Holding

A Lok Adalat award is deemed a decree of a civil court, enforceable with full court powers, and the respondent was obligated to execute the sale deed; the notice was deemed served, and the court may extend time for compliance.

Summary

The appellant and his elder brother (respondent) partitioned their father's property, but the brother failed to vacate a portion of a theatre belonging to the appellant, leading to a suit for mandatory injunction which was decreed in the appellant's favour. While the appeal was pending, the dispute was referred to a Lok Adalat, which awarded the sale of the disputed portion to the appellant for Rs 9.5 lakhs, with the respondent obligated to execute the sale deed within two years. The respondent did not execute the deed; the appellant served a notice (returned unserved) and a telegram, then petitioned the trial court for execution of the award. The trial court allowed execution and directed the appellant to deposit the amount, which he did. The High Court dismissed the execution petition, holding it had no jurisdiction to extend time and that the notice was not properly served. The Supreme Court held that a Lok Adalat award is deemed a decree of a civil court, enforceable with the same powers, including extending time; the notice was deemed served under the Post Office Act and Evidence Act; the respondent bore the duty to execute the deed. Consequently, the High Court's order was set aside and the appeal allowed.

Issues considered

The award of a Lok Adalat is deemed a decree and is enforceable like a civil court decree.
Whether the court has jurisdiction to extend time for compliance of a Lok Adalat award.
Whether a notice returned unserved under the Post Office Act is deemed served under law.
Who bears the burden of initiating execution of the award – the decree holder or the judgment debtor.
Whether the High Court correctly dismissed the execution petition.

Legislation cited

Code of Civil Procedure, 1908s. 115, s. 96
Indian Evidence Act, 1872s. 114
Indian Post Office Acts. 27
Legal Services Authorities Act, 1987s. 21, s. 22

Subjects

property disputepartition of ancestral propertyLok Adalat awarddecree enforcementmandatory injunctionnotice servicePost Office ActEvidence ActCivil Procedure CodeLegal Services Authorities Act

Judgment

A P.T. THOMAS
v.
.
THOMAS JOB

AUGUST 4, 2005

B [RUMA PAL AND DR. AR. LAKSHMANAN, JJ.]

Property dispute-Partition of ancestral property amongst brothers by
metes and bounds-Part allotted to one of brother not vacated by other-
Suit for mandatory injunction for possession-Decree by trial court-
c Pending appeal, compromise in Lok Ada/at providing for sale and payment
of consideration within a prescribed time, and on default execution of sale
through court-Notice by decree holder ca!ling on the judgment debtor to
execute the sale deed returning unserved-Petition of decree holder to Trial
Court for execution of award of Lok Ada/at allowed with direction to him
to deposit the requisite amount in court, and same complied with-Dismissal
D
of execution petition by High Court-Whether proper-Held : Initiative for
J initiating execution of sale deed had to come from judgment debtor and not

from decree holder-Decree holder had performed his obligation by sending
notice to judgment debtor before the expiry of time, and as it was correctly
addressed, there was presumption oflaw that it has been served-High Court
E was wrong in holding that the Court had no jurisdiction to extend the time
for depositing the money.

Post Office Act-Section 26-Evidence Act-Section I I 4-Notice-
Service of-Postman giving notice making endorsement that noticee was
F absent-Despite intimation by post office, notice returning unserved-Held
: There was presumption of law that notice has been served-Examination
of the post man was not needed.

Lok Adalats-Award of-It is fictionally deemed to be decrees of
Court-Therefore, the courts have all the powers in relation thereto as it has
G in relation to a decree passed by itself, including the powers to extend time
in appropriate cases.

Respondent is elder brother of appellant. The~-, along with another
brother who was in USA, had partitioned by metes and bounds the
H property left behind by their father, which included a theatre run by
20
P.T. THOMAS v. THOMAS JOB 21

respondent. A part of the theatre fell in the property allotted to the A
. appellant. Since respondent did not give its vacant possession to appellant,
he filed a suit for mandatory injunction for removal of the building and
surrender of vacant possession. This suit was decreed. However, during
pendency of appeal against the decree, the dispute was referred to Lok
Ada lat constituted under the Legal Services Authorities Act, I 987. Lok
Adalat settled the dispute by its award providing for sale to appellant the B
property as described in the schedule. This sale was to take place after
one year and within two years appellant was to pay the respondent Rs.
9.5 lakhs. It was also provided that on default of respondent to execute
the document, the appellant could get it executed through court. On
default on part of appellant, it was provided that he would give up his C
aforesaid right and be entitled to be paid Rs. 3.5 lakhs by respondent.
However, as respondent did not execute the sale deed within the fixed
time, the appellant sent a lawyer's notice calling on him to execute the
sale deed. This notice returned unserved. Thereafter, appellant sent a
telegram to same effect, and also sent copy of his earlier notice by
certificate of posting. As there was no response from the respondent,
D
appellant petitioned the Trial Court to execute the award. Trial Court
allowed the execution and directed the appellant to deposit in court the
requisite amount within the time limit prescribed, Which he complied
with. High Court ho,veve1 dismissed the execution petition. Hence the
present appeal. E
Appellant contended that respondent had not performed his
obligation by evincing willingness to execute the sale deed on , eceipt of
the amount of Rs. 9.5. lakhs.

Respondent contended that the award of Lok Ada lat cannot be· F
equated with decree as it incorporates a compromise between the parties,
• and in case of violation of same, the parties lose their right to get the same
executed; that the appellant neither had the resources nor ever offered
the said amount to respondent at any point of time, and belated payment
after the order of the executing court will not improve their case to prove G
readiness and willingness to deposit a sum of Rs. 9.5 lakhs on the specified
date on the basis of which the matter was compromised; and that there
was no effective service of any notice on them and the only endorsement
on it was about their absence.

' Allowing the appeal, the Court H
22 SUPREME COURT REPORTS [2005) SUPP. 2 S.C.R.

A HELD : I. The High Court misunderstood the terms of the award.
The obligation was on the Respondentto evince his willingness to execute
the sale deed within two years and not vice-versa as assumed by the High
Court. There was already a decree of ejectment against the Respondent in
the suit in the trial Court and it was his appeal that was sought to be settled
in the Lok Ada lat. The settlement was a concession in his favour giving a
B breathingtime to vacate and give vacant possession. Therefore, the initiative
had to come from the Respondent after offering to execute the sale deed
whereupon it became necessary to comply with his obligations. However,
without taking any initiative the Respondent has adopted the delaying
tactics by alleging that the Appellant was not able to provide the requisite
c funds for purchase and forgetting the facts that the appellant's brother is
in USA and providing the requisite fonds for purchase. It was he, in fact,
who provided the amount which was deposited on 7.4.2003 and not on
8.4.2003 as assumed by the High Court. !2-6-B-E] ·

2.1. It is, seen that the Appellant has performed his obligation. He
D had sent the notice on 3.10.2001 and it was 4.10.2001 well before the
expiry of time on 5.10.2001. Though the notice was correctly addressed
and despite the intimation by the post office, the notice was not accepted
by the Respondent and was returned unserved. ht such circumstances,
the presumption of law is that the notice has been served on the
E Respondent. [26-E-F]

2.2. The High Court has also misinterpreted Section 27 of the Post
Office Act. The requirement of Section has been complied with in this
case. The reasoning of the High Court on this issue is not correct and not
in accordance with factual position. In the notice issued, the Postman has
F
made the endorsement.This presumption is correct in law. Hehad given
notice and intimation. Nevertheless, the respondent did not r~ceive the
notice and it was returned unserved. Therefore there is no obligation cast
on the appellant to examine the Postman as assumed by the High Court.
The presumption under Section 114 of Evidence Act operates apart from
G that under the Post Office Act. [26-F-H; 27-A)

2.3. The steps taken by the appellant to serve notice on the r.espondent
and the steps taken by him to perform his obligations and sending of the
notice and telegram etc. would not have been done unless .the appellant
was ready with his obligations and the money all along. The appellant
H
P.T. THOMAS v. THOMAS JOB 23

had waited .till almost the last day for the respondent to perform his A
obligations. The High Court has failed to note that the courts attempt
should be to be give life and enforceability to the compromise award and
not to defeat it on technical grounds. This is a fit case where the Respondent
ought to have been directed to execute the sale deed by the extended time,
if necessary. The High Court is also not correct in holding that the Court
has no jurisdiction to extend the time. The Subordinate Court has rightly
B
extended the time for depositing the money which the High Court has
wrongly interfered with. (34-H; 35-A-B(

3. The award of the Lok Ada lat is fictionally deemed to be decree
• of Court and therefore the courts have all the powers in relation thereto C
as it has in relation to a decree passed by itself. This includes the powers
to extend time in appropriate cases. The award passed by the Lok Adalat
is the decision of the court itself though arrived at by the simpler method
of conciliation instead of the process of arguments in court. The effect
is the same. In this connection, the High Court has failed to nole that by
the award what is put an end to is the appeal in the District Court and D
thereby the litigations between the brothers forever. The view taken by
the High Court will totally defeat the object and purposes of the Legal
Services Authorities Act and render the decision of the Lok Adalat
meaningless. (29-A-CI

Sai/endera Narayan Bha1y·a Dea v. The State of Orissa, AIR (1956) SC
E
346, followed.

Punjab National Bank v. Lakshmmichand Rah, AIR (2000) Madhya
Pradesh 301; Board of Trustees of the Port of Visakhapatnam v, Presiding
Officer, Permanent Lok Ada/at-cum Secretary, District legal Services F
Authority, Visakhapatnam, (2000) 5 ALT 577; Secy. a/State v, Ateendranath
• Das, 63 Cal. 550; Bhaishanker v, Morarji, 36 Born. 283 and Raja Kumara
Venkata Perumal Raja Bahadur v, Thatha Ramasamy Chetty, 35 Mad. 75,
approved.

CIVIL APPELLATE JURISDICTION Civil Appeal NO. 4677 of G
2005.

From the Judgment and Order dated 27.8.2003 of the Kerala High
Court in C.R.P. No. 1136 of 2003(A).

T.L.V. Iyer, and T.G. Narayanan Nair for the Appellant. H
24 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A M.P. Vinod, Ajay K. Jain and P. Sajith for the Respondent.

The Judgment of the Court was delivered by

DR. AR. LAKSHMANAN, J. : Leave granted.

B The above appeal is directed against the final order of the High Court
ofKerala at Emakulam dated 27.8.2003 in CRP No. 1136/20"03 allowing the
Revision P~tition filed by the Respondent herein.

The Appellant and the Respondent are brothers, Respondent being the
elder. They have another brother who is well employed in the United States.
c The three brothers partitioned the property left behind by their father by
metes and bounds. The Respondent was running a theatre. A part of the
theatre fell in the property allotted to the appellant. Since Respondent did
not vacate and give vacant possession to the Appellant, he was constrained
to file a suit for a mandatory injunction for removal of the building and to
D surrender vacant possession. The Appellant also prayed for a decree for
recovery of possession.

The appellant's suit was decreed as prayed for.. When the matter was
pending in appeal at the instance of the Respondent in the District Court,
the dispute was referred to the Lok Adalat constituted under the Legal
E Services Authorities Act for resolution of the dispute. The matter was settled
in the Lok Adalat. The award of the Lok Adalat dated 5.10.1999 provided
for sale to the Appellant or his nominee of the property scheduled to the
award after a period of one year and within a period of two years on payment
of a sum of Rs. 9.5 lakhs to the Respondent and on default of the Respondent
F to execute the document, the appellant could get it executed through court.
On the other hand, in case of default on the part of the appellant, he had
to give up his aforesaid right and inste.ad be entitled to be paid to Rs. 3.5
lakhs by the Respondent.

The Respondent did not execute the sale deed within the time fixad
G despite repeated requests by the Appellant. The Appellant, therefore, sent a
lawyer's notice on 3. l.0.200 I to the Respondent calling upon him to execute
the sale deed. Respondent did not receive the notice and the notice was
returned unserved to the Appellant. The Appellant tht;'reafter sent a telegram
on 26.10.200 I requiring the Respondent to execute the sale deed and also
H sent him a COJ'lY of his earlier notice dated 3. I 0,200 I by certificate of posting.
P.T. THOMAS v. THOMAS JOB [LAKSHMANAN, J.] 25

There was no response from the Respondent . .The Appellant was, therefore, A
cons.trained to move for execution of the award by filing petition in the Trial
Court, which was opposed on various grounds. The Subordinate Judge
overruled all the objections and the appellant was directed to deposit a sum
of Rs. 9.5 lakhs within three days i.e., on or before 8.4.2003. The Appellant,
however, deposited the amount one day earlier on 7.4.2003 the next working
day. But, the High Court allowed the Revision filed by the Respondent and
B
dismissed the execution petition on grounds, which according to the
Appellant, are irrelevant and incorrect. Hence, the Appellant preferred the
above special leave petition.

We have heard Mr. TLV Iyer, learned senior counsel for the Appellant C
and Mr. M.P.Vinod, learned. counsel for the Respondent and perused the
pleadings, orders passed by the courts below and the Annexures filed along
with the appeal.

Mr. .TLV Iyer, learned senior counsel appearing for the Appellant D
submitted that the High Court has exceeded its jurisdiction under Section 115
C.P .C in entering into the investigation of questions of fact and appraisal of
evidence in setting aside the well considered order of the Executing Court.
H~ further sub1nitted that the High Court is in error in holding that the
Appellant did not have the funds with him to have the deed of sale executed
in his favour and the reasoning and the premises on \Vhich such a conclusion E
is based are faulty and fallacious besides being beyond jurisdiction. It is
further submitted that the Respondent had not performed his obligations by
evincing his willingness to execute the sale deed on receipt of the an1ount
of Rs. 9.5 lakhs. Concluding his arguments, Mr. Iyer submitted that the view
taken by the High Court would totally defeat the object and purposes of the F
Legal Services Authorities Act and render the decisions of the Lok Adalat
• meaningless .

Per contra, Mr. Vinod, learned counsel for the Respondent submitted
that the appellant has not paid the sum of Rs. 9.5 lakhs after one year from
the date of the award, namely, 5.10.1999 and at any rate within two years G
therefrom. It is further submitted that the appellant als? did not deposit the
amount before filing the execution petition as contemplated in the award.
Even when he was examined in court on 22.2.2003, he had not deposited
the said amount. According to Mr. Vinod, the award of the Lok Adalat

. ' cannot be equated with a decree and it only incorporates an agreement H
26 SUPREME COURT REPORTS (2005] SUPP. 2 S.C.R.

A between the parties and that in case of any violation of the said agreement,
or the terms of the compromise recorded in the award, the parties lose their
right to get the same executed and the compromise stands withdrawn. It is
further argued that the Appellant admittedly had not produced any material
to show that the Appellant had the resources to pay the said amount at any
relevant point of time or that the said amount was ever offered to the
B respondent at any point of time and, therefore, the appellant is not entitled
to any relief in this appeal.

It is further submitted that there is no effective service of any notice
on the Respondent before 5.10.1999 and the only endorsement is that the
c Respondent was absent. It is submitted that the Appellant never had the
money with him and the belated payment after the order of the executing
court will not improve the case of the Appellant to prove his readiness and
willingness to deposit a sum of Rs. 9.5 lakhs as agreed upon by him, and
on the date specified, on the basis on which the matter was compromised
before the Lok Adalat and an award was passed. Concluding his arguments,
D
learned counsel submitted that there is no merit whatsoever in the grounds
raised in this appeal and therefore, the appeal, which is clearly without any
merits, deserves to be dismissed.

We have carefully considered the rival submissions made by both the
E learned counsel. We do not find any merit in the submissions made by
learned counsel for the Respondent. From the evidence and the documents
filed, we see bona fides on the part of the appellant in giving effect to the
compromise arrived at between parties in the Lok Adalat. We also see
absolute merits on the submissions made by learned senior counsel, Mr~ TL V
F Iyer.

It is seen from the records that the Appellant was compelled to file the
suit for recovery of possession of Plot No. 2 since the Respondent herein
refused to comply with the terms of the compromise arrived at between the
parties. The suit was decreed on 26.7.1990 and appeal was filed by the
G Judgment Debtor-Respondent before the District Court and during the
pendency of the appeal the matter was compromised between parties on.
5.10.1999. We have already extracted the terms of compromise in paragraph
supra. It is thus clear that the decree holder Appellant has approached the
executing court on the ground that the Judgment debtor/Respondent failed
H to execute the sale deed after receiving Rs. 9.5 lakhs from the decree holder.
P.T. THOMAS v. THOMAS JOB [LAKSHMANAN, J.] 27

Therefore the Appellant prayed before the Executing Court that he should A
be permitted to deposit Rs. 9.5 lakhs in that court and get the documents
executed through court if the Judgment debtor failed to do so on issuance
of notice for the purpose by the executing court. The respondent submitted
that the compromise arrived at is a conditional one and Judgment debtor is
liable to execute the sale deed in favour of the decree holder only ifhe remits
the amount as agreed, and since decree holder has failed to comply with the
B
conditions the Judgment debtor is not bound by the terms of the compromise.
On the other hand the respondent/J.D. was ready and willing to deposit
Rs. 3.5 lakhs before the executing court as per the terms of the compromise.

Before the executing Court witnesses were examined on both sides and c
Exhibit A I to AS and BI were produced by the respective parties. The
executing court, accepting the evidence of PW 1 came to the conclusion that
the notice issued requiring the respondent to execute the document as
submitted in the award was not received by the Judgment debtor and it has
been returned unclaimed. It is seen that notice was an attempt to be served
D
on the Judgment debtor on 4.10.2001 and since he was absent, intimation
regarding the notice has been given and the above notice has been returned
as unclaimed on 19.10.2001. The Appellant after return of the Exhibit A2
notice immediately sent a telegram to the Judgment debtor on 26.1.200 I. The
receipt issued for the telegram and certified true copy of the telegram was
marked as Exhibit A3 and A4. The Original telegram was produced on the E
side of the Respondent and marked as an Exhibit. By the telegram the

-
Judgment debtor was intimated that the notice sent by the decree holder
through his Advocate on 3.10.200 I was returned unclaimed and copy of that
notice was being forwarded by certificate of posting and that he was always
ready and willing to pay Rs. 9 .5 lakhs and get the sale deed executed in terms F
of the award. The copy of the Exhibit A2 notice is marked as AS, the
certificate of posting obtained for issuing the copy of notice along with the
•
copy of the telegram is marked as Exhibit A6. Thus, it is clearly seen that
the appellant decree holder has expressed his readiness and willingness to
deposit the amount as per the award and get the document executed.
G
It is argued on the side of the Respondent that the Appellant has not
sufficient fund to fulfill the obligation as per the award and that the Appellant
had issued a notice arid telegram so as to create some records in his favour
that he is always willing and ready to pay the amount as per the award. It
is submitted that it is only due to the default of the Appellant the execution H
28 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A of the sale deed has not taken place and therefore, the Appellant i~ not
entitled to any relief in this appeal. The learned Subordinate Judge on a
consideration of the entire evidence placed on record granted the Appellant
three days time to deposit Rs. 9.5 lakhs before the said court upon which
he could get the sale deed through court as stipulated in the award. The
appellant as directed by the learned Subordinate Judge deposited the entire
B sum of Rs. 9.5 lakhs in the sub-court on 7.4.2003 as could be seen from
Annxure 6.

We have also perused the order of the learned Single Judge of the High
Court in revision. The learned Single Judge, in our view, has misunderstood
c the terms of the award. The obligation was on the Respondent to evince his
willingness to execute the sale deed within two years and not vice-versa as
assumed by the High Court. There was already a decree of ejectment against
the Respondent in the suit in the trial Court and it was his appeal that was
sought to be settled in the Lok Adalat. The settlement was a concession in
his favour giving a breathing time to vacate and give vacant possession. •
D Therefore, the initiative had to come from the Respondent after offering to
execute the sale deed where upon it became necessary to comply with his
obligations. However, without taking any initiative the Respondent has
adopted the delaying tactics by alleging that the appellant was not able to
provide the requisite funds for purchase and forgetting the facts that the ·
E Appellant's brother is in USA and providing the requisite funds for purchase.
It was he, in fact, who had provided the amount which was deposited on
7.4.2003 and not on 8.4.2003 as assumed by the High Court. It is, thus, seen
that the Appellant has performed his obligation. He had sent the notice on
3.10.2001 and it was 4.10.2001 well before the expiry of time on 5.10.2001.
Though the notice was correctly addressed and despite the intimation by the
F post office, the notice was not accepted by the Respondent and was returned
unserved. In such circumstances, the presumption of law is that the notice
has been served on the Respondent. .-
The High Court, in our view, has also misinterpreted Section 27 of the
Post Office Act. The requirement of Section has been complied with in this
G case. The reasoning of the High Court on this issue is not correct and not
in accordance with factual position. In the notice issued, the Postman has •
made the endorsement. This presumption is correct in law. He had given
notice and intimation. Nevertheless, the respondent did not receive the notice
and it was returned unserved. Therefore, in our view, there is no obligation
H cast on the appellant to examine the Postman as assumed by the High Court.
P.T. THOMAS v. THOMAS JOB [LAKSHMANAN, J.] 29

The presumption under Section 114 of the Evidence Act operates apart from A
that under the Post Office Act.

In our opinion, the award of the Lok Adalat is fictionally deemed to
be decrees of Court and therefore the courts have all the powers in relation
thereto as it has in relation to a decree passed by itself. This, in our opinion,
includes the powers to extend time in appropriate cases. In our opinion, the B
award passed by the Lok Adalat is the decision of the court itself though
arrived at by the simpler method of conciliation instead of the process of
arguments in court. The effect is the same. In this connection, the High Court
has failed to note that by the award what is put an end to is the appeal in
the District Court and thereby the litigations between brothers forever. The C
view taken by the High Court, in our view, will totally defeat the object and
purposes of the Legal Services Authorities Act and render the decision of
the Lok Adalat meaningless.

Section 21 of the Legal Services Authorities Act, 1987 reads as
follows:- D
"21. AWARD OF LOK ADALAT. -2[(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 on it under sub-section (I) of Sec.20, the court fee E
paid in such cases 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. F
Section 22 reads thus :-

"22. POWERS OF LOK ADALATS - (I) The Lok Adalat
shall, for the purposes of holding-any determination under this Act,
have the same powers as are vested in a Civil Court under the Code G
of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect
of the following matters, namely :

(a) the summoning and enforcing the attendance of any witness
f
and examining him on oath; H
30 SUPREME COURT REPORTS [2005}SUPP. 2 S.C.R.

A (b) the discovery and production of any document; "'
(c) the reception of evidence on affidavits;

(d) the requisitioning of any public record or document or opy
of such record or document from any Court or Office; and
B
(e) such other matters as may be prescribed.

(2) Without prejudice to the generality of the powers contained in
sub-section (I), every Lok Adalat shall have the requisite powers
to specify its own procedure for the determination of any dispute •
c coming before it.

(3) All Proceedings before a Lok Adalat shall be deemed to be
judicial proceedings within the meaning of Secs. 193, 219 and 228
of the Indian Penal Code (45 of 1860) and every Lok Ada lat shall
be deemed to be a Civil Court for the purpose of Sec. 195 and
D Chapter XXVI of the Code of Criminal Procedure, 1973 (2) of
1974).

UNREPORTED JUDGEMENTS 2004 (2) VOL 37."

What is Lok Adalat? :
E
"The "Lok Adalat" is an old fonn of adjudicating system.
prevailed in ancient India and it's validity has not been taken away
even in the modem days too. The word 'Lok Adalat' means 'People
Court'. This system is based on Gandhian Principles. It Is one of
F the components of ADR system. As the Indian Courts are over
burdened with the backlog of cases and the regular Courts are to ...
decide the cases involve a lengthy, expensive and tedious procedure.
The Court takes years together to settle even petty cases. Lok
Adalat, therefore provides alternative resolution or devise for
expedious and inexpensive justice.
G
In Lok Adalat proceedings there are no victors and vanquished
and, thus, no rancour.

Experiment of 'Lok Adalat' as an alternate mode of dispute
settlement has come to be accepted in India, as a viable, economic,
H
P.T. THOMAS v. THOMAS JOB [LAKSHMANAN, J.] 31
.. efficient and informal one. A
LOK ADALAT is another alternative to JUDICIAL JUSTICE.
This is a recent strategy for delivering informal, cheap and exped_itious
justice to the common man by way of settling disputes, which are
pending in Courts.and also those, which have not yet reached Courts
by negotiation, conciliation and by adopting persuasive, common B
sense and human approach to the problems of the disputants, with
the assistance of specially trained and experienced Members of a
Team of Conciliators."

Benefits Under Lok Adalat:
c
!. There is no Court fee and if Court fee is already paid the
amount will be refunded if the dispute is settled at Lok Adalat
according to the rules.

2. The basic features of Lok Ada lat are the procedural flexibility D
and speedy trial of the disputes. There is no strict application
of procedural laws like Civil Procedure Code and Evidence
Act while assessin·g the claim by Lok Adalat.

3. The parties to the dispute can. directly interect with the Judge
through their Counsel which is not possible in regular Courts E
of law.

4. The award by the Lok Adalat is binding on the parties and it
has the status of a decree of a Civil Court and it is non-
appealable which does not causes the delay in the settlement
F
of disputes finally.

In view of above facilities provided by the 'Act' Lok Ada lats are boon to
the litigating public they can get their disputes settled fast and free of cost
amicably.
G
AWARD OF LOK DALAT :-

The Lok Adalat shall proceed and dispose the cases and arrive at a
compromise or settlement by following the legal principles, equity and
• natural justice. Ultimately the Lok Adalat passes an award, and every such
H
32 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A award shall be deemed to be a decree of Civil Court or as the case may be
which is final.

AWARD OF LOK ADALAT SHALL BE FINAL:-

The Lok Adalat will passes the award ·with the consent of the parties,
B therefore there is no need either to reconsider or review the matter again and
again, as the award passed by the Lok Adalat shall be final. Even as under
Section 96(3) of C.P.C. that "no appeal shall lie from a decree passed by
the Court with the consent of the parties". The award of the L_ok Adalat is
an order by the Lok Ada lat under the consent of the parties, and it shall be
C deemed to be a decree of the Civil Court, therefore an appeal shall not lie
from the award of the "Lok Adalat as under Section .96(3) C.P.C.

In Punjab National Bank v. Lakshmichand Rah reported in AIR (2000)
Madhya Pradesh 30 I, 304, the High Court held that "The provisions of the
Act shall prevail in the matter of filing an appeal and an appeal would not
D lie under the provisions of Section 96 C.P.C. Lok Adalat is conducted under
an independent enactment and once the award is made by Lok Adalat the
right of appeal shall be governed by the provisions of the Legal Services
Authorities Act when it has been specifically barred under Provisions of
Section 2 I (2), no appeal can be filed against the award under Sec.96 C. P.C."
E The Court further stated that "It may incidentally be further seen that even
the Code of Civil Procedure does not provide for an appeal under Section
96(3) against a consent decree. The Code of Civil Procedure also intends that
once a consent decree is passed by Civil Court finality is attached to it. Such
finality cannot be permitted to be destroyed, particularly under the Legal
F Services Authorities Act, as it would amount to defeat the very aim and
object of the Act with which it has been enacted, hence, we hold that the
appeal filed is not maintainable.

The High Court of Andhra Pradesh held that, in Board of Trustees of
the Port of Visakhapatnam v. Presiding Officer, Permanent, Lok Adalat-
G cum-Secretary, District Legal Services Authority, Visakhapatnam and another
reported in (2000) 5 ALT 577, "The award is enforceable as a decree and
it is final. In all fours, the endeavour is only to see that the disputes are
narrowed down and make the final settlement so that the parties are not again
driven to further litigation or any dispute. Though the award of a Lok Adalat
H is not a result of a contest on merits just as a regular suit by a Court on a
P.T. THOMAS v. THOMAS JOB [LAKSHMANAN, J.] 33

regular suit by a Court on a regular trial, however, it is as equal and on par A
with a decree on compromise and will have the same binding effect and
conclusive just as the decree passed on the compromises cannot be challenged
in a regular appeal, the award of the Lok Adalat being akin to the same,
cannot be challenged by any regular remedies available under law including
invoking Article 226 of the Constitution of India challenging the correctness
of the award on any ground. Judicial review cannot be invoked in such B
awards especially on the grounds as raised in this writ petition.

• The award of Lok Adalat is final and permanent which is equivalent
to a decree executable, and the same is an ending to the litigation among
~~ c
In Sailendra Narayan Bhanja Dea v. The State of Orissa, AIR (1956)
SUPREME COURT 346, (CONSTITUTION BENCH) held as follows:

A Judgment by consent or default is as effective an estoppel
between the parties as a judgment whereby the court exercises its
D
mind on a contested case. (1895) l Ch.37 & [1929] AC 482, Rel.
on;

In - 'In re South American and Mexican Co., Ex. Parle Bank
of England', (1895) l Ch 37 ©,it has been held that a judgment E
by consent or default is as effective an estoppel between the parties
as a judgment whereby the Court exercises its mind on a contested
case. Upholding the judgment of Vaughan Williams,J Lord Herschell
said at page 50 :-

"The truth is, a judgment by consent is intended to put a stop to F
litigation between the parties just as much as is a judgment which
results from the decision of the Court after the matter has been
fought out to the end.

And I think it would be very mischievous if one were not to
give a fair and reasonable interpretation to such judgments, and
G
were to allow questions that were really involved in the action to
be fought over again in a subsequent action."
;
To the like effect are the following observations of the Judicial
H
34 SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R.

A Committee in - 'Kinch v. Walvott', [1929] AC 482 at p.493 (D):-

"First of all their Lordships are clear that in relation to this plea
of estoppel it is of no advantage to the appellant that the order in
the libel action which is said to raise it was a consent order. For
such a purpose an order by consent, not discharged by mutual
B agreement, and remaining unreduced, is as effective as an order of
the Court made otherwise than by consent and not discharged on
appeal."

The same principle has been followed by the High Courts in India in
c a number of reported decisions. Reference need only be made to the cases
of 'Secy. of State v. Ateendranath Das', 63 Cal 550 at p. 558 (E) ; -
'Bhaishanker v. Moraji', 36 Born 283 (F) and - 'Raja Kumara Venkata
Perumal Raja Bahadur' v. Thatha Ramasamy Chetty', 35 Mad 75 (G). In
the Calcutta case after referring to the English decisions the High Court
observed as follows :
D
"On this authority it becomes absolutely clear that the consent
order is as effective as an order passed on contest, not only with.
reference to the conclusion arrived at in the previous suit but also
with regard to every step in the process of reasoning on which the
said conclusion is founded.
E
When we say "every step in the reasoning" we mean the
findings on the essential facts on which the judgment or the ultimate
conclusion was founded. In other words the finding which it was
necessary to arrive at for the purpose of sustaining the judgment in
F the particular case will operate as estoppel by judgment."

The Civil Procedure Code contains the following provisions:

"Order 23 Rule 3 provides for compromise of suit - where it is
proved to the satisfaction of the Court that a suit has been adjusted
G wholly in part by any lawful agreement or compromise, written and
signed by the parties. The Court after satisfying itself about the
settlement, it can convert the settlement into a judgment decree."

We have already discussed about the steps taken by the appellant to
H serve notice on the respondent and the steps taken by him to perform his
P.T. THOMAS v. THOMS JOB [LAKSHMANAN, J.] 35

obligations and sending of the notice and telegra1n etc. \Vould not have been A
done unless the appellant was ready with his obligations and the money all .
along. The appellant had waited till almost the last day for the respondent
to perform his obligations. The High Court, in our view, has failed to note
that the courts attempt should be to give life and enforceability to the
compromise award and not to defeat it on technical grounds. This is a fit
case, in our view, where the Respondent ought to have been directed to
B
execute the sale deed by the extended time, if necessary. The High Court
is also not correct in holding that the Court has no jurisdiction to extend the
time. In our view, the learned Subordinate Judge has rightly extended the
• time for depositing the money which the High Court has wrongly interfered
with. C

We, therefore, hold that the order passed by th~ High Court in C.R.P.
l 136/2003 is liable to be set aside. We do so accordingly. We direct the
Respondent herein to execute the sale deed within two weeks from today
failing which the Appellant could get the sale deed executed though court
as stipulated in the award. The respondent is now entitled to withdraw Rs.
D
9.5 lakhs from the Sub-Court Alapuzha. Though this is a fit case for awarding
cost, we refrain from doing so in view of the relationship between the parties.

The appeal is allowed. No costs.
E
v.s.s. Appeal allowed.

'