A Lok Adalat Award is invalid and can be challenged if it lacks a valid compromise or settlement between the parties as mandated by the Legal Services Authorities Act, 1987.

ORDER:

(Per Hon’ble Justice Moushumi Bhattacharya)

1. The petitioner prays for setting aside of Lok Adalat Award dated 09.03.2019 in C.C.No.536 of 2019 passed by I Additional Judicial First Class Magistrate, Warangal and for a consequential direction on the respondent No.3 (the Station House Officer, Inthezargunj Police Station, Warangal), to conduct the trial against the respondent No.4 in connection with C.C.No.536 of 2019.

2. The brief facts leading to the filing of the present Writ Petition are as follows. These facts are reflected from the charge-sheet dated 22.02.2019 in FIR No.217 of 2017.

(a) On 29.06.2018 at 12.30 hours, the petitioner filed a complaint in the Police Station, Inthezargunj, Warangal District stating that the petitioner is the authorized person of M/s.Sri Sai Corporation Chillies Merchants and Export Suppliers, New Grain Market, Enumamula, Warangal, which deals with the purchase of chillies from farmers and export of the produce to needy customers throughout India. One Satpal Suraj Prakash (respondent No.4) approached the petitioner introducing himself as a big customer and placed orders for purchase of chillies assuring the petitioner that he will pay the amounts after delivery of the stock. The petitioner accordingly supplied a stock of chillies to the respondent No.4 from 21.02.2017 to 30.05.2017 for a total amount of Rs.2,13,92,636/-. The petitioner was paid only Rs.91,00,000/- and a balance of Rs.1,22,92,636/- remained outstanding. The respondent No.4 failed to pay the balance amount despite repeated assurances and threatened the petitioner with dire consequences if the petitioner continued to demand the balance payment.

(b) The Lok Adalat passed the impugned Award on 09.03.2019. The petitioner sent a Legal Notice to the respondent No.4 on 26.02.2022 stating that the respondent No.4 promised to repay the balance amount of Rs.13,00,000/- to the petitioner within three months but failed to do so. The respondent No.4 has not disclosed any reply to the Legal Notice in its counter to the Writ Petition.

3. Learned counsel appearing for the petitioner seeks setting aside of the Lok Adalat Award on the ground that the impugned Award was passed without the consent of the petitioner and in the absence of the respondent No.4 and closed the said CC as compromise between the parties. Counsel submits that the petitioner’s Declaration dated 30.08.2017, relied upon by the respondent No.4, is a forged document and further submits that the Legal Notice sent to the respondent No.4 on 26.02.2022 does not acknowledge payment of the outstanding dues by the respondent No.4.

4. We have heard the learned Government Pleader for Home appearing for the State respondents. The Government Pleader submits that the petitioner cannot be permitted to challenge the Lok Adalat Award after four years.

5. Learned counsel appearing for the respondent No.4 urges that the Writ Petition should be dismissed since the Lok Adalat Award cannot be questioned after the parties have compromised the matter. Counsel relies on the Declaration of the petitioner’s firm, Sri Sai Corporation, dated 30.08.2017 by which the petitioner declared that the petitioner has realized a total amount of Rs.80,00,000/- as of the Settlement and stated that there are no pending dues from the respondent No.4. Counsel further submits that the petitioner cannot plead ignorance of the impugned Lok Adalat Award after having referred to it in his Legal Notice dated 26.02.2022.

6. We have considered the submissions made on beha