Lok Adalat — The People's Court

Statute: Legal Services Authorities Act, 1987 (Sections 19–22) Landmark Case: State of Punjab v. Jalour Singh (2008) 2 SCC 660 — Lok Adalat award is based on compromise; it cannot adjudicate without the consent of both parties.

Meaning

Lok Adalat (literally “People’s Court”) is a statutory forum organised under the Legal Services Authorities Act, 1987 where disputes are settled amicably by consensus. Its award has the same force as a decree of a civil court and is not appealable.

Key Features

• Organised by State / District / Taluk Legal Services Authorities.
• Members: a sitting/retired judicial officer + 2 other members (lawyer + social worker).
• No court fee — and if a pending case is settled, the court fee is refunded.
• Award = decree of a civil court (Section 21).
• No appeal against Lok Adalat award (Section 21(2)).
• Can handle: pending cases (referred by court) + pre-litigation matters.
• On criminal side: compoundable offences only.

How Lok Adalat Works — Visual Flow

flowchart TD
    A[Lok Adalat] --> B[Statutory Lok Adalat\nSec 19]
    A --> C[Permanent Lok Adalat\nSec 22B]
    B --> B1[Pending court cases]
    B --> B2[Pre-litigation matters]
    B --> B3[Only settlement\nNo adjudication]
    C --> C1[Public Utility Services only]
    C --> C2[Can adjudicate\nif settlement fails]
    B & C --> Z[Award = Civil Court Decree\nNo Appeal — Sec 21]
    style Z fill:#FFD93D
    style A fill:#4ECDC4,color:#fff

Types of Lok Adalat

1. Statutory Lok Adalat (Section 19)

• Organised periodically by Legal Services Authorities.
• For pending court cases and pre-litigation disputes.
• No adjudicatory power — only facilitates settlement.

2. Permanent Lok Adalat (Section 22B)

• For public utility services (transport, postal, water, electricity, hospital, insurance).
• Has adjudicatory power if conciliation fails — can pass a binding award even without consent.
• Pecuniary limit: up to ₹1 crore (subject to notification).

Jurisdiction

• Civil disputes of all kinds (money, property, family, compensation).
• Compoundable criminal offences (minor assault, cheque dishonour, petty theft).
• NOT applicable: Non-compoundable offences (murder, rape, dacoity).

Effect of Award — Section 21

Section 21(1): Every award of the Lok Adalat shall be deemed to be a decree of a civil court and shall be final and binding on the parties. Section 21(2): No appeal shall lie to any court against the award.

Comparison with Court Decree

Sample Problems (KSLU-style)

Problem 1 — Illegal Earnings in Lok Adalat

(Asked: Dec 2014, June 2019)

A and B together earned ₹10 lakh through smuggling. They quarrel over dividing the money and approach the Lok Adalat. Advise.

Answer (IRAC):

• Issue: Can Lok Adalat settle a dispute arising out of illegal earnings?
• Rule: Section 23, Indian Contract Act, 1872 — any agreement whose object is forbidden by law or against public policy is void. Section 20(2)(ii), Legal Services Authorities Act — Lok Adalat shall not deal with matters relating to non-compoundable offences. Principle: ex turpi causa non oritur actio (no action arises from an illegal cause).
• Analysis: The subject of the dispute is the fruit of a crime. Lok Adalat cannot lend its authority to distribute illegal gains — this would be against public policy. Smuggling is a non-compoundable offence, barring Lok Adalat jurisdiction entirely.
• Conclusion: Lok Adalat cannot entertain this dispute. Any award would be a nullity. The parties should be advised to abandon the claim.

Problem 2 — Challenging a Lok Adalat Award

(Asked: June 2015)

A and B settle a civil dispute in Lok Adalat. An award is passed. Later A is dissatisfied and wants to challenge it. Advise.

Answer (IRAC):

• Issue: Can a Lok Adalat award be challenged in appeal?
• Rule: Section 21(2), LSA Act, 1987 — no appeal shall lie to any court against a Lok Adalat award. However, writ jurisdiction under Articles 226/227 of the Constitution is always available against any quasi-judicial authority. State of Punjab v. Jalour Singh (2008) 2 SCC 660 — a Lok Adalat award is based purely on consensus; if there was no real consent, the award is a nullity and a writ lies.
• Analysis: A regular appeal (first appeal or second appeal) is completely barred by Section 21(2). The only remedy is a writ petition under Article 226/227 — and only on limited grounds such as: no real consent was given, fraud or coercion, or the Lok Adalat exceeded its jurisdiction.
• Conclusion: A cannot file an appeal. His only remedy is a writ petition before the High Court, and only if he can show that the award was passed without genuine consent or was otherwise a nullity.