LOK ADALAT - POLITY

News: Loan recovery via Lok Adalats, IBC falls in FY21; banks report fewer frauds

 

What's in the news?

       Loan recovery through various channels, most notably Lok Adalats, witnessed a sizable decline in the cases referred for resolution during 2020-21, the Reserve Bank of India (RBI) said.

 

Lok Adalat:

About the Lok Adalat:

       The term ‘Lok Adalat’ means ‘People’s Court’ and is based on Gandhian principles.

       As per the Supreme Court, it is an old form of adjudicating system prevalent in ancient India and its validity has not been taken away even in the modern days too.

       It is one of the components of the Alternative Dispute Resolution (ADR) system and delivers informal, cheap and expeditious justice to the common people.

       The first Lok Adalat camp was organized in Gujarat in 1982 as a voluntary and conciliatory agency without any statutory backing for its decisions.

       In view of its growing popularity over time, it was given statutory status under the Legal Services Authorities Act, 1987.

       The Act makes the provisions relating to the organization and functioning of the Lok Adalats.

 

Composition:

       The State/District Legal Services Authority, the Supreme Court/High Court/Taluk Legal Services Committee, or the Supreme Court/High Court/Taluk Legal Services Committee may organize Lok Adalats at such intervals and locations as it sees fit.

       Every Lok Adalat organized for a particular area should include the number of serving or retired judicial officers and other persons of the area as may be specified by the agency organizing such Lok Adalat.

       A Lok Adalat is usually chaired by a judicial officer, with members including a lawyer (advocate) and a social worker.

       National legal service authority (NALSA) was established by the Legal Services Authorities Act of 1987, which took effect on November 9, 1995, to create a state wide consistent network for delivering free and competent legal services to the poor.

 

Jurisdiction:

A Lok Adalat shall have jurisdiction to determine and reach an agreement or settlement between the parties to a dispute in the following areas:

       Any case pending before any court.

       Any matter which falls within the jurisdiction of any court and is not brought before such court.

       Any case pending before the court can be referred to the Lok Adalat for settlement if:

       The parties thereof agree to settle the dispute in the Lok Adalats

       One of the parties thereof makes an application to the court, for referring the case to the Lok Adalat.

       The court is satisfied that the matter is an appropriate one to be taken cognizance of by the Lok Adalat.

       In the case of pre-litigation dispute, the matter can be referred by the agency organizing the Lok Adalats, on receipt of an application from any one of the parties to the dispute.

       The various matters such as matrimonial/family disputes, criminal (compoundable offenses) cases, land acquisition cases, labor disputes, bank recovery cases, etc.

       The offenses which are non-compoundable under any law fall outside the purview of the Lok Adalat.

 

Power of Lok Adalat:

       Under the Code of Civil Procedure (1908), the Lok Adalat will have the same powers as a Civil Court.

       A Lok Adalat shall have the authority to define its own method for resolving any dispute that comes before it.

       Every Lok Adalat shall be regarded to be a Civil Court for the purposes of the Code of Criminal Procedure (1860), and all procedures before a Lok Adalat shall be considered to be judicial proceedings within the meaning of the Indian Penal Code (1973).

       Under the Legal Services Authorities Act, 1987, The decision of the Lok Adalats is considered a civil court verdict and is binding on all parties.

       There is no provision for an appeal if the parties are dissatisfied with the verdict of Lok Adalat.

 

Benefits:

       No court fees.

       Speedy trial.

       Procedural flexibility.

       Parties can directly interact with the judge through their counsel.

       The award given by the Lok Adalat is binding on the parties and it has the status of a decree of a civil court and it is no-appealable, which does not cause the delay in the settlement of disputes finally.

 

Types of Lok Adalat:

 

1. National Lok Adalat:

       National Lok adalats are held at regular intervals, with Lok adalats held across the country on a single day.

       Since 2015, National Lok Adalat has been held on a specific matter every month.

 

2. Permanent Lok Adalat:

       In 2002, the Legal Services Authorities Act, 1987 was amended to permit for the establishment of Permanent Lok Adalats to handle issues involving public utility services such as transportation, telegraph, etc.

       It shall be chaired by a district judge or additional district judge who is or has been a district judge or has held a judicial office higher in rank than that of the district judge, as well as two other persons with adequate experience in public utility services.

       It does not have jurisdiction over any situation involving an offence that is not punishable by law.

       The Permanent Lok Adalat's judgments are final and binding on all parties involved.

 

3. Mobile Lok Adalat:

       Mobile Lok Adalats are also organized in various parts of the country.

       Which moves from one area to another to resolve disputes in order to make the process of resolving disputes easier.