High Court Overturns Lok Adalat Settlement, Affirms Verdicts Not Absolute
The Karnataka High Court has clarified that Lok Adalat verdicts are not unquestionable. A single-judge bench of Justice M. Nagaprasanna issued a significant order, stating that if a Lok Adalat verdict is accepted in the absence of the litigants or both parties, it cannot be considered legally valid and correct for all time. This crucial decision came as the court allowed a writ petition filed by Shaila I Karkihallimath (37) and her son Vishal I Karkihallimath (11) from Hubballi, challenging a Lok Adalat verdict in a motor vehicle accident case where their compensation was reduced.
The petitioners argued that the reduction in their compensation by the Lok Adalat was incorrect, as they were unaware of any settlement reached between their previous lawyer and the insurance company. The bench upheld this argument, noting that the petitioners themselves had not signed the joint memo, despite the respondent insurance company's contention that allowing such petitions could lead to numerous litigations. The court reinstated the Motor Accidents Claims Tribunal's original order for compensation of ₹9,18,600, along with 6% annual interest from the date of filing the application. The High Court further emphasized that it is the responsibility of Lok Adalat members to ensure both parties sign any settlement or agreement in their presence. While Lok Adalat verdicts based on jointly signed memos become final and binding, the court clarified they can be challenged on very limited grounds under Articles 226 and 227 of the Constitution if a party wishes to contest the settlement. It cautioned Lok Adalats to ensure that parties fully understand agreement terms and do not sign settlements made outside the adalat.
Source: CourtBeat News (Kannada)
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