March 8, 2002
‘7’
EMPOWERING LOK ADALATS
The Government has decided to amend the Legal Services Authorities Act, 1987 in order to remove the existing drawback by adding a new chapter, which will facilitate setting up of permanent Lok Adalats for providing compulsory pre-litigative mechanism for conciliation and settlement of cases relating to public utility services. An amendment bill to this effect has already been approved by the Union Cabinet and is to be introduced in the current Budget Session of Parliament.
At present, Lok Adalats can settle disputes only on the basis of compromise or settlement among the parties. If the parties do not arrive at a settlement, the cases are either returned to the court of law or are the parties advised to seek remedy in a court of law.
Under the proposed amendment, the National Legal Services Authority (NALSA) or the State Legal Services Authority, as the case may be, may establish permanent Lok Adalats at such places and in such numbers as may be expedient to enable the Lok Adalats to exercise its jurisdiction in respect of one or more public utility services as necessary from time to time.
The permanent Lok Adalats would have jurisdiction over public utility services like transport covering air, road and water, postal, telegraph or telephone, power, water, sanitation, hospitals and insurance. This will take care of the people at the cutting edge of public administration.
It has also been proposed that the award made by the Lok Adalat shall be final, binding and not questioned in any original suit, application or execution proceeding. The jurisdiction of the Lok Adalats would, however, be limited to cases upto a monetary value of Rs. 10 lakhs.
The proposed amendment in the Legal Services Authorities Act, 1987 is intended to decongest courts considerably.