‘Awards of Lok Adalat are not independent verdict, should strive to function as conciliators and have no jurisdiction to try policy matters’: Orissa HC

Orissa High Court

Orissa High Court: In an application under Articles 226 and 227 of the Constitution of India challenging the award by the Chairman, permanent Lok Adalat (PSU), Balangir, wherein, he Station Manager, Railway Station, Balangir Town was directed to move before the authority concerned and release funds for coach indication board, Dr. S.K. Panigrahi, J.*, allowed the petition and quashed the impugned award, holding that the Permanent Lok Adalat have no jurisdiction to try policy matters, and that the “award” of Lok Adalat does not mean any independent verdict or opinion arrived by any decision-making process.

Background

Respondent-advocates of Balangir Bar Association filed and application under Section 22-G of the Legal services Authorities Act, 1987 praying for issuance of direction for the Station Manager, Railway Station, Balangir Town (petitioners) to install Coach Indication Boards at Titilagarh, Balangir Railway Station. As its absence was causing inconvenience to the general public.

The petitioner contended that that the relief claimed were pertaining to policy matters which are decided by the Railway Board and the Ministry of Railways. Hence, the Zonal Headquarters, Divisional Headquarters and the Station Manager were not competent parties in such matters and the reliefs claimed and passed by award impugned could not be implemented.

The Lok Adalat in the impugned award directed the petitioner to move to the railway authority concerned to release funds within two months for coach indication board.

Analysis and Decision

The Court said that the said issue is purely of public domain which cannot be decided by the Lok Adalat. The Court relied on LIC v. Suresh Kumar, (2011) 7 SCC 491 and State of Punjab v. Jalour Singh, (2008) 2 SCC 660 wherein, it was observed that “permanent Lok Adalat is not a regular court authorized to adjudicate the disputes between the parties on merits” and that “their function relates purely to conciliation matters.” It was also laid down that “no Lok Adalat has the power to “hear” parties to adjudicate cases as a court does. It discusses the subject-matter with the parties and persuades them to arrive at a just settlement. In their conciliatory role, the Lok Adalats are guided by the principles of justice, equity and fair play.” The Court said that “award” of the Lok Adalat does not mean any independent verdict or opinion arrived at by any decision-making process and explained that making of the award is merely an administrative act of incorporating the terms of settlement or compromise agreed by parties in the presence of the Lok Adalat, in the form of an executable order under the signature and seal of the Lok Adalat. The Court also reiterated that the Lok Adalats should resist from playing the role of regular Judges and should constantly strive to function as conciliators.

Thus, acceding to the submissions of the petitioner that Lok Adalat have no jurisdiction to try policy matters and such matters are to be only decided by the Supreme Court or the High Courts under Article 32 and 226, respectively, the Court quashed the award passed by the Permanent Lok Adalat.

[Station Manager, Railway Station, Balangir Town v. Chairman, Permanent Lok Adalat (PSU), Balangir, 2024 SCC OnLine Ori 1649, Decided on 25-06-24]

*Judgment Authored by: Justice Dr. S.K. Panigrahi


Advocates who appeared in this case :

Advocated for petitioner: CGC B.K. Padhi

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