Bombay High Court
AAKASH UMESH TIWARI AND ANRversusJAGDISH OMPRAKASH PATHAK AND ORS
- Decided
- Disposal
- Disposed Off
Holding
The High Court dismissed the writ petition, holding that the Lok Adalat award is valid, final and binding and cannot be set aside on the petitioners' alleged grounds.
Summary
The petitioners, Aakash and Umesh Tiwari, filed a writ petition under Articles 226 and 227 challenging a compromise and the awards passed by the National Lok Adalat in September 2023 in Special Civil Suit Nos. 211/2022 and 245/2022. They alleged that the settlement was procured by fraud, misrepresentation, concealment of facts and undue influence by Respondents No.1 and No.6, and that the reference to the Lok Adalat was made without the parties' consent, violating the Legal Services Authorities Act, 1987. The Court examined whether the reference to the Lok Adalat complied with Section 20 of the Act, whether the award could be set aside on the alleged grounds, and the limited scope of judicial interference under Section 21 of the Act. It found that the parties, through their advocates, had consented to the reference, that the settlement was voluntary and already acted upon, and that the award was a valid decree of a civil court. Consequently, the petition was dismissed as the grounds for interference were not established.
Issues considered
- The reference of the suits to the National Lok Adalat was made in accordance with Section 20 of the Legal Services Authorities Act, 1987.
- Whether the Lok Adalat award can be set aside on grounds of fraud, misrepresentation, undue influence, or procedural irregularities.
- The extent of the High Court's jurisdiction to interfere with a Lok Adalat award under Articles 226/227 and Section 21 of the Act.
- Whether the lack of signatures of certain parties on the award affects its validity.
Legislation cited
- Legal Services Authorities Act, 1987 — s. 19(5)(i), 20, 21(1), 21(2)
- National Legal Services Authority (Lok Adalat) Regulations, 2009
Subjects
- Lok Adalat
- Award
- Settlement
- Fraud
- Undue influence
- Legal Services Authorities Act
- Writ petition
- Section 21
- Section 20
- Civil procedure
Judgment
14 WP 1539-26.DOC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 1539 OF 2026
1. Aakash Umesh Tiwari
Aged about 28 years, Occ.- Student,
2. Umesh Shivraj Tiwari,
Aged about 62 years, Occ.- Business,
Both residing at – Tiwari Compound,
Boisar Road Chaar Rasta,
SAINATH Old Palghar,
SANJAY Tq. & Dist. Palghar – 401404. ..Petitioners
BODKHE
Digitally signed by
SAINATH SANJAY
BODKHE
Date: 2026.10.06
Versus
21:03:21 +0530
1. Jagdish Omprakash Pathak
Aged about 45 years, Occ.- Business,
2. Bharati w/o Shriram Tiwari,
Aged about 48 years, Occ.- Housewife,
Both residing at – Bhola Bhaiya Estate,
Chandanwadi, Almeida Road,
Sarovar Darshan Tower,
Panchpakhadi, Thane (E).
3. Durgaprasad Jagannath Pathak,
Aged about: Adult, Occ.- Business,
Residing at flat no. 902, 9th floor,
Jaydeep Park, Majiwada,
Thane (W) p.c.- 400601.
4. Prabhudayal Jagannath Pathak,
Aged about : Adult, Occ- Business,
5. Surendrakumar Jagannath Pathak
Aged about – Adult, Occ- Business,
Bhola Bhaiya Estate, Chandanwadi,
Almeida Road, Thane (W)-400 601.
5. M/s. Samrin Infrastructure.
Office at – Samrin House, Plot No.221-A
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Wagle Estate, Road No. 16, …Respondents
Thane (W) – 400605.
_____________________________________
Mr. Jaimin M Vyas, for the Petitioners.
Mr. Niranjan Mogre, a/w Mr. Tejas S Joshi, i/b Pooja Joshi, for
Respondent No. 4.
Mr. Sandeep Mishra, a/w Ms. Madhura Mulay, for Respondent
No. 5.
Mr. Amogh Singh, (VC), a/w Mr. Chintan Shah, for
Respondent No. 6.
_____________________________________
CORAM : N. J. JAMADAR, J.
RESERVED ON : 28th SEPTEMBER, 2026
PRONOUNCED ON : 06th OCTOBER, 2026
JUDGMENT :-
1. Rule.
2. Rule made returnable forthwith, and with the consent of
the learned Counsel for the parties, heard finally.
3. By this petition under Articles 226 and 227 of the
Constitution of India, the petitioners, inter alia, seek directions
to quash and set aside the compromise pursis cum agreement
dated 09th September, 2023, filed before the National Lok Adalat,
the award passed by the National Lok Adalat on the basis of the
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said compromise pursis, the consequential order of the disposal
of Special Civil Suit No. 211/2022 and the decree drawn in
terms of the said award, and the withdrawal pursis filed by
Petitioner No.1 in Special Civil Suit No. 245/2022 and the
consequential order of the disposal of Special Civil Suit No.
245/2022 as illegal, invalid and void ab initio.
4. The substance of the petition is that, the compromise
pursis and the awards passed in both the suits on the basis of
the said compromise pursis and all consequential orders were
vitiated by fraud, misrepresentation, concealment of true facts
and undue influence exercised by the Respondent Nos. 1 and 6.
The petitioners were made to sign the said compromise pursis,
withdraw the Special Civil Suit No. 245/2022 and also execute
the registered instruments by practicing fraud on them.
5. It is further asserted that, the reference of the suit to the
Lok Adalat was not in conformity with the provisions of the
Legal Services Authorities Act, 1987 (“the Act, 1987”) nor did the
Lok Adalat has pass the awards after satisfying itself that there
was indeed a settlement and such a settlement was arrived at
by the parties out of their own volition. Thus, the impugned
awards and orders are in violation of the mandatory provisions
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of the Act, 1987 and the National Legal Services Authority (Lok
Adalat) Regulations, 2009.
6. In order to appreciate the challenge to the awards passed
by the National Lok Adalat, in a correct perspective, it may be
apposite to briefly note, the factual backdrop which had led to
the institution of the above numbered suits :-
6.1 Late Omprakash Jagannath Pathak was the father of
Jagdish Omprakash Pathak and Bharati w/o Shriram Tiwari –
Respondent Nos. 1 and 2 herein and plaintiffs in Special Civil
Suit No. 211/2022. Late Aarti Tiwari, who was the mother of
Akash Umesh Tiwari – Petitioner No.1 and wife of Umesh Shivraj
Tiwari– Petitioner No.2, was the sister of Respondent Nos. 1 and
2. The Respondent Nos. 3, 4 and 5 – Defendant Nos. 3 to 5 in
Special Civil Suit No. 211/2022 are the brothers of late
Omprakash Pathak. The Respondent No.6 is the developer in
whose favour development agreements have been executed to
develop suit properties 1 and 2. (The parties are hereinafter
referred to in the capacities in which they were arrayed in
Special Civil Suit No. 211/2022)
6.2 The Plaintiff Nos. 1 and 2 instituted Special Civil Suit No.
211/2022 with the assertion that, as late Aarti Tiwari was
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suffering from health problems and was diagnosed with a brain
tumor and required funds to meet the expenses of her
treatment, she had agreed to relinquish and release her
undivided right, title and interest in suit properties 1 and 2 in
favour of her deceased father Omprakash Pathak. Thus, the
terms of the settlement were arrived at and on 06 th January,
2021, late Aarti Tiwari executed a release deed in favour of late
Omprakash Pathak to which the Defendant Nos. 1 and 2 were
the confirming parties.
6.3 However, subsequently, after the demise of Aarti Tiwari the
Defendant Nos. 1 and 2 resiled from the terms of the said
instrument and demanded their 1/12th undivided share in the
suit properties. Hence, the plaintiffs sought a declaration that,
the said release deed dated 06 th January, 2021, was legal,
operative and binding upon Defendant No.1 and that they be
directed to act upon the said release deed and the consequential
reliefs.
6.4 The Defendant No. 1 – Akash Tiwari, in turn, instituted a
suit being Special Civil Suit No. 245/2022 seeking a declaration
that, he has an undivided 1/12th share in the suit properties
and the said release deed dated 06 th January, 2021, executed by
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14 WP 1539-26.DOC
late Aarti Tiwari in favour of late Omprakash Pathak was void,
illegal and inoperative and was otherwise vitiated on account of
coercion and undue influence.
7. During the pendency of the suits, on 03 rd July, 2023, at
the request of the learned Counsel for the parties, the suits were
directed to be placed in the National Lok Adalat which was held
to be on 09th September, 2023.
8. On 09th September, 2023, before the National Lok Adalat, a
compromise pursis (Exh. 35) was filed in Special Civil Suit No.
211/2022 and the Lok Adalat passed the award in terms of the
said compromise pursis. In terms of the said settlement, the
Defendant No.1 – Akash Tiwari, the plaintiff in Special Civil Suit
No. 245/2022, filed a withdrawal pursis. On the basis of the
said withdrawal pursis, Special Civil Suit No. 245/2022 came to
be disposed as withdrawn and an award was also passed.
9. Now feeling aggrieved, the petitioners have invoked the
writ jurisdiction of this Court.
10. I have heard Mr. Jaimin Vyas, the learned Counsel for the
petitioners, Mr. Niranjan Mogre, the learned Counsel for
Respondent No.4, Mr. Sandeep Mishra, the learned Counsel for
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Respondent No.5 and Mr. Amogh Singh, the learned Counsel for
Respondent No.6. With the assistance of learned Counsel for the
parties, I have also perused the material on record.
11. Mr. Jaimin Vyas, the learned counsel for the petitioners,
submitted that, the very reference of the suit to the Lok Adalat,
was not legal. Laying emphasis on the roznama of the
proceedings dated 03rd July, 2023, Mr. Vyas, urged that, on 03 rd
July, 2023, none of the plaintiffs nor any of the defendants were
present before the Court. Purportedly on the basis of oral
submissions made on behalf of the parties by their respective
Advocates, the matter was referred to the Lok Adalat. The
parties had not given their consent for the reference of the suit
to the Lok Adalat. Therefore, the very reference of the suits to
the Lok Adalat was contrary to the provisions contained in
Section 20 of the Act, 1987. It was further submitted that, the
learned Civil Judge while referring the suit to the Lok Adalat,
did not record the satisfaction that there was an element of
settlement. Such a mechanical reference of the suits vitiated the
entire proceedings before the Lok Adalat.
12. As a second limb of the submission, Mr. Vyas would urge
that, even the National Lok Adalat Panel had not examined the
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legality of the compromise. Neither the voluntariness of the
parties was ascertained nor did the Lok Adalat satisfy itself
that, the parties had arrived at the compromise out of their own
volition. Even the awards were passed in a perfunctory manner.
The award in Special Civil Suit No. 211/2022 does not bear the
signatures of the Respondent Nos.3 and 5. Whereas the award
in Special Civil Suit No. 245/2022 neither bears the signature
of the parties nor the Panel members.
13. An endeavour was also made by Mr. Vyas to drive home
the point that, the petitioners were coerced to execute the
compromise pursis. A fraud was practiced not only on the
petitioners but also on the Court. Therefore, the impugned
award deserves to be quashed and set aside and the suit
restored to file.
14. To lend support to aforesaid submissions, Mr. Vyas placed
reliance on a judgment of this Court in the case of Madhukar
Baburao Shete Vs. Yogesh Trimbak Shete & anr1.
15. Per contra, Mr. Amogh Singh, the learned Counsel for
Respondent No.6, submitted that, the petition is wholly
misconceived and has been instituted with an oblique motive.
1 WP/3743/2021 dt. 20/08/2024
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14 WP 1539-26.DOC
Not only have the petitioners executed the registered
instruments in terms of the compromise but Defendant No.1
has received a sum of Rs. 1,00,00,000/- (Rupees One Crore)
towards lump sum consideration from Defendant No.6. The
facts that, the petitioners had appeared before the Lok Adalat,
executed the consent terms and signed the awards have
nowhere been disputed. In accordance with the consent terms,
Petitioner No.1 has duly withdrawn Special Civil Suit No.
245/2022. Subsequently, Petitioner No.1 has also obtained the
Court Fee Refund Certificate on 01 st February, 2024. Thereafter,
the petitioners have instituted this petition raising false and
frivolous contentions.
16. Mr. Mishra, the learned Counsel for Respondent No.5,
supplemented the submissions of Mr. Singh. It was urged that,
having appeared before the Lok Adalat and filed the compromise
pursis, it was not open for the petitioners to again turn around
and question the legality and validity of the award by making
bald allegations of fraud. To this end, Mr. Mishra placed reliance
on a judgment of the Supreme Court in the case of Hemantha
Kumar Vs. R. Mahadevaiah & ors2.
2 (2022) 8 SCC 140
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17. In the wake of the aforesaid controversy, to have clarity in
regard to the passing of the awards by the Lok Adalat, by an
order dated 25th June, 2026, this Court had called a report from
the learned Principal District Judge, Thane, on the following
points :-
“(i) Who were the members of the Lok Adalat panel
constituted to take up the matters for settlement, on 9
September 2023, before which SCS No.211 of 2022 and
SCS No.245 of 2022, were placed for settlement ?
(ii) Whether the awards passed by the Lok Adalat, on 9
September 2023, in SCC Nos.211 of 2022 and 245 of
2022 bear the signatures of the Presiding Officer and the
members of the Lok Adalat Panel ?
(iii) The names and designations of the members of the
said Lok Adalat Panel who have signed the said
Awards ?”
18. The learned Principal District Judge has reported that, the
Panel of the Lok Adalat before which the Special Civil Suit Nos.
211/2022 and 245/2022 were listed for settlement, was headed
by Smt. Rajshri M. Ganvir, the then 4 th Joint Civil Judge, Senior
Division, Thane, and Shri Bhausaheb Shelke, Advocate. The
award passed in Special Civil Suit No. 211/2022 bears the
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14 WP 1539-26.DOC
signatures of Smt. Rajshri Ganvir, the Panel Head and Advocate
Bhausaheb Shelke, Member. However, the award in Special Civil
Suit No. 245/2022 bears the signature of Smt. Rajshri Ganvir –
Panel Head only.
19. With the aforesaid clarity on facts, it is necessary to bear
in mind that, the law attaches sanctity to the settlement before
the Lok Adalat. Under Section 21(1) of the Act, 1987, 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.
Under Sub-section (2) thereof, 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.
The award passed by the Lok Adalat is thus final and binding
on the parties thereto.
20. In the case of State of Punjab V. Jalour Singh 3, a three-
Judge Bench of the Supreme Court considered the question as
to the finality of the award passed by the Lok Adalat. It was
enunciated that, an award passed by the Lok Adalat becomes
final and binding on the parties to the settlement and becomes
executable as if it is a decree of a civil Court and if any party
3 (2008) 2 SCC 660
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14 WP 1539-26.DOC
wants to challenge such an award based on the settlement, it
could be done only by filing a petition under Article 226 and/or
227 of the Constitution of India and that too on very limited
grounds.
21. The observations of the Supreme Court in paragraph 12
are instructive and, hence, extracted below :-
“12. It is true that where an award is made by Lok
Adalat in terms of a settlement arrived at between the
parties, ( which is duly signed by parties and annexed to
the award of the Lok Adalat), it becomes final and
binding on the parties to the settlement and becomes
executable as if it is a decree of a civil court, and no
appeal lies against it to any court. If any party wants to
challenge such an award based on settlement, it can be
done only by filing a petition under Article 226 and/or
Article 227 of the Constitution, that too on very limited
grounds. But where no compromise or settlement is
signed by the parties and the order of the Lok Adalat
does not refer to any settlement, but directs the
respondent to either make payment if it agrees to the
order, or approach the high Court for disposal of appeal
on merits, if it does not agree, is not an award of the Lok
Adalat. The question of challenging such an order in a
petition under Article 227 does not arise. As already
noticed, in such a situation, the High Court ought to
have heard and disposed of the appeal on merits.
(emphasis supplied)
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14 WP 1539-26.DOC
22. The Supreme Court has in no uncertain terms held that
an award passed by the Lok Adalat can be challenged only by
filing a petition under Article 226 and/or Article 227 of the
Constitution, and that too on very limited grounds.
23. Evidently, the scope of interference with an award passed
by the Lok Adalat, even in exercise of extraordinary writ
jurisdiction, is of restricted nature. The High Court cannot
examine the matter like an Appellate Court as if the entire issue
is open before the Court. It is only in cases of apparent and
egregious fraud, irretrievable injustice to a party, the award
being ex facie unlawful, the award having been passed in
flagrant violation of the fundamental principles of the judicial
process or where the award appears to be in clear breach of the
provisions of of the Act, 1987 and the Regulations framed
thereunder, and the like, the High court may, in exercise of its
extraordinary jurisdiction, interfere with the award of the Lok
Adalat.
24. On the aforesaid touchstone, reverting to the facts of the
case, it is necessary to note that, under the provisions of
Section 20 r/w Section 19(5)(i) of the Act, 1987, the Court has
the power to refer any case pending before it, to the Lok Adalat
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for settlement, if the parties thereto agree or one of the parties
thereof makes an application to the Court and such Court is
prima facie satisfied that, there are chances of such settlement.
25. In the case at hand, as noted above, on 03 rd July, 2023,
the Advocates for the parties had made a request to place the
matter before the Lok Adalat. On the basis of such submission,
the matter was posted in the Lok Adalat which was to be held
on 09th September, 2023, nearly 2 months after the reference. I
find it rather difficult to accede to the submissions of Mr. Vyas,
that the reference of the matters to the Lok Adalat was not with
the consent of the parties. A period of more than 2 months
elapsed from the date of reference. At no point, till the date of
Lok Adalat or even before the Lok Adalat, Defendant Nos. 1 and
2 made a grievance that, the suits were referred to the Lok
Adalat without their consent.
26. It would be taking too rigid a view of the matter to hold
that, the Presiding Officer must record the consent of the
parties themselves and not the Advocates who represent them.
The prima facie satisfaction of the Court regarding the existence
of element of settlement may be express or implicit in the order
of reference. In any event, these objections pale in significance
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as the Defendant Nos. 1 and 2 not only did appear before the
National Lok Adalat, but also executed the
compromise/withdrawal pursis. Therefore, the submission of
Mr. Vyas that, there was no valid reference, cannot be
countenanced.
27. The second submission premised on the want of
satisfaction by the Lok Adalat Panel about the voluntariness of
the parties to execute the consent terms or the legality and
validity thereof, also does not carry much substance. The
compromise pursis is self-explanatory. The Panel Head had
passed the following order on the compromise pursis : -
ORDER
Plaintiff and Defendants are present. They have
admitted that as per Compromise Pursis
compromise has taken between them.
Sd/-
Panel Head/
09.09.22
28. The consent terms, inter alia, record that, two registered
instruments namely a release deed and an agreement for sale
were already executed on 05th April, 2023 and the Defendant No.
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6 had paid a lump sum consideration of Rs. 1,00,00,000/-
(Rupees One Crore) to the Defendant No.1, that the Special Civil
Suit No. 211/2022 be disposed in accordance with the consent
terms and that a consent decree be drawn therein, and that the
Defendant No.1 had agreed to withdraw Special Civil Suit No.
245/2022. As noted above, the award bears the signature of
both the Head of the Panel as well as the Panel Member.
29. Thus, the endeavour of Mr. Vyas to assail the legality and
validity of the award, on the ground that, the Lok Adalat has not
satisfied itself about the voluntariness of the parties and the
legality and validity of the settlement falls through. The parties
had executed registered instruments and the Defendant No.1
had accepted the consideration of Rs. 1,00,00,000/- (Rupees
One Crore), months before filing of the consent terms before the
Lok Adalat. The consent terms were not executory in nature. In
fact, the terms of settlement were already acted upon by
executing the instruments and accepting the consideration
thereunder. These factors also belie the contention of the
Defendant Nos. 1 and 2 that there was no consent for the
reference of the matters to Lok Adalat as instruments were
executed months before the request was made to the Court on
03rd July, 2023.
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30. The fact that, in accordance with the terms of the
settlement and pursuant to the consent terms filed in Special
Civil Suit No. 211/2022, Petitioner No.1 had withdrawn the
Special Civil Suit No. 245/2022, on the very day, is borne out by
the withdrawal pursis (Exh. 39) in the later suit and the order
passed by the Panel Head thereon. Incontrovertibly, the
Petitioner No. 1 had received the Court Fee Refund Certificate
on 01st February, 2024 in the said suit. In this backdrop the fact
that the award in Special Civil Suit No. 245/2022 bears the
signature of the Petitioner No.1/Plaintiff No.1 therein alone and
the Panel Head, does not detract materially from the legality and
validity of the settlement as the said suit was withdrawn
simpliciter as a sequel to the settlement arrived at in Special
Civil Suit No. 211/2022.
31. In the totality of the circumstances, the petitioners who
have acted upon the terms of the settlement even prior to the
filing of the consent terms before the Lok Adalat and obtained
the benefits thereunder, cannot be permitted to take a
somersault and urge that, the settlement was arrived at by
practicing fraud and/or the consent decree was otherwise
vitiated. If the sanctity of the award passed in the Lok Adalat is
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permitted to be questioned by entertaining petitions of the
present nature, the very object of the provisions contained in
Section 21 of the Act, 1987, would be defeated.
32. The Writ Petition, therefore, deserve to be dismissed.
33. Hence, the following order :-
::ORDER::
(i) The Writ Petition stands dismissed.
(ii) Rule discharged.
No costs.
[N. J. JAMADAR, J.]
SAINATH, PA 18/18
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