LexMADHYA PRADESH STATE LEGAL SERVICES AUTHORITY versus PRATEEK JAIN & ANR.
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[2014] 7 S.C.R. 743 MADHYA PRADESH STATE LEGAL SERVICES AUTHORITY V. PRATEEK JAIN & ANR. (Civil Appeal No. 8614 OF 2014) SEPTEMBER, 10, 2014 [J. CHELAMESWAR AND A.K. SIKRI, JJ.] ALTERNATIVE DISPUTES REDRESSAL: Lok Adalats - Object and advantages - Discussed - Code of Civil Procedure, 1908 - s.89 - Legal Service Authority Act, 1987 - s.19. Lok Adalats - Applicability of directions/guidelines given A B c in *Damodar S. Prabhu case in cases which are resolved/ D settled in Lok Adalats - Dishonour of cheque dispute - Settlement of dispute - Application by parties for referring the matter to Lok Ada/at - Held: If the matter is settled between the parties then it need not be referred to Lok Ada/at - Tendency of sending settled matters to Lok Ada/at deprecated E - When a case is decided in Lok Ada/at, the requirement of guidelines contained in *Damodar S. Prabhu should normally not be dispensed with - However, if there is a special/specific reason to deviate therefrom, .the Court is not remediless as --.;)'·· *Damodar S. Prabhu its~l.~ has given discretion to the F concerned Court to reduce;~h.fJ :~~ts •. with regard to specific facts and circumstances of the d~~e. while recording reasons in writing about such variance,.~ th matters where the case has to be decided/settled in the LokAdalat, if the Court finds that it is a result of positive attitude of the parties, in such G appropriate cases, the Court can always reduce the costs by imposing minimal costs or even waive the same - For that, it would be for the parties, particularly the accused person, to make out a plausible c~se for the waiver/reduction of costs ~3 H 744 SUPREME COUR~ REPORTS [2014] 7 S.C.R. A and to convince the concerned Court about the same - This course of action would strike a balance between the two competing .but equally important interests, namely, achieving the objectives delineated in *Damodar S. Prabhu on the one hand and the public interest which is sought to be achieved 8 l:)y encouraging settlements/resolution of case through Lok Ada/ats - Negotiable Instruments Act, 1881 - s. 147. Respondent no. 1 was the complainant of dishonour of cheque against respondent no. 2. The matter reached before the Additional Session Judge in the form of C criminal appeal and during the pendency of appeal, a joint application was filed by both the parties under Section 147 of the Negotiable Instruments Act, 1881 stating that a compromise had taken place between them With mu'tual consent and that respondent no. 1 did not D want to proceed against respondent no. 2 and wanted the appeal to be disposed of on the basis of compromise. On their application, the matter was referred to Lok Adalat. However, since the deposit was not made in terms of the direction given in *Damodar S. Pradhu, the Presiding E Officer in the Lok Adalat did not give imprimatur to the said settlement. Respondent no. 2 filed a writ petition before the High Court which was dismissed. The question for consideration in the instant appeal F . was whether the directions/guidelines given in *Damodar S. Prabhu case are inapplicable in cases which are resolved/settled in Lok Adalats. Disposing of the appeal, the court G HELD: 1. No doubt, the purpose and objective with which Lok Adalats have been constituted under Section 19 of the Legal Service Authority Act, 1987 i$ to have speedy resolution of the disputes through these Lok Adalats, with added advantage of cutting the cost of H litigation and avoiding further appeals. The advent of the M.P. STATE LEGAL SERVICES AUTHORITY v. 745 PRATEEK JAIN 1987 Act gave a statuto!'Y status to Lok Adalats, pursuant A to the constitutional mandate in Article 39-A of the Constitution of India. It is an Act to constitute legal services authorities to provide free and competent legal services to the weaker sections of the society to ensure that opportunities for securing justice are not denied to B any citizen by reason of economic or- other disabilities, and to organize Lok Adalats to secure·that the operation of the legal system promotes justice on a basis of equal opportunity. In fact, the concept of Lok Adalat is an innovative Indian contribution to the world jurisprudence. c It is a new form of the justice dispensation system and has largely succeeded in providing a supplementary forum to the victims for settlement of their disputes. This system-is based on Gandhian prin
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