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It is emphasized that Lok Adalat awards are final and have the status of a decree, but if misconduct such as extortion is proved, legal action can be initiated against the offending representatives ["CASA GRANDE PRIVATE LIMITED vs V.RAVICHANDRAN - Madras"], ["Viranchi Toppo S/o. Late Fandara Toppo VS Dharam Singh Thakur S/o. Jamsingh Thakur - Chhattisgarh"].
How to Report Extortion by Lok Adalat Representatives - Main points and insights:
Analysis and Conclusion:Extortion by Lok Adalat representatives, though not widespread, is a serious issue that undermines the integrity of the dispute resolution process. Victims or witnesses should gather evidence and report misconduct to appropriate authorities, including police and judicial bodies, to ensure accountability. The legal system provides mechanisms to challenge illegal conduct and awards obtained through coercion or misrepresentation. Proper reporting and legal action are crucial to prevent abuse of the Lok Adalat process and uphold justice ["CASA GRANDE PRIVATE LIMITED vs V.RAVICHANDRAN - Madras"], ["Manish Rathore S/o Mohanlal VS State of Rajasthan through PP - Rajasthan"].
Lok Adalats are a cornerstone of India's alternative dispute resolution (ADR) system, designed to provide quick, amicable resolutions to disputes. However, what happens when a Lok Adalat representative crosses the line into extortion—demanding money through coercion or threats? If you're asking, What if a Lok Adalat representative is extorting money? How to report?, this guide breaks it down. We'll explore the legal framework, why such acts are unlawful, and practical steps to take action. Note: This is general information, not specific legal advice. Consult a qualified lawyer for your situation.
Lok Adalats, established under the Legal Services Authorities Act, 1987, aim to facilitate voluntary, amicable settlements guided by justice and fairness B. P. MOIDEEN SEVAMANDIR VS A. M. KUTTY HASSAN - 2008 0 Supreme(SC) 1835State of Punjab VS Jalour Singh - 2008 0 Supreme(SC) 88. They are not traditional courts but conciliatory forums where parties reach mutual compromises.
As clarified by the Supreme Court in Afcons Infrastructure Ltd., the making of the award is merely an administrative act of incorporating the terms of settlement or compromise agreed by parties and that there cannot be an award when there is no settlement B. P. MOIDEEN SEVAMANDIR VS A. M. KUTTY HASSAN - 2008 0 Supreme(SC) 1835. Key principle: Orders are binding only on genuine, mutual consent—no coercion allowedB. P. MOIDEEN SEVAMANDIR VS A. M. KUTTY HASSAN - 2008 0 Supreme(SC) 1835.
Any pressure tactics undermine this. For instance, in cases involving public utility services, Permanent Lok Adalats have had awards set aside when claims involved alleged duress or delays suggesting non-voluntary agreements Puri Construction Pvt. Ltd. VS Permanent Lok Adalat - 2023 Supreme(P&H) 3061.
Extortion—unlawfully coercing or threatening payment outside a genuine settlement—constitutes abuse of process and criminal misconductB. P. MOIDEEN SEVAMANDIR VS A. M. KUTTY HASSAN - 2008 0 Supreme(SC) 1835State of Punjab VS Jalour Singh - 2008 0 Supreme(SC) 88. Lok Adalat members or representatives must not impose views, pressurize parties, or demand money under duress. The Court in Afcons emphasized: Lok Adalats should not act as courts, nor should they impose their views or pressurize parties into settlement B. P. MOIDEEN SEVAMANDIR VS A. M. KUTTY HASSAN - 2008 0 Supreme(SC) 1835.
Supporting cases reinforce this:- Awards passed under coercion or misrepresentation can be challenged, as they violate the finality under Sections 20 and 21 of the Legal Services Authorities Act Mridul Rajkhowa, S/o- Late Jughdhor Rajkhowa vs District Legal Services Authority, Nagaon district - 2025 Supreme(Gau) 789. One ruling noted: The award of a Lok Adalat is final and binding unless challenged on clearly established grounds such as fraud or misrepresentation Mridul Rajkhowa, S/o- Late Jughdhor Rajkhowa vs District Legal Services Authority, Nagaon district - 2025 Supreme(Gau) 789.- In a cheque dishonor case, a challenge based on coercion was dismissed only because no sufficient evidence was shown, highlighting the need for proof but affirming limited review grounds like fraud Mridul Rajkhowa, S/o- Late Jughdhor Rajkhowa vs District Legal Services Authority, Nagaon district - 2025 Supreme(Gau) 789.- Another instance involved quashing an award for a delayed refund claim amid duress allegations, as the Permanent Lok Adalat failed to consider limitation and coercion properly Puri Construction Pvt. Ltd. VS Permanent Lok Adalat - 2023 Supreme(P&H) 3061.
Even judicial officers in Lok Adalats cannot leverage their positions for improper challenges or enforcement; proper writ petitions under Article 226 are required for fraud claims Praveen Anand VS Asst. General Manager, State Bank of India - 2024 Supreme(Pat) 477.
Watch for red flags:- Demands for payment unrelated to the dispute settlement.- Threats of adverse awards, legal action, or other harm if money isn't paid.- Pressure to sign compromises without time to review or consult.- Ignoring voluntary consent, as seen in cases where parties claimed misrepresentation before signing Mridul Rajkhowa, S/o- Late Jughdhor Rajkhowa vs District Legal Services Authority, Nagaon district - 2025 Supreme(Gau) 789.
Genuine settlements are enforceable, but coerced ones are invalid and challengeable B. P. MOIDEEN SEVAMANDIR VS A. M. KUTTY HASSAN - 2008 0 Supreme(SC) 1835. False accusations carry risks, so document everything.
If you suspect extortion, act promptly:1. Document Evidence: Record details—dates, names, threats, demands, witnesses. Save communications, audio/video if legal.2. File Police Complaint: Lodge an FIR at the local police station under relevant IPC sections (e.g., 384 for extortion). Describe coercive acts outside lawful procedures B. P. MOIDEEN SEVAMANDIR VS A. M. KUTTY HASSAN - 2008 0 Supreme(SC) 1835.3. Approach Legal Services Authorities: Complain to district/state legal services authority overseeing the Lok Adalat.4. Challenge the Award: If a coerced settlement was passed, file a writ petition in High Court under Article 226 on grounds of fraud/coercion Praveen Anand VS Asst. General Manager, State Bank of India - 2024 Supreme(Pat) 477Mridul Rajkhowa, S/o- Late Jughdhor Rajkhowa vs District Legal Services Authority, Nagaon district - 2025 Supreme(Gau) 789.5. Seek Court Annulment: Courts can void duress-based orders B. P. MOIDEEN SEVAMANDIR VS A. M. KUTTY HASSAN - 2008 0 Supreme(SC) 1835.
In one case, a bank's challenge to a misrepresented settlement was redirected to proper channels, granting liberty to file writs Praveen Anand VS Asst. General Manager, State Bank of India - 2024 Supreme(Pat) 477.
Other examples:- Permanent Lok Adalats erred in adjudicating without conciliation in theft cases, lacking jurisdiction Jaipur Vidyut Vitran Nigam Limited Through Executive Engineer VS Rajendra Prasad Son Of Kali Charan Sharma - 2023 Supreme(Raj) 87.- No consent means no authority to pass orders, as in motor accident claims National Insurance Company Ltd. VS Arpita Debbarma - 2015 Supreme(Tri) 291.
Lok Adalats promote justice through consent, not coercion. Extortion by representatives is illegal, reportable, and prosecutable. By documenting and reporting swiftly, you uphold the system's integrity. For personalized guidance, contact a legal professional or local authorities.
References:- B. P. MOIDEEN SEVAMANDIR VS A. M. KUTTY HASSAN - 2008 0 Supreme(SC) 1835: Supreme Court on voluntary settlements.- State of Punjab VS Jalour Singh - 2008 0 Supreme(SC) 88: Unlawful coercive acts.- Additional cases: Puri Construction Pvt. Ltd. VS Permanent Lok Adalat - 2023 Supreme(P&H) 3061, Praveen Anand VS Asst. General Manager, State Bank of India - 2024 Supreme(Pat) 477, Mridul Rajkhowa, S/o- Late Jughdhor Rajkhowa vs District Legal Services Authority, Nagaon district - 2025 Supreme(Gau) 789, etc.
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manner approaching the plaintiff with regard to extorting
Permanent Lok Adalat (Public Utility Services), Faridabad. ... The award dated 08.03.2019 passed by the Permanent Lok Adalat (Public Utility Services), Faridabad is set aside. ... She contends that the said aspect has been duly noticed by the Permanent Lok Adalat (Public Utility Services), Faridabad in its award. ... He contends that none of the aforesaid illegality have been noticed by the Permanent Lok Adalat (Public Utility Services), Faridabad wh....
from the Lok Adalat. ... Though, a settlement has been entered into by an Officer of the Bank; the Bank being the custodian of public money, the settlement having been clearly demonstrated to be on misrepresentation of facts, the Bank was perfectly justified in approaching the DRT against the order of the Lok Adalat, was the ... Merely because a sitting Judicial Officer is the Lok Adalat or a member of the Lok Adalat, that would not....
representative was present” and disposed of the case. ... of the Lok Adalat affix their signature. ... The respondent Nos.5 to 10 assert that they along with Respondent 11 appeared before the Lok Adalat, which passed an award on 08.09.2023 after duly recording the presence of the authorised representative of the de facto complainant. ... or Committee organising the Lok Adalat under sub-section (1) of section19 may, on receipt of an application from a....
Adalat & Ors. ... Adalat at Ferozepur though strenuously urged has been rightly rejected by the Lok Adalat as the cause of action to be right in holding that the petitioner Company indulged in unfair The Permanent Lok Adalat in its self-explanatory and self- Consequently, the Permanent Lok Adalat has directed p style="position:absolute;white-space:pre;margin:0;padding:0;top:512pt;left:90pt
of the Lok Adalat. ... Lok Adalat and, upon being misrepresented, signed the compromise deed. ... of sub-section (5) of section 19 that such matter needs to be determined by a Lok Adalat, refer such matter to the Lok Adalat, for determination: Provided that no matter shall be referred to the Lok Adalat except after giving a reasonable opportunity of being heard to the other ... Award of Lok #HL_ST....
of the Lok Adalat. ... , set aside the order of the Lok Adalat. ... Such an order is not an award of the Lok Adalat. Being contrary to law and beyond the power and jurisdiction of the Lok Adalat, it is void in the eye of the law. ... Award of Lok Adalat.- (1) Every award of the Lok Adalat shall be deemed to be a decree of a civil court or, as the case may be, an order of any othe....
This matter is taken up before the National Lok Adalat, held on 12th November, 2022. ... This matter has been placed before the “Lok Adalat”, on the basis of the settlement, which had been made by the respective counsels on 10.10.2022, before the coordinate Bench of this Court. ... The Second Appeal arises out of the suit for money decree for the payment of Rs.3,63,840/-. ... Pulak Raj Agarwal, have made a statement at bar, that all the money, which was due to be payable under the s....
This matter is taken up before the National Lok Adalat, held on 12th November, 2022. ... This matter has been placed before the “Lok Adalat”, on the basis of the settlement, which had been made by the respective counsels on 10.10.2022, before the coordinate Bench of this Court. ... The Second Appeal arises out of the suit for money decree for the payment of Rs.3,63,840/-. ... Pulak Raj Agarwal, have made a statement at bar, that all the money, which was due to be payable under the s....
It is in this case, the Permanent Lok Adalat shall not adjudicate the dispute. ... As per Section 154(5) of the Act of 2003, the Special Court is empowered to determine the civil liability against a consumer, in terms of money for theft of electricity. ... Section 22C of the Act of 1987 reads as under: “Section 22C -Cognizance of case of 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 #HL_STAR....
9. It is further denied on the ground of manhandling or mishandling of the goods. It is in reference to the survey report but, therein, the Permanent Lok Adalat ignored as to how the damage was caused. It is not due to manhandling or mishandling of the goods but the trolly carrying the goods overturned causing damage to the goods. The denial on the ground of manhandling or mishandling thus cannot be said to be proper.
A Lok Adalat has no right or authority to adjudicate on a matter and pass an order without the consent of the parties. A doctor is there to assist the Lok Adalat only for the purpose of assisting the Lok Adalat in coming to the conclusion as to what is the nature of injuries etc. The doctor who is present before the Lok Adalat is a person to assist the Lok Adalat and is not a witness in the case.
What is interesting to note is, after the learned Judge referred the matter to Lok Adalat, on the very same day, the matter is settled before the Lok Adalat. What I am unable to understand is, if the parties had entered into a settlement and they were ready with an application under Order XXIII Rule 3 of CPC, the proper course was to fiie the same before the Court and get a decree passed in terms of Order XXIII Rule 3 of CPC.
Having said that, this Court feels no hesitation to conclude that the learned Permanent Lok Adalat was very much vested with the jurisdiction to entertain and decide the application of respondent-claimant on merits. Thus, the Permanent Lok Adalat has committed no error of law while passing the impugned award, which deserves to be upheld. That is what has been done by the Permanent Lok Adalat.
Pre-litigation, Conciliation and Settlement were introduced by Chapter VI-A by Act 37/2002 which came into effect from 11.06.2002. These Permanent Lok Adalats are established for exercising such jurisdiction in respect of one or more public utility services and for such areas as may be specified in the notification. Section 22-A defines what is a ‘Permanent Lok Adalat’ and what is a ‘Public Utility Service.’ Clause (b) of Section 22-A defines what a ‘Public Utility Services’ is, which reads as under: “Public utility service” means any- (i) transport service for the carriage....
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