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Limited Jurisdiction Based on Monetary Thresholds The pecuniary jurisdiction of Lok Adalats, including Permanent Lok Adalats, is fixed by law and can be increased by the Central Government from time to time. For instance, the jurisdiction of a Permanent Lok Adalat is typically up to Rs. 10 Lakhs, beyond which it cannot entertain disputes. This ensures that Lok Adalats handle only disputes within specified financial limits [["Jodhpur Vidyut Vitaran Nigam Limited vs Suresh Kumar S/o Shri Ramkumar - Rajasthan"], ["Uttar Haryana Bijli Vitran Nigam Limited VS Shyam Lal - Punjab and Haryana"]].
Jurisdiction Restricted to Certain Matters Lok Adalats have jurisdiction primarily over disputes related to pending cases or matters falling within their territorial and pecuniary limits. They do not have authority over cases involving non-compoundable offences or matters exceeding their monetary jurisdiction. For example, they lack jurisdiction over offences not classified as compoundable under law [["Patel Dineshbhai Nanjibhai VS State Of Gujarat - Gujarat"], ["Sindhu A. K. VS Nizar Kochery, S/o Sulaiman - Kerala"]].
Specialized Jurisdiction of Permanent Lok Adalats Permanent Lok Adalats are confined to disputes concerning public utility services, with their jurisdiction also defined by monetary limits (e.g., Rs. 10 Lakhs). Their powers are broader than regular Lok Adalats but still limited to specific dispute types and monetary thresholds. Disputes exceeding these limits or unrelated to public utility services fall outside their jurisdiction [["Jodhpur Vidyut Vitaran Nigam Limited vs Suresh Kumar S/o Shri Ramkumar - Rajasthan"], ["Uttar Haryana Bijli Vitran Nigam Limited VS Shyam Lal - Punjab and Haryana"], ["Krishna Murari Tiwari Son of Late Sheo Murat Tiwari VS Ram Krit Tiwari Son of Late Bachai Tiwari - Patna"]].
Jurisdictional Limitations and Overlaps The jurisdiction of Lok Adalats and Permanent Lok Adalats does not overlap with civil or criminal courts beyond their specified limits. When disputes involve amounts exceeding their pecuniary jurisdiction, the matter must be taken to a competent court with appropriate jurisdiction, such as a Sub Court or Civil Court [["Sindhu A. K. VS Nizar Kochery, S/o Sulaiman - Kerala"]].
Procedural Restrictions Once an application is made to a Permanent Lok Adalat, parties are barred from approaching courts on the same dispute, emphasizing the importance of jurisdictional competence. Orders or awards passed beyond the prescribed jurisdiction are deemed illegal and can be set aside [["Ramdhari Singh son of Late Laxminath Singh VS Nand Kishore Singh son of Late Kunj Bihari Singh - Jharkhand"], ["Bokaro Power Supply Company (P) Limited Bokaro Steel City, Bokaro VS Brahmadeo Prasad, Bihar Colony, Chas - Jharkhand"]].
The pecuniary jurisdiction of Lok Adalats, including Permanent Lok Adalats, is primarily defined by the monetary limits set by law and notifications, typically ranging up to Rs. 10 Lakhs. They are restricted to disputes related to public utility services or pending cases within their territorial and financial jurisdiction. Orders or awards beyond these limits or unrelated to their designated scope are invalid. Proper jurisdiction ensures the effective and lawful functioning of Lok Adalats, preventing overreach into matters outside their legal competence.
References:- ["Sindhu A. K. VS Nizar Kochery, S/o Sulaiman - Kerala"]- ["Jodhpur Vidyut Vitaran Nigam Limited vs Suresh Kumar S/o Shri Ramkumar - Rajasthan"]- ["Uttar Haryana Bijli Vitran Nigam Limited VS Shyam Lal - Punjab and Haryana"]- ["Krishna Murari Tiwari Son of Late Sheo Murat Tiwari VS Ram Krit Tiwari Son of Late Bachai Tiwari - Patna"]- ["Bokaro Power Supply Company (P) Limited Bokaro Steel City, Bokaro VS Brahmadeo Prasad, Bihar Colony, Chas - Jharkhand"]- ["Ramdhari Singh son of Late Laxminath Singh VS Nand Kishore Singh son of Late Kunj Bihari Singh - Jharkhand"]
In the realm of alternative dispute resolution (ADR) in India, Lok Adalats offer a swift and cost-effective way to settle disputes. But a common question arises: Does Permanent Lok Adalat have the jurisdiction to decide a dispute on its merits? This is particularly relevant for parties dealing with civil matters or public utility service issues. Understanding the scope under the Legal Services Authorities Act, 1987 (the Act), can help litigants choose the right forum. This post breaks down the jurisdiction, procedures, limitations, and insights from judicial precedents. Note: This is general information and not specific legal advice. Consult a qualified lawyer for your case.
The Permanent Lok Adalat (PLA) operates under Chapter VI-A of the Legal Services Authorities Act, 1987, focusing on efficient dispute resolution. Its pecuniary jurisdiction is key to determining eligible cases.
This limit ensures PLA deals with accessible claims, promoting quicker resolutions without overburdening higher courts.
Yes, PLA may decide disputes on merits, but only after specific procedural steps. Section 22C mandates that PLA first attempts conciliation.
Awards are final, non-appealable, and enforceable like civil decrees. United India Insurance Co. Ltd. VS Ajay Sinha and another - Supreme Court (2008)Life Insurance Corporation of India VS Harjeet Kaur - Jharkhand (2014)
In one case, the court upheld PLA's award in an insurance claim dispute, noting: the Permanent Lok Adalat while conducting conciliation proceedings or deciding a dispute on merit under the Law, is to be guided by the principles of natural justice. Oriental Insurance Co. Ltd. VS Virender And Another - 2018 Supreme(P&H) 3564
PLA's powers extend beyond regular Lok Adalats, especially for public utility services.
PLA's adjudication power is not absolute.
In property occupation suits settled via compromise, courts upheld awards if procedures were followed, distinguishing from unauthorized referrals. Benjamin David Jayasingh VS Hendry Selvaraj - 2019 Supreme(Mad) 3423
Courts have refined PLA's role:
These precedents emphasize: PLA is powerful for eligible disputes but must stay within statutory bounds.
To leverage PLA effectively:- Assess Eligibility: Verify claim value under Rs. 1 Crore and public utility link.- Prepare for Conciliation: Approach with settlement intent; merits decision is secondary.- Avoid Exclusions: Steer clear of criminal or non-compoundable matters.- Seek Professional Guidance: Lawyers can navigate referrals from courts or direct approaches.
Permanent Lok Adalat generally has jurisdiction to decide disputes on merits after failed conciliation, within Rs. 1 Crore pecuniary limits, for civil and public utility matters, excluding non-compoundable offences. Its awards provide finality, reducing court backlogs, but procedural lapses or jurisdictional mismatches can lead to nullification, as seen in cases like generalized directions or unrelated partitions. Chairman, State Bank of India VS Permanent Lok Adalat (Public Utility Services) - 2024 Supreme(P&H) 534Lallan Pandey VS State of Bihar - 2023 Supreme(Pat) 748
Key Takeaways:- Prioritize conciliation per Sections 22C and 22D.- Confirm public utility or civil nature within limits.- Awards are binding but challengeable on jurisdiction grounds via writs.- Ideal for speedy, equitable resolutions in eligible cases.
For tailored advice, consult legal experts. References include key provisions and cases like Chief Administrative Officer, Maharashtra Jeevan Pradhikaran VS Satish Gajanan Pradhan - Bombay (2022), Raghu Nath Ram S/o Late Bilar Ram VS State of Jharkhand - Jharkhand (2022), Dr. Anil Sharma VS The District Legal Services Authority - Rajasthan (2005), EXECUTIVE ENGINEER, ELECTRICITY DISTRIBUTION DIVISION-II VS STATE OF U. P. - Allahabad (2018), Life Insurance Corporation of India VS Harjeet Kaur - Jharkhand (2014), M/s Piyus Buildwell India Ltd. VS Permanent Lok Adalat - Punjab and Haryana (2019), United India Insurance Co. Ltd. VS Ajay Sinha and another - Supreme Court (2008), State Of Karnataka by Akkur Police Station VS Shekhar S/O Late Madaiah - Karnataka (2021), Shambhoo Nath VS State of Bihar - Patna (2012), Chairman, State Bank of India VS Permanent Lok Adalat (Public Utility Services) - 2024 Supreme(P&H) 534, Lallan Pandey VS State of Bihar - 2023 Supreme(Pat) 748, Benjamin David Jayasingh VS Hendry Selvaraj - 2019 Supreme(Mad) 3423, Oriental Insurance Co. Ltd. VS Virender And Another - 2018 Supreme(P&H) 3564, Shanti Devi VS Indore Cloth Market Grah Nirman Sahkari Sanstha Maryadit - 2017 Supreme(MP) 552, Lahura Bai v. Chief General Manager South Eastern Coal Fields Limited Bilaspur (Chhattisgarh) - 2025 Supreme(Online)(Chh) 10652.
This post aims to inform on ADR trends; laws evolve, so verify current status.
#PermanentLokAdalat #LokAdalatJurisdiction #LegalADR
(ii) any matter which is falling within the jurisdiction of, and is not brought before, any Court for which the Lok Adalat is organised: Provided that the Lok Adalat shall have no jurisdiction in respect of any case or matter relating to an offence not compoundable under any law ... In other words, if a matter referred by the Rent Control Court to a Lok Adalat....
Having not been conferred with such powers, any exercise thereof would clearly be exercising a jurisdiction even beyond the territorial boundaries and the pecuniary jurisdiction conferred upon it. 11. ... The challenge being limited and confined, the issue as to whether the Permanent Lok Adalat (Public Utility Services) would have any jurisdiction or not to issue generalized directions i....
However, the Central Government may increase the said pecuniary jurisdiction from time to time. ... jurisdiction of the Permanent Lok Adalat shall be up to Rupees Ten Lakhs. ... Consequently, such a dispute falls beyond the limited jurisdiction conferred upon the Permanent Lok Adalat. 10. ... While the jurisdiction of the Permanent #H....
It further provides that it would not have any jurisdiction in respect of any matter relating to an offence not compoundable. The pecuniary jurisdiction of the Permanent Lok Adalat is also fixed under the Act and also by way of further notifications issued from time to time. ... Powers of Lok Adalat or Permanent Lok Adalat. ... #HL_ST....
Thus, a Permanent Lok Adalat Court has no jurisdiction with respect to any matter other than the public utility services. 9. ... The subject matter of the suit had no connection at all with the public utility services for which Permanent Lok Adalats are established and only over which the Permanent Lok Adalat can have jurisdiction. ... Cognizance of cases by Permanent #....
the public policy or the Permanent Lok Adalat has no jurisdiction to entertain the claim. ... While the jurisdiction of the Permanent Lok Adalat is limited to disputes regarding public utility services, crucially, its powers are wider than the Lok Adalat in many respects:" Thereafter, their Lordships further held that an application made to the Permane....
Learned counsel for the petitioners submits that the award passed by the Permanent Lok Adalat is illegal and without jurisdiction. ... Therefore, this Court is of the opinion that the award of the Permanent Lok Adalat is without jurisdiction.” 11. ... Cognizance of cases by Permanent Lok Adalat. – (1) Any party to a dispute may, before the dispute is b....
The jurisdiction of both Permanent Lok Adalat and Commercial Courts may overlap but it does not mean that the Permanent Lok Adalat will not have jurisdiction if dispute has some commercial aspect. 7. ... Thus, on failure of conciliation between the parties, the Permanent Lok Adalat has jurisdiction to decide the dispute. ... #HL_START....
Cognizance of cases by 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 Adalat for the settlement of dispute:Provided that the Permanent Lok Adalat shall not have jurisdiction in respect ... Award dated 31.07.2024 passed by the Chairman, Permanent Lok #HL_S....
Provided that the Lok Adalat shall have no jurisdiction in respect of any case or matter relating to an offence not compoundable under any law. (5) A Lok Adalat shall have jurisdiction to determine and to arrive at a compromise or settlement between the parties to a dispute in respect of :- (i) any case pending before; or (ii) any matter which is falling within the jurisdictio....
(iv) it also provides that before the dispute is brought before any Court, any party to the dispute may make an application to the Permanent Lok Adalat for settlement of the dispute; (iii) the pecuniary jurisdiction of the Permanent Lok Adalat shall be up to Rupees Ten Lakhs. However, the Central Government may increase the said pecuniary jurisdiction from time to time. It shall have no jurisdiction in respect of any matter relating to an offence not compoundable under any law;#HL_EN....
Before the Lok-Adalat both the parties appeared and submitted a joint compromise deed, wherein it is stated that if the petitioner/defendant pays Rs. 40 lakhs to the respondent/first plaintiff on or before 01.11.2018, the suit property will be settled in favour of the petitioner/defendant or otherwise, the petitioner/defendant should receive Rs. 22,50,000/- to be given by the respondent/first plaintiff and give vacant possession of the suit property. Merely because the value of settl....
6. The petitioner took three preliminary objections before the permanent Lok Adalat viz. (a) That the Permanent Lok Adalat did not have pecuniary jurisdiction. (b) That the Permanent Lok Adalat does not have jurisdiction to hear the matters of real estate. (c) Power of the Lok Adalat is confined only to the mediation between the parties and it is not vested with the power to pass any order on merits.
A Coordinate Bench of this Court in ICICI Lombard General Insurance Co. Ltd. Having accepted and participated in the proceedings of the Lok Adalat, the question of jurisdiction cannot be permitted to be raised to defeat the validity of the proceedings in favour of an incumbent. Moreover, as per Section 22 (D) of the Act, the Permanent Lok Adalat while conducting conciliation proceedings or deciding a dispute on merit under the Law, is to be guided by the principles of natural justice, objectiv....
Objections regarding pecuniary jurisdiction of the permanent Lok Adalat is misconceived as for considering the cases already pending in the Court, no pecuniary jurisdiction has been set by the Act, 1987. This Court is not a proper forum to consider such issues and they may be raised in an appropriate proceeding. Pecuniary jurisdiction up to Rs.10 lacs has been settled under section 22C of the Act, 1987 for permanent Lok Adalat constituted for pre-litigation conciliation and s....
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