Wednesday, 13 January 2021

Lok Adalat

Code of Civil Procedure 

Lok Adalat:

So far as procedure governing the Lok Adalat is concerned, it would be as provided under the provisions of Legal Service Authorities Act 1987 (For short LSA Act). Lok Adalat earlier did not have the statutory backing. Section 20 of LSA Act provides for cognizance of causes by Lok Adalat. The decision taken by the Lok Adalat would be deemed to be a decree of the civil court and executable by the court having jurisdiction. As per the provisions of Section 20 of the LSA Act, in case the party is agreed and one of them makes an application to the court and the Court is satisfied that it is a fit case for reference to Lok Adalat, the court would refer the matter to the Lok Adalat which shall decide it and the award so made by the Lok Adalat would be a decree of civil court, as provided under Section 21 of the LSA Act. Section 22 D of LSA Act provides that Lok Adalat will not follow the complicated procedure prescribed under the Code of Civil Procedure or Evidence Act and it may adopt any fair procedure and observe the principles of natural justice. Section 22 E of LSA Act provides that the Award so made by the Lok Adalat shall be final and executed by the civil court having jurisdiction over the matter.

Judgment:

In State of Punjab & Anr. V. Jalour Singh & Ors., (2008) 2 SCC 660, the Hon’ble Court considered the scope of Section 89 and the provisions of Sections 19 to 22 of the Legal Services Authorities Act, 1987 and held that the function of the Lok Adalat relate purely to conciliation and its order must be based on compromise or settlement between the parties. The Lok Adalat cannot enter into an adversarial adjudication akin to a Court of law. Any award of the Lok Adalat not based on a compromise or settlement between the parties would be void.


Code of Civil Procedure 

CPC Section 89. Settlement of disputes outside the Court.

Order 10 Rule 1. Ascertainment whether allegations in pleadings are admitted or denied.

Order 10 Rule 1A. Direction of the court to opt for any one mode of alternative dispute resolution.

Order 10 Rule 1B. Appearance before the conciliatory forum or authority.

Order 10 Rule 1C. Appearance before the court consequent to the failure of efforts of conciliation.

Reference: http://www.nja.nic.in/16%20CPC.pdf

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Arbitration and Conciliation

Code of Civil Procedure 


Arbitration and Conciliation:

The arbitration and conciliation referred to in Section 89 must be those other than governed by the agreement of the parties which can be dealt with under the provisions of Arbitration and Conciliation Act 1996 (hereinafter called the Act 1996). In case the matters are referred to arbitration and conciliation under Section 89, procedure prescribed under the Act 1996 would apply. Section 5 of the Act 1996 provides for non-intervention by judiciary except as provided under Section 9 of the Act 1996 for grant of interim relief. Section 8 of the Act 1996 refers to the power of reference to arbitration. Section 19 of the Act 1996 provides for non-application of complicated rules of Code of Civil Procedure and Evidence Act. Section 61 of the Act 1996 deals with scope and application for conciliation. Section 70 of the Act 1996 puts an embargo not to disclose the information received by the conciliator from either of the parties. In case the proceedings before him fail, Section 81 of the Act 1996 provides that information or statements made by the parties or their agent during the proceedings of conciliation shall not be admissible in evidence.


Code of Civil Procedure 

CPC Section 89. Settlement of disputes outside the Court.

Order 10 Rule 1. Ascertainment whether allegations in pleadings are admitted or denied.


Reference: http://www.nja.nic.in/16%20CPC.pdf

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Appearance before the court consequent to the failure of efforts of conciliation: O10 R1C

Code of Civil Procedure 

1[1C. Appearance before the court consequent to the failure of efforts of conciliation.—Where a suit is referred under rule 1A, and the presiding officer of conciliation forum or authority is satisfied that it would not be proper in the interest of justice to proceed with the matter further, then, it shall refer the matter again to the court and direct the parties to appear before the court on the date fixed by it.]

Note: 1. Ins. by Act 46 of 1999, s. 20 (w.e.f. 1-7-2002).

Part in Red is original provisions from CPC reproduced here for reference.

Code of Civil Procedure 


Provisions for working of Section 89:

In order to facilitate the working of alternative forums, as provided under Section 89 of the Code, the provision contained in Order 10 Rule 1C provides for the reference back to the Court consequent to failure of efforts of conciliation.



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Appearance before the conciliatory forum or authority: O10 R1B

Code of Civil Procedure 

1[1B. Appearance before the conciliatory forum or authority.—Where a suit is referred under rule 1A, the parties shall appear before such forum or authority for conciliation of the suit.]

Note: 1. Ins. by Act 46 of 1999, s. 20 (w.e.f. 1-7-2002).

Part in Red is original provisions from CPC reproduced here for reference.

Code of Civil Procedure 


Provisions for working of Section 89:

In order to facilitate the working of alternative forums, as provided under Section 89 of the Code, the provision contained in Order 10 Rule 1B provides for a procedure for appearance etc. when the matter is referred to the conciliatory forum. 



Direction of the court to opt for any one mode of alternative dispute resolution: O10 R1A

Code of Civil Procedure 

1[1A. Direction of the court to opt for any one mode of alternative dispute resolution.—After recording the admissions and denials, the court shall direct the parties to the suit to opt either mode of the settlement outside the court as specified in sub-section (1) of section 89. On the option of the parties, the court shall fix the date of appearance before such forum or authority as may be opted by the parties.]

Note: 1. Ins. by Act 46 of 1999, s. 20 (w.e.f. 1-7-2002).

Part in Red is original provisions from CPC reproduced here for reference.

Code of Civil Procedure 


Provisions for working of Section 89:

In order to facilitate the working of alternative forums, as provided under Section 89 of the Code, the provision contained in Order 10 Rule 1A provides for a direction of the Court to the party to opt for any one mode of alternative dispute resolution. 



Mediation

Code of Civil Procedure 

 

Mediation- It provides for the philosophy that parties must mediate and not litigate. The matter may be referred to a skilled mediator who should be a man of integrity. The mediator shall not record reasons for failure of proceedings nor such reasoning shall be communicated to the Court nor the Court would make an attempt to know the reasons for failure.


Code of Civil Procedure 

CPC Section 89. Settlement of disputes outside the Court.

Order 10 Rule 1. Ascertainment whether allegations in pleadings are admitted or denied.


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Salem Advocate Bar Association, Tamil Nadu V. Union of India

Code of Civil Procedure

Section 80. Notice. 

Purpose of Giving Notice:

Purpose of giving notice has been explained by the Apex Court in Salem Advocate Bar Association, Tamil Nadu V. Union of India, AIR 2005 SC 3353 observing as under:- “Section 80 (1) of the Code requires prior notice of two months to be served on the Government as a condition for filing a suit except when there is urgency for interim order in which case the Court may not insist on the rigid rule of prior notice. The two month’s period has been provided for so that the Government shall examine the claim put up in the notice and has sufficient time to send a suitable reply. The underlying object is to curtail the litigation. The object also is to curtail the area of dispute and controversy. Similar provisions also exist in various other legislations as well. Wherever the statutory provision requires service of notice as a condition precedent for filing of suit and prescribed period therefore, it is not only necessary for the Governments or departments or other statutory bodies to send a reply to such a notice but it is further necessary to properly deal with all material points and issues raised in the notice. The Governments, government departments or statutory authorities are defendants in large number of suits pending in various courts in the country. Judicial notice can be taken of the fact that in large number of cases either the notice is not replied or in few cases where reply is sent, it is generally vague and evasive. The result is that the object underlying Section 80 of the Code and similar provisions gets defeated. It not only gives rise to avoidable litigation but also results in heavy expense and cost to the exchequer as well. Proper reply can result in reduction of litigation between State and the citizens. In case proper reply is sent either the claim in the notice may be admitted or area of controversy curtailed or the citizen may be satisfied on knowing the stand of the State. There is no accountability in the Government, Central or State or the statutory authorities in violating the spirit and object of Section 80.

These provisions cast an implied duty on all concerned Governments and States and statutory authorities to send appropriate reply to such notices. Having regard to the existing state of affairs, we direct all concerned Governments, Central or State or other authorities, whenever any statute requires service of notice as a condition precedent for filing of suit or other proceedings against it, to nominate, within a period of three months, an officer who shall be made responsible to ensure that replies to notices under Section 80 or similar provisions are sent within the period stipulated in a particular legislation. The replies shall be sent after due application of mind. Despite such nomination, if the Court finds that either the notice has not been replied or reply is evasive and vague and has been sent without proper application of mind, the Court shall ordinarily award heavy cost against the Government and direct it to take appropriate action against the concerned Officer including recovery of costs from him.”

Further, in computing the period of limitation, the period of notice would be mandatorily excluded provided notice is given within limitation period.


Reference: http://www.nja.nic.in/16%20CPC.pdf

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