Systemic Challenges in Dispute Resolution

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Systemic Challenges in Dispute Resolution

Context: Ahead of a National Lok Adalat (NLA) scheduled in Delhi for settling traffic challans, massive public demand overwhelmed the Delhi Traffic Police’s online portal. 

What is the National Lok Adalat (NLA)?

The National Lok Adalat (NLA) is a nationwide forum for the amicable settlement of disputes outside the formal court system. It is one of the most effective Alternative Dispute Resolution (ADR) mechanisms in India. Key features include:

  • Statutory Basis: It is organised under the Legal Services Authorities Act, 1987.
  • Objective: To provide a free, speedy, and voluntary resolution for pending cases as well as those at a pre-litigation stage.
  • Jurisdiction: NLAs have the competence to settle a wide range of cases, including motor accident claims, bank recovery, matrimonial disputes, civil cases, and compoundable criminal cases.
  • Finality of Award: The award (decision) made by a Lok Adalat is final and binding on all parties. It has the same status as a decree of a civil court and is non-appealable in any court of law.
  • No Court Fee: If a matter is referred to a Lok Adalat and is settled, the court fee paid by the party is refunded.

How are its functionaries appointed and removed?

The functionaries of Lok Adalats are not “appointed” in the traditional bureaucratic sense but are constituted by the legal services authorities.

  • Constitution: The State Legal Services Authority (SLSA) or the District Legal Services Authority (DLSA) constituted under the Legal Services Authorities Act, 1987 organises Lok Adalats.
  • Composition: A Lok Adalat bench typically consists of: 
    • A sitting or retired judicial officer.
    • Other persons of repute, such as lawyers, social workers, or members of the community, who are considered fit to be members.
  • Selection of Members: The members (the non-judicial officers) are selected and invited by the organising Legal Services Authority based on their qualifications, experience, and commitment to social service.
  • Tenure: They are constituted for a specific date or event (like the NLA for traffic challans) and are ad-hoc in nature. There is no fixed tenure for members as it is not a permanent post.
  • Removal: Since they are not permanent appointees, the question of formal removal does not arise in the same way. However, the organising authority can decide not to engage a particular member for future Lok Adalats.

What are their powers and functions?

The powers and functions of Lok Adalats are derived from the Legal Services Authorities Act, 1987:

  • Power of Conciliation: The primary function is to facilitate negotiation and persuade the parties to arrive at a mutually agreeable settlement.
  • Jurisdiction: They have the authority to determine and arrive at a compromise or settlement for:
    • Any case pending before any court.
    • Any matter which is at a pre-litigation stage (i.e., a dispute that has not yet been formally filed in a court).
  • Procedural Flexibility: They are not bound by the strict procedural laws of the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. They operate on the principle of natural justice. 
  • Power to Issue Summons: They can issue summons to parties and witnesses, compelling their appearance.
  • Award-Making Power: If a settlement is reached, the Lok Adalat has the power to pass an award based on the compromise. This award is final and conclusive.
  • Non-Adversarial Nature: Their core function is to be non-adversarial, promoting harmony and compromise rather than a win-lose litigation battle.
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