EXPRESSING concern over lok adalats taking over judicial role, the
Supreme Court has said that the provisions of the Arbitration and
Conciliation Act relating to the conciliators shall be applicable as
guidelines for the effective functioning of such bodies. The apex court
in the meanwhile asked the National Legal Services Authority to issue
an uniform guideline for the effective functioning of lok adalats as an
alternative dispute resolution process across the country.
A bench comprising Justice R V Raveendran and Justice D K Jain said,
“We suggest that the National Legal Services Authority as the apex
body, should issue uniform guidelines for the effective functioning of
the lok adalats. The principles underlying following provisions in the
Arbitration and Conciliation Act, 1996, relating to conciliators, may
also be treated as guidelines to members of Lok Adalats, till uniform
guidelines are issued: Section 67 relating to role of conciliators;
Section 75 relating to confidentiality; and Section 86 relating to
admissibility of evidence in other proceedings.”
The court said, “Thousands of lok adalats are held all over the country
every year. Many members of lok adalats are not judicially trained.
There is no fixed procedure for the lok adalats and each adalat adopts
its own procedure. Different formats are used by different lok adalats
when they settle the matters and make awards”.
“We have come across lok adalats passing ‘orders’, issuing ‘directions'
and even granting declaratory relief, which are purely in the realm of
courts or specified tribunals, that too when there is no settlement. As
an award of a lok adalat is an executable decree, it is necessary for
the lok adalats to have an uniform procedure, prescribed registers and
standardised formats of awards and permanent record of the awards, to
avoid misuse or abuse of the ADR process,” observed the court.
Justice Raveendran writing the verdict for the bench said, “Although
the members of lok adalats have been doing a commendable job, sometime
they tend to act as judges, forgetting that while functioning as
members of lok adalats, they are only statutory conciliators and have
no judicial role. Any overbearing attitude on their part, or any
attempt by them to pressurise or coerce parties to settle matters
before the lok adalat (by implying that if the litigant does not agree
for settlement before the lok adalat, his case will be prejudiced when
heard in court), will bring disrepute to lok adalats as an alternative
dispute resolution process (ADR process) and will also tend to bring
down the trust and confidence of the public in the judiciary”.
The apex court took a strong exception of an award passed by a lok adalat in Kerala.
On May 25, 2007, it had asked the appellants B P Moideen Sevamandir and
Anr to vacate certain buildings on or before July 31, 2007, and further
directed that on such surrender, another portion shall belong to the
appellants. Such an ‘award' could have been made by the Lok Adalat only
when there was a final settlement between the parties, said apex court
allowing the appeals.
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