What Is a Lok Adalat and How Can It Settle Your Case?

A Lok Adalat, or "people's court", settles disputes by agreement between the parties. It works under the Legal Services Authorities Act, 1987. There is no court fee, and if a pending case is settled the court fee already paid is refunded. The award is final and binding, and no appeal lies against it.

Indian courts carry a heavy load of pending cases. Lok Adalats offer a way out for disputes that both sides would rather settle than fight for years. Here is what you need to know.

What kinds of cases go to a Lok Adalat?

• Motor accident compensation claims.
• Bank recovery and loan disputes, including pre-litigation matters.
• Family disputes such as maintenance, other than divorce.
• Electricity, water and telephone bill disputes.
• Cheque bounce cases under the Negotiable Instruments Act.
• Land acquisition compensation and revenue matters.
• Compoundable criminal offences, which the law allows parties to settle.

Non-compoundable criminal offences, which are serious crimes the State prosecutes regardless of the parties' wishes, cannot be settled in a Lok Adalat.

How is a case referred to a Lok Adalat?

There are two routes. A pending case can be referred by the court if both parties agree, or if one party applies and the court is satisfied that there is a chance of settlement. A pre-litigation dispute, one not yet filed in court, can be brought directly to the legal services authority, which notifies the other side and places the matter before the Lok Adalat.

Who decides the case?

A Lok Adalat bench usually has a serving or retired judicial officer and one or two other members, such as a lawyer or a social worker. They do not decide the case on evidence like a trial court. They help the parties understand each other's positions and reach a fair compromise.

What happens when a settlement is reached?

The terms are recorded and signed by the parties. Under Section 21 of the Act, the award is deemed to be a decree of a civil court. It is final and binding on all parties, and no appeal lies against it. If a pending case is settled, the court fee paid is refunded under the court fee law.

If there is no settlement, nothing is lost. The case goes back to the court where it was pending, and the matter continues from where it stood.

What are National and Permanent Lok Adalats?

National Lok Adalats are held on the same day across the country, on dates announced by NALSA through the year. Thousands of benches sit simultaneously in district and taluk courts.

Permanent Lok Adalats, set up under Chapter VI-A of the Act, deal with disputes relating to public utility services such as transport, postal and telecom services, electricity, water, hospitals and insurance. Unlike ordinary Lok Adalats, a Permanent Lok Adalat can decide the dispute on merits if the parties do not settle, within its pecuniary limit.

How should you prepare?

1. Check the date of the next Lok Adalat with your District Legal Services Authority.
2. Apply to have your case listed, through your lawyer or directly.
3. Bring all documents: summons, bills, loan papers, the FIR in a motor accident case, medical bills.
4. Decide your bottom line in advance. Know what settlement you can accept.
5. Read the settlement terms carefully before signing. Once signed, the award is final.

Sources

• National Legal Services Authority: Lok Adalat schedules and information.
• India Code: the Legal Services Authorities Act, 1987.

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