Lok Adalat
Also called: People's court, Permanent Lok Adalat
A forum organised by a legal services authority under Chapter VI of the Legal Services Authorities Act, 1987 to settle pending or pre-litigation disputes by compromise. Its award is deemed a decree and is final.
Explained
Section 2(1)(d) of the Legal Services Authorities Act, 1987 defines a Lok Adalat as a Lok Adalat organised under Chapter VI. Under Section 19 a State Authority, District Authority, the Supreme Court Legal Services Committee, a High Court Legal Services Committee or a Taluk Legal Services Committee may organise Lok Adalats. Under Section 19(5) a Lok Adalat may determine and arrive at a compromise or settlement in any case pending before a court, or in any matter within the jurisdiction of a court but not yet brought before it. It has no jurisdiction over any case or matter relating to an offence not compoundable under any law.
Under Section 20(1) a court shall refer a pending case to the Lok Adalat where the parties agree, or where one party applies and the court is prima facie satisfied that there are chances of settlement, or where the court is satisfied that the matter is appropriate for it; in the last two situations the parties must first be given a reasonable opportunity of being heard. Section 89 of the CPC also lists Lok Adalat among the modes of alternative dispute resolution, a provision explained in Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. (2010). If no compromise is reached, Section 20(5) and (7) require the record to be returned to the referring court, which proceeds from the stage reached before the reference.
Under Section 21 every award of a Lok Adalat is deemed to be a decree of a civil court, or an order of any other court, and where a compromise is reached in a case referred under Section 20(1), the court fee paid is refunded under the Court-fees Act, 1870. The award is final and binding on all parties and no appeal lies against it.
Chapter VIA creates the Permanent Lok Adalat for public utility services. Under Section 22C it may decide a dispute on merits if conciliation fails, it cannot deal with non-compoundable offences, and the Act fixes its pecuniary limit at ten lakh rupees, a figure the Central Government may increase by notification. Its award is final and deemed a decree (Section 22E). Examiners test the bar on non-compoundable offences, refund of court fee, the absence of appeal and the merits jurisdiction of the Permanent Lok Adalat.
What the law says
Section 2, Legal Services Authorities Act
(d)“Lok Adalat” means a Lok Adalat organised under Chapter VI;
Section 2(1)(d): definition of Lok Adalat
Section 19, Legal Services Authorities Act
[(1) Every State Authority or District Authority or the Supreme Court Legal Services Committee or every High Court Legal Services Committee or, as the case may be, Taluk Legal Services Committee may organize Lok Adalats at such intervals and places and for exercising such jurisdiction and for such areas as it thinks fit.
(2) Every Lok Adalat organised for an area shall consist of such number of—
(a) serving or retired judicial officers; and
Organisation and jurisdiction of Lok Adalats
Section 20, Legal Services Authorities Act
for referring the case to the Lok Adalat for settlement and if such court isprima facie satisfied that there are chances of such settlement; or
(ii) thecourt is satisfied that the matter is an appropriate one to be taken cognizance of by the Lok Adalat,
the Court shall refer the case to the Lok Adalat:
Reference of cases and return of record
Section 21, Legal Services Authorities Act
[(1) Every award of the Lok Adalat shall be deemed to be a decree of a civil court or, as the case may be, an order of any other court and where a compromise or settlement has been arrived at, by a Lok Adalat in a case referred to it under sub-section(1) of section 20, the court-fee paid in such case shall be refunded in the manner provided under the Court-fees Act, 1870 (7 of 1870).]
(2) Every award made by a Lok Adalat shall be final and binding on all the parties to the dispute, and no appeal shall lie to any court against the award.
Award deemed decree, final, no appeal
Section 22C, Legal Services Authorities Act
(1) Any party to a dispute may, before the dispute is brought before any court, make an application to the Permanent Lok Adalat for the settlement of dispute:
Provided that the Permanent Lok Adalat shall not have jurisdiction in respect of any matter relating to an offence not compoundable under any law:
Provided further that the Permanent Lok Adalat shall also not have jurisdiction in the matter where the value of the property in dispute exceeds ten lakh rupees:
Permanent Lok Adalat jurisdiction and limits
Section 22E, Legal Services Authorities Act
(1) Every award of the Permanent Lok Adalat under this Act made either on merit or in terms of a settlement agreement shall be final and binding on all the parties thereto and on persons claiming under them.
(2) Every award of the Permanent Lok Adalat under this Act shall be deemed to be a decree of a civil court.
(3) The award made by the Permanent Lok Adalat under this Act shall be by a majority of the persons constituting the Permanent Lok Adalat.
Award of Permanent Lok Adalat final
Example
For example, a pending money suit settled before a Lok Adalat ends in an award that can be executed as a decree, and the plaintiff gets back the court fee he paid.
For the exam
- No jurisdiction over offences not compoundable under any law (Proviso to Section 19(5)).
- Award is deemed a decree of a civil court; no appeal lies (Section 21).
- Court fee is refunded where a referred case is settled (Section 21(1)).
- If no settlement, the case returns to the referring court and resumes from the stage reached (Section 20(5), (7)).
- A Permanent Lok Adalat can decide on merits; its pecuniary limit is set by Section 22C and can be raised by notification.
103 questions in the Law Maker question bank use this term. Practise Civil Procedure Code questions
Judgments
Related terms
- DecreeThe formal expression of an adjudication that conclusively determines the rights of the parties on all or any matter in controversy in a suit, as defined in Section 2(2) of the CPC.
- Commercial disputeA dispute arising out of any of the transactions listed in Section 2(1)(c) of the Commercial Courts Act, 2015, such as mercantile documents, construction contracts, IP rights and sale of goods.
- Arbitral awardThe decision of an arbitral tribunal on the dispute referred to it, including an interim award (Section 2(1)(c) of the Arbitration and Conciliation Act, 1996).
- Arbitration agreementAn agreement by the parties to submit to arbitration all or certain disputes, present or future, arising out of a defined legal relationship (Section 7 of the Arbitration and Conciliation Act, 1996).
- CourtUnder the BNS, a Judge or body of Judges empowered to act judicially, when so acting (Section 2(5)); under the BSA, all Judges, Magistrates and persons, except arbitrators, legally authorised to take evidence (Section 2(1)(a)).
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.