Bombay High Court Holds Denial of Cross-Examination by Permanent Lok Adalat Violative of Natural Justice Under Section 22-D, Legal Services Authorities Act, 1987. Permanent Lok Adalat's Order Fails as It Violated Section 22-D by Not Providing Opportunity to Cross-Examine Witness Despite Disputed Documents.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

This writ petition under Articles 226 and 227 of the Constitution of India challenged an order dated 27 December 2017 passed by the Permanent Lok Adalat, Mumbai District, Bandra, Mumbai, allowing the respondent's application for recovery of Rs.23,981 on account of a telecom bill. The petitioner, Bindu Narang, had purchased a SIM card from respondent No.1, Matrix Cellular (International) Services Pvt. Ltd., on 14 December 2014 for a fixed plan of Rs.3,500 while travelling to Dubai. The duration was from 14 December 2014 to 21 December 2014. She received a bill dated 30 December 2014 demanding Rs.28,543, later increased to Rs.29,143. The respondent filed Application No. 8343 of 2015 before the Permanent Lok Adalat claiming Rs.23,981. The petitioner filed a written statement in February 2016, alleging that the Customer Agreement Form did not bear her signature and documents lacked her photograph. In June 2017, she applied for cross-examination of the respondent's witness, Mr. Kalpesh Tankaria, who had filed an affidavit of claim. The application was rejected on 26 September 2017 by a single member without reasons. The Permanent Lok Adalat then passed the impugned order on 27 December 2017, allowing the claim and directing payment of Rs.23,981 with 6% interest per annum. The High Court noted that the impugned order did not refer to the cross-examination application or give reasons for its rejection. Under Section 22-D of the Legal Services Authorities Act, 1987, the Permanent Lok Adalat is bound by principles of natural justice, objectivity, fair play, equity and other principles of justice, though not by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. The Supreme Court in Adam Timber Industries v. Commissioner of Central Excise, Kolkata-II had held that denial of cross-examination would render an order a nullity and violate natural justice. The Rajasthan High Court in Jodhpur Vidyut Vitran Nigam Limited v. Suresh Kumar & Anr. had similarly held that when conflicting affidavits are filed, the right to cross-examine is part of fair play. The High Court found that discrepancies in documents, such as the Customer Agreement Form not bearing the petitioner's signature, were raised before the Permanent Lok Adalat. The court held that denial of cross-examination without reasons was contrary to principles of natural justice and fair play under Section 22-D. The final operative order is not present in the provided excerpt, but the court's reasoning indicates the impugned order was unsustainable.

Headnote

A) Legal Services Authority - Permanent Lok Adalat Procedure - Section 22-D, Legal Services Authorities Act, 1987 - Permanent Lok Adalat shall be guided by principles of natural justice, objectivity, fair play, equity and other principles of justice and not bound by CPC and Evidence Act; denial of cross-examination without reasons in contested factual dispute violates natural justice - The petitioner sought cross-examination of respondent's witness who filed affidavit and documents; Permanent Lok Adalat rejected application without reasons; High Court held that denial of cross-examination on disputed documents and claims violates fair play and Section 22-D, rendering the impugned order unsustainable (Paras 13-19).

B) Evidence - Cross-Examination - Right to Cross-Examine as Part of Fair Play - Section 22-D, Legal Services Authorities Act, 1987 - Even though Indian Evidence Act not applicable, right to cross-examination is part of fair play; when conflicting affidavits are filed, opportunity to test veracity must be given; summary procedure does not per se require cross-examination but serious disputes demand it - Rajasthan High Court decision in Jodhpur Vidyut Vitran Nigam Limited v. Suresh Kumar & Anr. followed; discrepancies in documents highlighted by petitioner show need for cross-examination; Supreme Court in Adam Timber Industries v. Commissioner of Central Excise, Kolkata-II held denial of cross-examination renders order nullity (Paras 15-20).

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Issue of Consideration

Whether denial of an application for cross-examination of the respondent's witness by the Permanent Lok Adalat without recording reasons violates Section 22-D of the Legal Services Authorities Act, 1987 and principles of natural justice; whether the impugned order of the Permanent Lok Adalat allowing recovery is sustainable in light of such denial and discrepancies in documents.

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Final Decision

The High Court held that denial of cross-examination by the Permanent Lok Adalat, without recording reasons, was contrary to principles of natural justice and fair play as mandated by Section 22-D of the Legal Services Authorities Act, 1987. The impugned order was found unsustainable on this ground. (Final operative order not included in the provided excerpt.)

Law Points

  • Permanent Lok Adalat under Section 22-D of Legal Services Authorities Act
  • 1987 must be guided by principles of natural justice
  • objectivity
  • fair play
  • equity and other principles of justice
  • not bound by Code of Civil Procedure
  • 1908 and Indian Evidence Act
  • 1872
  • denial of cross-examination without reasons in contested factual disputes violates natural justice
  • right of cross-examination is part of fair play
  • when credibility is in doubt or version is disputed
  • opportunity to cross-examine must be afforded
  • summary proceedings do not require elaborate Evidence Act procedure but serious disputes demand cross-examination
  • Section 22-D obliges Permanent Lok Adalat to follow fair procedure.
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Case Details

2025 LawText (BOM) (07) 130

Writ Petition No. 2977 of 2018

2025-07-14

M.S. Sonak, Jitendra Jain

2025:BHC-OS:10931-DB

Mr. Huzefa Khokhawala i/b M/s. Nankani & Associates, for the Petitioner

Bindu Narang

1. Matrix Cellular (International) Services Pvt. Ltd.; 2. State of Maharashtra, through Government Pleader

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution challenging an order of the Permanent Lok Adalat allowing recovery of a telecom bill amount.

Remedy Sought

Petitioner sought quashing/setting aside of the Permanent Lok Adalat order dated 27 December 2017 directing payment of Rs.23,981 with interest.

Filing Reason

Permanent Lok Adalat allowed respondent's application for recovery despite petitioner's request for cross-examination being rejected without reasons and despite discrepancies in documents.

Previous Decisions

Permanent Lok Adalat, Mumbai District, Bandra, Mumbai passed order dated 27 December 2017 allowing Application No. 8343 of 2015 and directing petitioner to pay Rs.23,981 with 6% interest; petitioner's application for cross-examination was rejected on 26 September 2017 by a single member; ad-interim relief granted on 29 March 2019 subject to deposit; petition admitted on 17 July 2019.

Issues

Whether denial of cross-examination by Permanent Lok Adalat without recording reasons violates Section 22-D of Legal Services Authorities Act, 1987 and principles of natural justice? Whether the Permanent Lok Adalat's order allowing recovery is sustainable when the Customer Agreement Form did not bear petitioner's signature and other discrepancies existed?

Submissions/Arguments

Petitioner: Documents annexed by respondent had discrepancies; Customer Agreement Form did not bear petitioner's signature; no photograph; cross-examination application rejected without reasons; impugned order did not discuss rejection; denial contrary to natural justice. Respondent: Receipt of service not disputed; computerised data produced under Section 65B of Indian Evidence Act showed data usage; bill amount as per agreement and tariff; claim allowed.

Ratio Decidendi

A Permanent Lok Adalat under Section 22-D of the Legal Services Authorities Act, 1987, though not bound by CPC and Evidence Act, must follow principles of natural justice, objectivity, fair play, equity. When there are serious factual disputes, especially conflicting affidavits, a party must be given opportunity to cross-examine witnesses. Denial of such opportunity without reasons violates natural justice and vitiates the order.

Judgment Excerpts

The said Section provides that the PLA shall be guided by the principles of natural justice, objectivity, fair play, equity and other principles of justice and shall not be bound by the Code of Civil Procedure, 1908 and the Indian Evidence Act 1872. In our view, denial of cross-examination by the PLA on an application made by the petitioner without giving any reasons would be contrary to the principles of natural justice and fair play which as per Section 22-D, the PLA is obliged to follow. The PLA has allowed the application of the respondent on the ground that receipt of service is not disputed by the petitioner. The respondent has produced computerised data by complying with the provisions of Section 65B of the Indian Evidence Act, 1872.

Procedural History

On 14 December 2014, petitioner purchased SIM card from respondent for fixed plan Rs.3,500 for travel to Dubai. Bill dated 30 December 2014 sought Rs.28,543, later Rs.29,143. Respondent filed Application No. 8343 of 2015 before Permanent Lok Adalat claiming Rs.23,981. In February 2016, petitioner filed written statement. In June 2017, petitioner made application for cross-examination. On 26 September 2017, application rejected by single member. On 27 December 2017, Permanent Lok Adalat allowed respondent's application, directing payment of Rs.23,981 with 6% interest. Petitioner filed writ petition. On 29 March 2019, ad-interim relief granted subject to deposit. Petitioner deposited amount. On 17 July 2019, petition admitted; amount return subject to undertaking, but petitioner did not withdraw. Notice served on respondent No.1 on 14 June 2019 but it did not appear. Judgment reserved on 10 July 2025, pronounced 14 July 2025.

Acts & Sections

  • Legal Services Authorities Act, 1987: Section 22-D
  • Indian Evidence Act, 1872: Section 65B
  • Constitution of India: Article 226, Article 227
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