Lok Adalat and Permanent Lok Adalat

Introduction

• Lok Adalat, meaning “People’s Court,” is an informal system aimed at providing quick and affordable dispute resolutions.
• It has roots in India’s ancient traditions and is based on Gandhian principles of peaceful resolution and community involvement. The system makes justice accessible to the marginalized and underprivileged by involving common people in the process.
• Historically, Lok Adalats were part of village-level dispute resolution before formal courts existed in India. These informal systems relied on community leaders for mediation, focusing on compromise and mutual respect. Mahatma Gandhi supported informal justice systems, emphasizing reconciliation over confrontation.
• Lok Adalat is gaining importance due to the backlog in India’s judiciary, which faces delays and high litigation costs. It offers a way for people, especially from weaker economic sections, to access fast and affordable justice.The system is based on voluntary participation, with decisions binding only if both parties agree.
• Lok Adalat is a vital part of the Alternative Dispute Resolution (ADR) system, alongside arbitration and mediation. It offers a more informal and conciliatory approach, focusing on mutual agreements over legal battles.

Lok Adalat: Concept and Evolution

• Lok Adalat’s voluntary nature allows parties to avoid complex legal procedures, making it a more flexible alternative to formal courts.
• The first Lok Adalat session in Gujarat (1982) was a landmark event, signaling the revival of ancient Indian methods of dispute resolution in modern times.
• Initially, Lok Adalats operated without any statutory backing, relying purely on voluntary cooperation between the parties involved.
• With the enactment of the Legal Services Authorities Act, 1987, Lok Adalat was formally recognized and given a legal framework to operate across the country.
• Lok Adalat offers final settlements without appeals, provided both parties agree, thereby reducing the potential for prolonged litigation.
• The growth of Lok Adalats has contributed to a more efficient judicial system by addressing disputes at an early stage, preventing them from escalating to higher courts.
• Lok Adalats have expanded to include National Lok Adalats, held periodically across India to address large numbers of cases in one sitting, enhancing the system’s reach and efficiency.
• The establishment of Permanent Lok Adalats for public utility services has been another step in the evolution, focusing on disputes related to sectors like water, electricity, and transport.
• Lok Adalats are now recognized for their ability to settle compoundable criminal cases, further expanding their scope and utility in India’s justice system.
• The system has gained global recognition as an effective model for informal dispute resolution, reflecting its success in promoting a culture of conciliation and justice for all.

Structure and functioning of Lok Adalat

1. Legal Framework

• The Legal Services Authorities Act, 1987 forms the legal foundation for Lok Adalats in India. The Act ensures free legal aid to economically weaker sections and promotes the resolution of disputes through Lok Adalats.
• Section 19 of the Act specifically deals with the organization of Lok Adalats, outlining the establishment of Lok Adalats at various levels that is at State, District, and Taluk levels.
• Section 20 governs the cognizance of cases by Lok Adalats, stating that they can take up cases pending in courts or at the pre-litigation stage with the consent of both parties.
• Section 21 stipulates that the award made by the Lok Adalat is considered a decree of a civil court and is final and binding on both parties. However, the award is only enforceable if the parties mutually agree to the settlement.
• Section 22 empowers Lok Adalats to function with flexibility and without strict adherence to procedural laws, promoting a more informal and people-friendly dispute resolution process.

2. Types of disputes handled by Lok Adalat

Lok Adalats handle a wide variety of disputes, including:

• Civil cases such as property disputes, family disputes, and contractual issues.
• Motor accident claim cases involving compensation claims.
• Labour disputes, including wrongful termination and wage-related issues.
• Bank recovery cases and disputes related to financial institutions.
• Public utility services disputes under Permanent Lok Adalats, including water, electricity, transport, and postal services.
• Compoundable criminal cases, such as minor criminal offenses where legal compromise is allowed.

3. Jurisdiction of Lok Adalat and limitations

• Lok Adalats have jurisdiction over cases that are either pending in courts or in the pre-litigation stage (as per Section 20).
• There is no monetary ceiling for disputes referred to Lok Adalat, except for Permanent Lok Adalats, which can handle disputes related to public utility services valued up to Rs. 1 crore (as per Section 22C (1)).
• Lok Adalats cannot handle non-compoundable offenses, where compromise is not allowed under the law.
• The decisions are binding only if both parties voluntarily agree to the settlement. If no settlement is reached, the parties have the right to continue the litigation process in regular courts (Section 20(3)).

4. Composition of Lok Adalat

• As per Section 19(2) of the Legal Services Authorities Act, Lok Adalats are composed of:
  • Judicial officers (often retired or sitting judges) who act as the presiding members.
  • Legal professionals such as advocates, lawyers, and mediators who assist in facilitating settlements.
  • Social workers and other respected members of society who participate in the conciliation process, offering guidance and community-based solutions.
• This diverse composition ensures a balanced approach, with legal expertise and community perspectives.

5. Procedure: Non – binding decisions and voluntary participation

• The procedure in Lok Adalat is informal and flexible, without strict adherence to the Civil Procedure Code or Indian Evidence Act (as per Section 22).
• Parties voluntarily participate, with the focus on conciliation and compromise, rather than adversarial confrontation.
• The decisions made by Lok Adalat are non-binding unless both parties mutually accept the settlement terms. Once accepted, the decision becomes binding and enforceable, carrying the same weight as a civil court decree (Section 21).
• If a settlement cannot be reached, the case can be transferred back to the formal court system, without affecting the legal rights of the parties (Section 20(5)).

Permanent Lok Adalat: Key concept and features

• Permanent Lok Adalat (PLA) is a specialized form of Lok Adalat with the aim of resolving disputes related to public utility services before they reach the stage of formal litigation.
• The purpose of PLAs is to ensure speedy, inexpensive, and amicable resolution of disputes, providing an alternative to the lengthy processes in formal courts.
• Unlike traditional Lok Adalats, PLAs have both conciliatory and adjudicatory functions, meaning they not only encourage settlement through compromise but can also issue binding decisions.

1. Establishment under Legal Service Authority Act

• The Permanent Lok Adalat was established through the 2002 amendment to the Legal Services Authorities Act, 1987.
• Section 22B of the Act mandates the formation of PLAs for resolving disputes concerning public utility services.
• These services are critical to daily life, and the establishment of PLAs aims to prevent disruptions by offering quick dispute resolution mechanisms.
• The amendment gives PLAs the authority to settle disputes both at the pre-litigation stage and during the pendency of cases.

2. Public utility services and PLA

PLAs primarily deal with disputes involving public utility services, which include:

• Transport services, including road, rail, and air transport.
• Postal services, including mail delivery and related functions.
• Electricity supply and disputes related to power distribution and billing.
• Water supply, including disputes over connections and billing.
• Other essential services like sanitation, healthcare, and telecommunications.

Permanent Lok Adalat: Legal Framework

1. Mandatory Pre-Litigation process

• Under Section 22C, before any dispute goes to formal litigation, it must first be presented to the Permanent Lok Adalat (PLA) for resolution through negotiation and conciliation.
• This ensures that disputes are addressed at an early stage, encouraging parties to settle through dialogue and mutual agreement, reducing the need for a formal legal process.
• The pre-litigation mechanism helps to prevent cases from clogging the judicial system, offering a quicker, less expensive way of resolving conflicts.
• This process supports an efficient dispute resolution system by resolving issues before they escalate into full-blown court cases.

2. Jurisdiction over disputes valued up to Rs. 1 Crore

• According to Section 22C(1), PLAs have jurisdiction over disputes with claims up to Rs. 1 crore, making them suitable for moderate-scale cases.
• This scope is particularly important for disputes involving public utility services such as water, electricity, and transport.
• By limiting their jurisdiction to cases under Rs. 1 crore, PLAs effectively handle a significant volume of public utility disputes without overwhelming formal courts.
• This mechanism ensures that public services continue to function smoothly without long delays in resolving essential service-related disputes.

3. Decisions are binding with no appeal allowed

• If the conciliation process fails, the PLA can shift to an adjudicatory role and make a binding decision as per Section 22E.
• These decisions are final and binding on both parties, ensuring that the dispute reaches a conclusive resolution without further delay.
• What makes the PLA unique is that there is no provision for appeal, meaning parties cannot contest the decision in any higher court, promoting faster finality in dispute resolution.
• This characteristic reinforces the PLA’s role in reducing prolonged litigation, providing quicker access to justice.

4. Conciliatory and Adjudicatory functions

• PLAs are designed to first facilitate conciliation, allowing parties to negotiate and find a mutually agreeable solution before pursuing litigation.
• If conciliation does not succeed, the PLA transitions into an adjudicatory role, passing a legally binding decision similar to a court order.
• This dual function makes PLAs versatile in handling disputes, as they offer both amicable settlement options and enforceable legal decisions.
• This blend of conciliation and adjudication ensures that disputes are handled in a flexible yet authoritative manner, with the aim of delivering justice quickly and fairly.

Difference between Lok Adalat and Permanent Lok Adalat

Recent trends and development

• Increased Digitalization: With the rise of technology, E-Lok Adalats have gained popularity, allowing virtual dispute resolution through online platforms, especially during the COVID-19 pandemic. This has made Lok Adalats more accessible to people from remote areas.
• National Lok Adalats: Organized periodically across India, these sessions have become a significant tool for clearing a large backlog of cases in a single day, enhancing the efficiency of the legal system.
• Expansion of Permanent Lok Adalats (PLAs): PLAs have seen growing focus, especially in public utility services sectors like water, electricity, and transport, making it easier to resolve disputes in essential services.
• Success in Pre-Litigation Settlements: There has been an increasing emphasis on pre-litigation settlements, where disputes are resolved before formal cases are filed, reducing the burden on formal courts.
• Focus on Marginalized Groups: Recent initiatives aim to ensure better access to justice for economically and socially weaker sections, ensuring they benefit from free legal aid and quicker dispute resolution through Lok Adalats.

Conclusion                

Lok Adalats and Permanent Lok Adalats have become integral components of India’s judicial framework, offering effective, affordable, and timely dispute resolution. Rooted in India’s ancient traditions and Gandhian principles, Lok Adalats provide a more accessible path to justice for marginalized and economically weaker sections, helping to alleviate the burden on the formal judiciary.

The Permanent Lok Adalats, with their focus on public utility services and binding decisions, further enhance this system by addressing essential disputes quickly and decisively.

With recent developments such as digitalization and the rise of e-Lok Adalats, these institutions continue to evolve, becoming even more relevant in modern times. The growing popularity of pre-litigation settlements and the organization of National Lok Adalats reflect their effectiveness in reducing case backlogs. By offering both conciliatory and adjudicatory functions, these forums promote a culture of compromise and mutual resolution while ensuring that justice is delivered efficiently.

The ongoing expansion and modernization of Lok Adalats and Permanent Lok Adalats demonstrate their vital role in making justice accessible to all, fostering a more inclusive and equitable legal system in India.