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K.N. GOVINDAN KUTTY MENON versus C.D. SHAJI

Citation: [2011] 15 S.C.R. 447 · Decided: 28-11-2011 · Supreme Court of India · Bench: P. SATHASIVAM · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2011] 15 (ADDL.) S.C.R. 447 
K.N. GOVINDAN KUTTY MENON 
v. 
C.D. SHAJI 
(Civil Appeal No. 10209 of 2011) 
NOVEMBER 28, 2011 
[P. SATHASIVAM AND J. CHELAMESWAR, JJ.] 
A 
B 
Legal Services Authorities Act, 1987 -
s. 21 -
Interpretation of - When a criminal case filed uls. 138 of the 
Negotiable Instruments Act, referred to by the Magistrate c 
Court to Lok Ada/at is settled by the parties and an· award is 
passed recording the settlement, can it be considered as a 
decree of a civil court and thus executable - Held: In view of 
the unambiguous language of s.21 of the Act, every award of 
the Lok Ada/at shall be deemed to be a decree of a civil court D 
and as such it is executable by that Court - The Act does not 
make out any such distinction between the reference made 
by a civil court ana criminal court - There is no restriction on 
the power
1 of the Lok Ada/at to pass an award based on the 
compromise arrived at between the parties in respect of cases E 
referred to by various Courts (both civil and criminal), 
Tribunals, Family court, Rent Control Court, Consumer 
Redressa/ Forum, Motor Accidents Claims Tribunal and other 
Forums of similar nature - Even if a matter is referred by a 
criminal court u/s.138 of the Negotiable Instruments Act, by 
virtue of the deeming provisions, the award passed by the Lok F 
Ada/at based on a compromise has to be treated as a decree 
capable of execution by a civil court- Negotiable Instruments · 
Act, 1881- s.138. 
An important question as to the interpretation of G 
Section 21 of the Legal Services Authorities Act; 1987 
arose for consideration in the instant appeal. The 
question posed was that when a criminal case filed under 
Section 138 of the· Negotiable Instruments Act, 1881 
447 
H 
448 
SUPREME COURT REPORTS [2011] 15 (ADDL.) S.C.R. 
A referred to by the Magistrate Court to Lok Adalat is settled 
by the parties and an award is passed recording the 
settlement, can it be considered as a decree of a civil 
court and thus executable. 
B 
Allowing the appeal, the Court 
HELD: 1.1. The Legal Services Authorities Act, 1987 
empowers Legal Services Authorities at Lhe District, State 
and National levels, and the different committees to 
organize Lok Adalats to resolve pending and pre-litigation 
c disputes. It provides for permanent Lok Adalats to settle 
disputes involving public utility services. Under the Act, 
"legal services" have a meaning that includes rendering 
of service in the conduct of any court-annexed 
proceedings or proceedings before any authority, tribunal 
o and so on, and giving advice on legal matters. The Act 
provides for a machinery to ensure access to justice to 
all through the institutions of legal services authorities 
and committees. These\institutions are manned by 
Judges and judicial officers. Parliament entrusted the 
E judiciary with the task of implementing the provisions of 
the Act. [Para 7] [454-G-H; 455-A-E] 
1.2. Section 21 of the Act contemplates a deeming 
provision, hence, it is a legal fiction that the "award" of 
the Lok Adalat is a decree of a civil court. In the case on 
F hand, the Courts below erred in holding that only if the 
matter was one which was referred by a civil court it could 
be a decree and if the matter was referred by a criminal 
court it will only be an order of the criminal court and not 
a decree under Section 21 of the Act. The Act does not 
G make out any such distinction between the reference 
made by a civil court and criminal court. There is no 
restriction on the· power of Lok Adalat to pass an award 
based on the compromise arrived at between the parties 
in a case referred by a criminal court under Section 138 
H of the N.I. Act, and by virtue of the deeming provision it 
K.N. GOVINDAN KUTTY MENON v. C.D. SHAJI 
449 
has to be treated as a decre~ capable of execution by a 
A 
civil court. [Paras 8, 14] [45.,-F; 460-G-H; 461-A-B] 
1.3. The "award" of the Lok Adalat does not mean any 
independent verdict or opinion arrived at by any decision 
making process. The making of the award is merely an 
8 
administrative act of incorporating the terms of settlement 
or compromise agreed by the parties in the presence of 
the Lok Adalat, in the form of an executable order under 
the signature and seal of the Lok Adalat. [Para 15] [461-
C-D] 
c 
1.4. In conclusion, the following propositions 
emerge: 
a) In view of the unambiguous language of Section 
21 of the Act, every award of the Lok Adalat shall be o 
cleeme

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