• Lok Adalat has no jurisdiction to decide the matter on merits once it is found that compromise or settlement could not be reached between the parties, the Supreme Court said.

• The apex court said the provisions of the Legal Services Authorities Act, 1987 make it clear that the jurisdiction of the Lok Adalat would be to determine and to arrive at a compromise or a settlement between the parties to a dispute.

• It said that once the settlement or a compromise fails, the Lok Adalat has to return the case to the court from which the reference has been received for disposal in accordance with the law. 

• The judgment was passed on an appeal filed by the Estate Officer challenging the 2013 order passed by the Madhya Pradesh High Court by which in a Lok Adalat, the members of the Lok Adalat has entered into the merits of the writ petition and has dismissed the case on merits.

• The apex court said the order passed by the Lok Adalat dismissing the writ petition on merits is unsustainable and deserves to be quashed and set aside. 

Lok Adalats

• In order to facilitate alternative methods of dispute resolution, the National Legal Services Authority (NALSA) conducts Lok Adalats.  

• It is a forum where disputes/cases pending in the court of law or at the pre-litigation stage are settled/compromised amicably. 

• Lok Adalats have been given statutory status under the Legal Services Authorities Act, 1987. Under the said Act, the award (decision) made by the Lok Adalats is deemed to be a decree of a civil court and is final and binding on all parties and no appeal lies against such an award before any court of law.

Types of Lok Adalats: 

1) Regular Lok Adalats are organised by the Legal Services Authorities/Committees as per the convenience/discretion of the state/district authorities, for settlement of both pre-litigation and post-litigation cases.

2) National Lok Adalats are conducted quarterly for settlement of cases (both pre-litigation and post-litigation) in all the courts from the Supreme Court of India to the taluk courts on a single day.

3) Permanent Lok Adalats are permanent establishments set up in most of the districts to provide compulsory pre-litigative mechanism for settlement of disputes related to public utility services.

• Mobile Lok Adalats are also organised in various parts of the country, which travel from one location to another to resolve disputes in order to facilitate the resolution of disputes through this mechanism.

• Lok Adalats have also moved to the virtual platform due to the coronavirus pandemic.

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