A PROJECT REPORT ON – “THE LACUNAS OF LOK-ADLATS IN INDIA –

A CRITICAL ANALYSIS”
MANIPAL UNIVERSITY JAIPUR

UNDER SUPERVISION OF:- SUBMITTED BY:-

Mr. SHANTANU ARPIT DHAKA
ASSISTANT PROFESSOR 151301016
 CERTIFICATE

This is to certify that Mr. Arpit Dhaka student of B.A.LL.B (Hons.), Sixth Semester, School of
Law, Manipal University Jaipur has completed the project work entitled “The lacunas of Lok-
Adalat in India – A Critical Analysis”, under my supervision and guidance.
It is further certify that the candidate has made sincere efforts for the completion of the project
work.

SUPERVISOR NAME

(Mr.Shantanu)
Assistant Professor
 ACKNOWLEDGEMENT

I express deep sense of gratitude and indebtness to our teacher Dr. Maryam Beg under whose
guidance valuable suggestions, constant encouragement and kind supervision the present project
was carried out. I am also grateful to college and faculty of law for their feedback and for keeping
us on schedule.
I also wish my sincere thanks to my friends who helped directly or indirectly by giving their
valuable suggestions.

Arpit Dhaka
Table of Contents

INTRODUCTION....................................................................................................................................... 5
CONSTITUTIONAL DIRECTIVES AND LEGISLATIONS ............................................................... 5
ORGANISATION AND STRUCTURE OF LOK ADALATS ............................................................... 7
PROCEDURE FOLLOWED IN A LOK ADALAT ................................................................................ 7
POWERS OF LOK ADALAT ................................................................................................................... 8
CASES SUITED FOR LOK ADALAT ..................................................................................................... 8
FINALITY OF LOK ADALAT AWARD ................................................................................................ 9
CONSENT OF PARTIES .......................................................................................................................... 9
ADVANTAGES OF LOK – ADALAT ................................................................................................... 10
DISADVANTAGES OF LOK – ADALAT ............................................................................................. 11
CONCLUSION ......................................................................................................................................... 12
BIBLIOGRPHY ........................................................................................................................................ 13
WEBLIOGRAPHY................................................................................................................................... 13
INTRODUCTION

The concept of Lok Adalats originated in India during the British Rule to curb the voice of the
people. Now, however this concept has been rejuvenated. It has become very popular amongst
litigants. Studies have showed that it is one of the most efficient and important ADR mechanisms
and most suited to the Indian environment, culture and societal interests. Camps of Lok Adalats
were initially established in Gujarat in March 1982 and now have been extended throughout the
country.
The Lok Adalat originated owing to the failure of the Indian legal system to provide fast, effective,
and affordable justice. The evolution of this movement was a part of the strategy to relieve the
heavy burden on the Courts with cases pending disposal.
Lok Adalats are a blend of all three forms of traditional ADR: arbitration, mediation, and
conciliation. They use conciliation, with elements of arbitration given that decisions are typically
binding, and are an illustration of legal decentralization as conflicts are returned to communities
from whence they originated for local settlement.

CONSTITUTIONAL DIRECTIVES AND LEGISLATIONS

The advent of Legal Services Authorities Act, 1987 gave a statutory status to Lok Adalats, pursuant
to the constitutional mandate in Article 39-A of the Constitution of India1. The Legal service
Authorities Act was enacted to constitute legal services authorities to provide free and competent
legal services to the weaker sections of the society and to organize Lok Adalats to secure that the
operation of the legal system promotes justice on the basis of equal opportunity. The settlement of
disputes by the Panchayats or tribal heads was prevalent since ancient times. When statutory
recognition was given to Lok Adalat, it was specifically provided that the award passed by the Lok
Adalat will have the force of decree of a court which can be executed as a civil court decree.
The Act is a legislative attempt to decongest the Courts and to ensure the decentralization of
justice.

1
The State shall secure that the operation of the legal system promotes justice, on a basis of equal opportunity,
and shall, in particular, provide free legal aid, by suitable legislation or schemes or in any other way, to ensure that
opportunities for securing justice are not denied to any citizen by reason of economic or other disabilities.
Since 1985, Lok Adalats have been exclusively organized for settlement of motor third party
claims, following the initiative of former Chief Justice of India, Shri. P. N. Bhagwati. The
endeavour received a positive response, since both the claimant as well as the Insurance Company
could derive benefits. The increasing number of cases in the Motor Accident Claim Tribunal
(MACT) and the backlog of pending cases pressed the insurer and the judicial system to think
about a quick disposal oriented system such as Lok Adalats/Conciliatory forums. Lok Adalat has
become a Dispute Management Institution. It is an informal system of dispute resolution, devoid
of the procedural wrangles of regular trial. Since the Legal Services Authorities (Amendment) Act
1994 , the Lok Adalat settlement is no longer a voluntary concept. By this Act Lok Adalat has got
statutory character and has been legally recognized. Certain salient features of the Act are
enumerated below:-
Section 19– Central, State, District and Taluk Legal Services Authority has beencreatedwho are
responsible for organizing Lok Adalats at such intervals and place.
Conciliators for Lok Adalat comprise the following: -A sitting or retired judicial officer. other
persons of repute as may be prescribed by the State Government in consultation with the Chief
Justice of High Court.
Section 20: Cases can be referred for consideration of Lok Adalat as under:-
By consent of both the parties to the disputes;
One of the parties makes an application for reference;
Where the Court is satisfied that the matter is an appropriate one to be taken cognizance of by the
Lok Adalat;
Compromise settlement shall be guided by the principles of justice, equity, fair play and other legal
principles;
Where no compromise has been arrived at through conciliation, the matter shall be returned to the
concerned court for disposal in accordance with Law.
ORGANISATION AND STRUCTURE OF LOK ADALATS

Lok Adalats may be organized at such intervals and places and for exercising such jurisdiction and
for such areas as State Authority or District Authority or the Supreme Court Legal Services
Committee or every High Court Legal Services Committee or, as the case may require.2
COMPOSITION3:
Every Lok Adalat constituted for an area shall consist of such number of serving or retired judicial
officers; and any other person.
JURISDICTION:
Lok Adalat has the jurisdiction to determine and to arrive at a compromise or settlement between
the parties to a dispute in respect of any case pending before; or any matter which is falling within
the jurisdiction of, and is not brought before, any court for which the Lok Adalat is organized.
(a)Any case pending before any court
(b)Any case not brought before any court.

PROCEDURE FOLLOWED IN A LOK ADALAT

The Lok Adalat is usually presided over by a sitting or retired judicial official as the chairman with
two other members, a lawyer and a social worker. It has been observed through experience that
cases involving monetary disputes are easily settled through Lok Adalats. Therefore, most motor
road accident disputes are brought to Lok Adalats. The primary condition of the Lok Adalat is that
both parties in dispute should consent to the settlement. It is necessary that the parties involved in
the dispute are whole-heartedly involved in the justice dispensing system and do abide by the
decision given by the Lok Adalat.
There is no court fee. If the case is already filed in the regular court, the fee paid will be refunded
if the dispute is settled at the Lok Adalat. The procedural laws and the Evidence Act are not strictly
followed while assessing the merits of the claim presented to the Lok Adalat. The decision of the

2
Legal Services Authorities Act, 1987; Section 19(1)
3
Legal Services Authorities Act,1987;Section 19 (2)
court is binding on the parties to the dispute and its order is capable of execution through legal
process. No appeal lies against the decision of the court.4
Lok Adalat is very effective in the settlement of money claims. Disputes like partition suits,
damages and matrimonial cases can also be easily settled before Lok Adalat as the scope for
compromise through an approach of give and take is high in these cases. Lok Adalat is indeed a
boon to the litigant public, where they can get their disputes settled fast and free of cost.

POWERS OF LOK ADALAT5

The Powers bestowed on Lok Adalats are as follows:

1. i) It has the power of the Civil Court, under the Code of Civil Procedure, 1908, while trying
a suit, in respect of the following matters:-
2. Power to summon and enforce the attendance of any witness and to examine him/her on
oath. b) Power to enforce the discovery and production of any document.
3. c) Power to receive evidence on affidavits,
4. d) Power for requisitioning of any public record or document or copy thereof or from any
court.
5. e) Such other matters as may be prescribed.
6. ii) Every Lok Adalat shall have the power to specify its own procedure for the
determination of any dispute coming before it.
iii) All proceedings before a Lok Adalat shall be deemed to be judicial proceedings within the
meaning of Sections 193, 219 and 228 of IPC.
iv) Every Lok Adalat shall be deemed to be a Civil Court for the purpose of Sec 195 and Chapter
XXVI of Cr.P.C.

CASES SUITED FOR LOK ADALAT6

Lok Adalats have the competence to deal with the following cases:

4
http://kelsa.nic.in/lokadalat.htm
5
http://www.academia.edu/3296008/Lok_Adalat_System_in_India
6
http://www.academia.edu/3296008/Lok_Adalat_System_in_India
 Compoundable civil, revenue and criminal cases.
 Motor accident cases
 Partition Claims
 Matrimonial and family disputes
 Bonded Labour disputes
 Land acquisition disputes
 Bank’s unpaid loan cases
 Arrears of retirement benefits cases
 Cases which are not under the jurisdiction of any Court.

FINALITY OF LOK ADALAT AWARD7

During the Lok Adalat, the parties agree to abide by the decision of the judge at the Lok Adalat.
However, it has been seen that the same order is challenged on several grounds. In one of the recent
cases, the Supreme Court of India has once again laid to rest all such doubts. In unequivocal terms,
the Court held that the award of the Lok Adalat is as good as the decree of the Court. The award
passed by the Lok Adalat is the decision of the Court itself though arrived at by the simpler method
of conciliation instead of the process of arguments in court.

CONSENT OF PARTIES8

The most important factor to be considered while deciding the cases at the Lok Adalat is the
consent of both the parties. It cannot be forced on any party that the matter has to be decided by
the Lok Adalat. However, once the parties agree that the matter has to be decided by the Lok
Adalat, then any party cannot walk away from the decision of the Lok Adalat. In several instances,
the Supreme Court has held that if there was no consent, the award of the Lok Adalat is not
executable and also if the parties fail to agree to get the dispute resolved through Lok Adalat, the
regular litigation process remains open for the contesting parties.

7
http://jurisonline.in/?p=21380
8
http://jurisonline.in/?p=21380
The Supreme Court has also held that compromise is always bilateral and means mutual
adjustment. Settlement is termination of legal proceedings by mutual consent. If no compromise
can be arrived at, then no order can be passed by the Lok Adalat.

ADVANTAGES OF LOK – ADALAT

1. Lok Adalats are meant for conciliated settlement of disputes outside court which is what
most of our people like if the matter allows for this kind of settlement. There is a fear
among a large number of people about taking disputes to court, not just about delay in
getting justice but also for financial reasons. In fact, one of the reasons for the formation
of Lok Adalat or people’s court is to provide fair and uncomplicated justice to the
financially deprived section of our society. Though government provides legal aids to poor,
there is a fear of monetary loss during the time period which is why most people prefer
Lok Adalats.

2. Family disputes like property acquisition and matrimonial issues are far better and faster
solved by these Lok Adalats in comparison to courts. Though there are family courts for
these matters, people would always prefer settlement outside court and in a fair and just
manner which is delivered well by Lok Adalats. It saves time and expenses and also is
easier for parties to make their claims which is not the case when the matter is in court and
witnesses are afraid of getting involved into legal matters.

3. The number of cases that require jurisdiction is increasing at an alarming rate and let’s
face it – we have far inadequate number of courts and judges in our country than we require
which leads to unnecessary delay even in smaller cases. If more and more people could
understand the significance of Lok Adalats and resort to them for easy litigations, there
would be lesser pending cases in the files gathering dust since years in courts.

4. Lok Adalats can be a decent supplement to the work of courts and could contribute to
justice in a good way only if awareness is increased and people are encouraged to opt for
them. For illiterates and poor there are even more advantages of taking matters to lok
 adalats. Proceedings are conducted faster and in simple arrangements and even in local
languages. They are not strict about procedural laws or Evidence Act and are based more
on merits which makes it “People’s Festival of Justice.”

5. There is no absolute need of advocates by the victim and the convict, who can either
prefer to have their cases pleaded by the lawyer or simply talk to the judge about the matter
directly. This is not a possibility in courts where a third person pleads the case and the
people involved only get a say when their turn comes. To explain their stand directly is an
advantage that makes people’s court very accessible and easy for people.

6. Even if the case is filed in court, the expenses are refunded to the party when the case is
solved by Lok Adalat which is another reason why people should be made more aware of
this litigation system where there is no fee involved. According to justice V V Rao, it will
take another 320 years to clear the pending backlogs in India but if more and more people
take their cases to Lok Adalats, there is a fair chance that this could be achieved earlier.

DISADVANTAGES OF LOK – ADALAT

1. Justice delayed is justice denied but justice hurried is also justice buried. Faster justice
comes with a price of settlement made at the cost of lesser compensation and the petitioner
had no time to claim higher amount which he justly should have got as seen in many cases
after which apex court ordered Lok Adalat to be careful about not impairing the right of
any party involved in the issue. Faster and easier justice must not come with the price of
injustice which is what falls as a disadvantage of Lok Adalat.

2. Not all cases are suitable for lok adalat jurisdiction. Lok adalat is all about settlement and
compromise which is not what every case requires. Most cases in India require punishment and
correctional methods which is not under the dealing of lok adalat. These cases would usually fail
here and would then be recommended to courts. This would only create superfluous deferral in the
legal proceedings, sometimes which could be required as early as possible.
CONCLUSION

The special conditions prevailing in the Indian society require a highly sensitized legal service
which is efficacious for the poor and the down-trodden. The Lok Adalat mechanism is no more an
experiment in the country, it is in fact, a full-proven success that needs to increase its domain and
bring under its realm the several aspects that have been excluded till date.
Lok Adalats can be viewed as an instrument to social change as well. As said by Prof.Menon,”Lok
Adalat has the potential for social reconstruction and legal mobilization for social change. It can
influence the style of administration of justice and the role of the lawyer and judge in it. It can take
law closer to the life of the people and reduce disparity between law in books and law in action.9”
The need for Lok Adalats is aggravated by the huge population of India that creates an
unmanageable burden on the Judiciary system.
To increase the efficiency of the system of Lok Adalats, it is crucial for the public, the lawyers,
the executive and the Judiciary to work in harmony and coordination. The people should be made
aware of the advantages of the Lok Adalats.
The main challenge that lies in the path of the success of Judiciary is the involvement of the masses.
In the existing situation, the resort to Lok Adalats has enabled amicable dispute settlement. The
success of Lok Adalats should indeed be measured by the overall atmosphere generated in the
country, not by the number and nature of Lok Adalat held, cases settled or compensation awarded.
Lok Adalats can be functional at larger levels only if people are willing and aware of its advantages
and if the drawbacks are done away with. More provisions and amendments that could empower
permanent lok adalats is needed if they are to be made supplementary form of litigation for people
who cannot or should not resort to courts.

As PM has suggested involvement of law students and research on this system could go a long
way in encouraging people to get justice the easier and faster way without having to spend any
money. However, we must also keep the drawbacks in mind and people must be informed that
when the situation calls for an appeal in court to get the culprit punished, people must not hesitate
and settle for compensations.

9
Page 134, N.R.Madhava Menon,Lok Adalat: People Program for Speedy Justice,Indian Bar Review, Vol 132
(2),1996
BIBLIOGRPHY

1. Legal Services Authorities Act, 1987

2. Page 11,Indian Council of Arbitration, Vol. XXXXX No. 3, Arbitration & Conciliation
Law , Oct. – Dec. 2001
3. Page 11,Indian Council of Arbitration, Vol. XXXXX No. 3, Arbitration & Conciliation
Law , Oct. – Dec. 2001
4. Arbitration and Conciliation Act, 1996

WEBLIOGRAPHY

1. http://www.adrcentre.in/images/pdfs/LOK_ADALATS_IN_H.P.-%20Final.pdf
2. http://www.academia.edu/3296008/Lok_Adalat_System_in_India
3. http://www.settlementnegotiation.org/adr/
4. http://legal-dictionary.thefreedictionary.com/ombudsman
5. http://lawcommissionofindia.nic.in/alt_dis.pdf