Permanent Lok Adalat Has Power To Decide Dispute In Relation To Public Utility Service In Case Parties Fail To Reach An Agreement: Jharkhand HC
The Jharkhand High Court observed that in case the parties fail to reach an agreement, the Permanent Lok Adalat has power to decide the dispute related to public utility services on merits if the same is not related to any offence.
The Court observed thus in a writ petition preferred by Chairman-cum-Managing Director, National Insurance Co. Ltd. against the judgment of Permanent Lok Adalat.
A Single Bench of Justice Navneet Kumar remarked, “In case the parties to the dispute fail to reach an agreement the Permanent Lok Adalat shall decide the dispute on merits if the dispute is not related to any offence. The Permanent Lok Adalat shall be guided by the principles of natural justice, objectivity, fair play equity and other principles of natural justice in exercise of its jurisdiction either in the process of conciliation and settlement or in deciding a dispute on merit under the Legal Services Authorities Act, 1987 and shall not be bound by the Code of Civil Procedure, 1908 and Indian Evidence Act, 1872.”
Advocate Pratyush Kumar appeared on behalf of the petitioners while none appeared on behalf of the respondents.
Factual Background -
The husband of the claimant obtained a personal accident insurance from the insurance company for a sum of Rs. 3 lakhs. Unfortunately, the husband was gunned to death in 2003, whereafter, an FIR was lodged and post-mortem of the deceased was conducted. On a sudden murder of the deceased, the claimant remained under deep trauma and took time to recover. Besides this, she was suffering from different diseases.
After the recovery, the claimant sent a claim form to the Branch Manager of the Insurance Company and on demand, she sent again the relevant documents relating to the policy. The insurer informed her that since the intimation of her husband’s death was beyond the time limit as per policy condition No.1, her claim was closed as “No Claim”. Being aggrieved, she approached the Permanent Lok Adalat and her claim was allowed. Challenging such judgment, the Insurance Company was before the High Court.
The High Court in the above regard said, “It is well settled from the aforesaid observations of Hon’ble Supreme Court with respect to the jurisdiction and power of Permanent Lok Adalat that a Permanent Lok Adalat constituted under Chapter VI –A of the Legal Services Authorities Act, 1987 vide the Legal Services Authorities (Amendment Act, 2002), has right to decide the dispute which could not be settled by a settlement agreement between the parties and the dispute does not relate to any offence. Such right has been vested in Permanent Lok Adalat with respect to the cases which arise in relation to Public Utility Services such as transport service for the carriage of passenger or goods by air, road or water; postal telegraph or telephone services; supply of power, light or water to the public by any establishment; system of public conservancy or sanitation; service in hospital or dispensary; or insurance service etc. need to be settled urgently so that people get justice without delay.”
The Court added that at a pre-litigation stage, such power has been vested in Permanent Lok Adalat and apparently, such power and jurisdiction has been vested in Permanent Lok Adalat with an object that most of the petty cases which ought not to go to the regular Courts would be settled at the pre-litigation stage itself which would result in reducing the workload of the regular Courts to a great extent.
“Provisions of Section 22-C provides that any party to a dispute may, before the dispute is brought before any Court, make an application to the Permanent Lok Adalat for settlement of dispute whereupon it appears to the Permanent Lok Adalat that there exists elements of a settlement, which may be acceptable to the parties, it shall formulate the terms of a possible settlement and submit them to the parties for their observations and in case the parties reach an agreement, the Permanent Lok Adalat shall pass an award in terms thereof”, it noted.
The Court concluded that the Permanent Lok Adalat has decided the dispute on merit when the conciliation and settlement between the parties has failed and therefore, it has rightly exercised its jurisdiction.
Accordingly, the High Court dismissed the petition and upheld the impugned judgment.
Cause Title- The Chairman-cum-Managing Director, National Insurance Co., Ltd. 3, Middletone Street, Kolkata & Ors. v. Kisha Devi & Ors.
