Matters Referred To Lok Adalat Must Return To Court For Disposal If No Compromise is Reached: Gujarat High Court

The Court said that the work of Lok Adalat is only to dispose of cases where the settlement has arrived.

The Court was hearing a Criminal Appeal filed challenging the judgment and order of acquittal passed by the Magistrate while sitting in Lok Adalat jurisdiction in Criminal Case dismissing the complaint for non-prosecution.

The bench of Justice M.K. Thakker observed, “it appears that the matters which are referred to the Lok Adalat for disposal where settlement or compromise arrived between the parties, however, in the event when compromise is not arrived, then it should be referred to the court as provided under Section 20(5) of the Legal Service Authority Act, for disposal in accordance with law. The work of Lok Adalat is only to dispose of the case where the settlement is arrived and as in the instant case there is no settlement arrived between the parties and matter was disposed of by the learned court while sitting in Lok Adalat by exercising the power under section 256 of Cr.P.C…”

Advocate Devansh Kakkad appeared for the Appellant and Advocate Monarch Pandya appeared for the Respondent.

Brief Facts-

The complainant alleged that, upon the request of the respondent-accused he lent ₹10L but the cheque issued by him for repayment was dishonoured due to "insufficient funds." After following the procedure under the N.I. Act, the complainant filed a Criminal Case before the Additional Chief Judicial Magistrate. Summons were issued but the trial Court dismissed the complaint while sitting in Lok Adalat, recording the absence of the complainant. Dismissal of the said case is challenged in the present Criminal Appeal.

The Court mentioned the decision in Estate Officer Vs. Colonel H.V. Mankotia reported in (2022) 12 SCC 609 and quoted, “jurisdiction of the Lok Adalat would be to determine and to arrive at a compromise or a settlement between the parties to a dispute and once the aforesaid settlement / compromise fails and no compromise or settlement could be arrived at between the parties, the Lok Adalat has to return the case to the Court from which the reference has been received for disposal in accordance with law and in any case, the Lok Adalat has no jurisdiction at all to decide the matter on meris once it is found that compromise or settlement could not be arrived at between the parties.”

Accordingly, the Court allowed the Appeal.

Cause Title: Satishbhai Shantilal Mehta v. State of Gujarat (Neutral Citation: 2024:GUJHC:49963)

Appearance:

Appellant: Adv. Devansh Kakkad

Respondent: Adv. Monarch Pandya, Adv. PM Dave and APP MH Bhatt

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