challenged under Article 226 and/or Article 227 of the Constitution of India.

Headnote:

CPC - Civil Procedure Code - Order 22, Rule 3(A) - The court discussed the provisions of Order 22, Rule 3(A) of the Civil Procedure Code and the legal framework regarding the setting aside of a compromise decree passed by Lok Adalat. The court emphasized the finality and binding nature of awards passed by Lok Adalat and the limited grounds on which they can be challenged under Article 226 and/or Article 227 of the Constitution of India.

Fact of the Case:

The plaintiff filed a suit for perpetual injunction, which was settled through a compromise decree passed by Lok Adalat. Subsequently, the plaintiff filed an application to set aside the award, alleging coercion and exceeding the terms of compromise. The trial court set aside the Lok Adalat award, leading to the defendant filing a Civil Revision Petition (CRP).

Finding of the Court:

The court found that the trial court had committed a jurisdictional error by setting aside the Lok Adalat award, as the only remedy available to challenge such an award was to file a writ petition under Article 226 and/or Article 227 of the Constitution of India in the High Court.

Issues: The key issues revolved around the jurisdiction of the trial court to set aside the Lok Adalat award, the finality and binding nature of Lok Adalat awards, and the appropriate remedy available to challenge such awards.

Ratio Decidendi: The court held that the trial court had erred in setting aside the Lok Adalat award and emphasized that the only remedy available to challenge such awards was to file a writ petition under Article 226 and/or Article 227 of the Constitution of India in the High Court, and that too on very limited grounds.

Final Decision: The Civil Revision Petition was allowed, and the order setting aside the Lok Adalat award was set aside. The plaintiff was directed to file a writ petition before the High Court if aggrieved by the award, and the parties were to bear their respective costs.

Judgement Key Points

Certainly. Based on the provided legal document, the key points are as follows:

  1. The award passed by Lok Adalat, when based on a settlement signed by the parties, is final and binding, and it can be executed as if it were a decree of a civil court. No appeal lies against such an award, and challenges can only be made through a writ petition under Article 226 or 227 of the Constitution of India, on very limited grounds (!) (!) .

  2. If the Lok Adalat's order is not based on a settlement but directs parties to approach the court or High Court for further proceedings, it is not considered an award of the Lok Adalat and cannot be challenged in the same manner (!) .

  3. The proper remedy for challenging a Lok Adalat award is a writ petition in the High Court under Article 226 or 227 of the Constitution of India. The trial court or subordinate courts do not have jurisdiction to revoke or set aside such awards on their own (!) (!) .

  4. Any attempt by a trial court to set aside or revoke a Lok Adalat award, especially through detailed inquiry, constitutes a jurisdictional error and is not permissible. Such actions are beyond the authority of the trial court and violate established legal principles (!) .

  5. The decision to set aside the Lok Adalat award in the case was reversed, and the award was restored. However, the aggrieved party has the right to challenge the award by filing a writ petition in the High Court, which will decide on the merits of the challenge (!) .

  6. The parties are to bear their respective costs, and any pending miscellaneous petitions are to be closed (!) .

These points emphasize the finality of Lok Adalat awards based on settlements, the limited scope of challenge, and the jurisdictional boundaries of subordinate courts versus the High Court in such matters.


ORDER:

This Civil Revision Petition is filed assailing the orders dated 09.10.2015 in I.A.No.238 of 2007 in O.S.No.697 of 2006 on the file of the Principal Junior Civil Judge, Warangal.

2. Application in I.A.No.238 of 2007 was filed under Order 22, Rule 3(A) of Civil Procedure Code (for short ‘CPC’) to set aside the compromise decree passed by Lok Adalat on 26.04.2006 in O.S.No.697 of 2006 on the file of the Principal Junior Civil Judge, Warangal. Learned Principal Junior Civil Judge, Warangal has allowed the said application by setting aside the Lok Adalat Award dated 26.04.2006 in O.S.No.697 of 2006 on the file of the Principal Junior Civil Judge, Warangal. Feeling aggrieved by the same, the defendant has filed this CRP.

3. Heard the learned counsel on both sides. The submissions made by the learned counsel on either sides have received due consideration of this Court. Perused the record.

4. For the sake of convenience the parties are hereinafter referred to as plaintiff and defendant as they were arrayed in OS No.697 of 2006 before the trial Court.

5. The plaintiff has filed O.S.No.697 of 2006 on the file of the Principal Junior Civil Judge, Warangal for the relief of perpetual injunction in respect of the suit schedule property and during pendency of the suit, the matter was referred to the Lok Adalat and it was settled in terms of compromise and an award was passed before the Lok Adalat on 26.04.2006. After passing the award before the Lok Adalat, the plaintiff has filed an application in I.A.No.238 of 2007 in O.S.No.697 of 2006 to set aside the award dated 26.04.2006 passed before the Lok Adalat.

6. Be it stated that the trial Court, after recording the evidence of PWs.1 to 5 and marking Exs.P1 to P5 on behalf of the plaintiff, has passed the impugned order. The relevant portion of the said order is extracted as below :

    “From sum of the above fact and discussion, it is clear that award passed by the Lok Adalat is beyond the scope of alleged terms of compromise arrived between the petitioner and the respondent and basing on that award Thota Sateesh cannot obtain the sale deed. The evidence of PWs.4 and 5 coupled with the evidence of PWs.1 and 2 clearly show that for the purpose of obtaining the decree of compromise, the respondent kept the life of husband of under threat and compelled the petitioner to sign on terms of compromise. So, the terms of compromise itself is vitiated by coercion. Consequently, the award passed by the Lok Adalat basing on these terms of compromise is illegal. Moreover as discussed supra, the award is exceeding the terms of compromise and the award is passed as if it is for specific performance of contract in favour of the third party to the present suit. In those circumstances, the petitioner is justified in challenging the award passed by the Lok Adalat. By the time of filing the petition there is no clear decision whether a suit can be filed challenging the award passed by the Lok Adalat and petition is filed as per the decision No.1 relied on by the counsel for the petitioner. Decision No.3 is recently cited and by that time already enquiry was completed and evidence was adduced by the petitioner. At this stage basing on technicalities, dismissing the petition directing the petitioner to file a suit is not proper. Hence, it is a fit case to set aside the award passed by the Lok Adalat on 26.04.2006.

7. Feeling aggrieved by the impugned order passed by the trial Court setting aside the Lok Adalat Award dated 26.04.2006, the defendant has filed this CRP alleging that the Principal Junior Civil Judge has usurped the jurisdiction which did not vest in him and the order under revision is beyond the jurisdiction of Principal Junior Civil Judge at Warangal. The learned Principal Junior Civil Judge is not competent to revoke the terms recorded before the Lok Adalat and he has acted against the judgments and settled principles laid by the Hon’ble Supreme Court and by this Court as the decree passed by Lok Ada

      Click Here to Read the rest of this document
      1
      2
      3
      4
      5
      6
      7
      8
      9
      10
      11
      SupremeToday Portrait Ad
      supreme today icon
      logo-black

      An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

      Please visit our Training & Support
      Center or Contact Us for assistance

      qr

      Scan Me!

      India’s Legal research and Law Firm App, Download now!

      For Daily Legal Updates, Join us on :

      whatsapp-icon Back to top