Lok Adalats can settle matter by mutual compromise

New Delhi, Oct 4: Demarcating the jurisdiction of Lok Adalats in the country, the Supreme Court has held that Lok Adalat can settle the matter only when all the concerned parties are willing to compromise in the dispute.

The ruling was handed down on an appeal filed by the state of Punjab against the judgment of Punjab and Haryana High Court which had upheld the order of Lok Adalat ordering payment of interest at 12 per cent per annum to the respondent Ganpat Raj for arrears of payment of pension, GPF and other retirement benefits to him.

Lok Adalat had passed the order despite opposition by the state of Punjab to the proceedings being transferred to Lok Adalat.

The appeal of the state government filed in the high court against the order of Lok Adalat was dismissed as misconceived.

The high court, however, accepted that the disposal by the Lok Adalat was not the proper course, yet it was held that on merits, respondent was entitled to relief.

A bench comprising Justices Arijit Pasayat and Lokeshwar Singh Panta while setting aside the impugned judgment of the high court observed, ''A compromise is always bilateral and means mutual adjustment. ''Settlement'' is termination of legal proceedings by mutual consent. The case at hand did not involve compromise or settlement and could not have been disposed of by Lok Adalat. If no compromise or settlement is or could be arrived at , no order can be passed by the Lok Adalat. Therefore, the disposal of the writ petition filed by the respondent is clearly impermissible.'' The Supreme Court while restoring the writ petition filed by the respondent requested the high court to dispose of the same within a period of three months from the date of receipt of this order.

Lok Adalat had passed the order on Feb. 4,2003 under Section 20(3) of the Legal Services Authorities Act,1987.

UNI