High Court of Karnataka Quashes Lok Adalat Award in BSNL Dues Dispute — Lack of Consent Invalidates Compromise. Permanent Lok Adalat Cannot Pass Award Without Parties' Consent Under Section 22C of Legal Services Authorities Act, 1987.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, M/s. Mac Charles (I) Ltd, a company registered under the Companies Act, 1956, had subscribed to telephone lines from the respondent, Bharat Sanchar Nigam Ltd (BSNL), for its business needs. The petitioner was regularly making payments of bills raised by BSNL. A dispute arose between the parties regarding certain dues concerning a bill for the year 1989. The respondent filed a petition before the Additional Permanent Lok Adalat at Bangalore in PLA Petition No.7799/2012. The Lok Adalat passed an order dated 21.05.2013 allowing the respondent's application. The petitioner challenged this order by filing a writ petition under Articles 226 and 227 of the Constitution of India. The petitioner contended that the Lok Adalat passed the award without the consent of the petitioner, which is mandatory under Section 22C of the Legal Services Authorities Act, 1987. The respondent argued that the Lok Adalat had jurisdiction to pass the award. The court examined the provisions of the Legal Services Authorities Act, 1987, particularly Section 22C, which requires that a Permanent Lok Adalat can only pass an award if the parties agree to it. The court found that the impugned order was passed without the consent of the petitioner, and therefore, the Lok Adalat acted without jurisdiction. The court held that such an award is not sustainable in law. Consequently, the court allowed the writ petition, quashed the impugned order dated 21.05.2013 passed by the Additional Permanent Lok Adalat in PLA Petition No.7799/2012, and directed the parties to appear before the Lok Adalat for a fresh consideration, if they so choose.

Headnote

A) Permanent Lok Adalat - Jurisdiction - Consent Requirement - Section 22C of Legal Services Authorities Act, 1987 - The Permanent Lok Adalat cannot pass an award without the consent of both parties. The award passed without consent is without jurisdiction and liable to be quashed. (Para 5)

B) Writ Jurisdiction - Maintainability - Articles 226 and 227 of Constitution of India - A writ petition is maintainable against an order of the Permanent Lok Adalat passed without jurisdiction, as it is a quasi-judicial authority. (Para 1)

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Issue of Consideration

Whether the Permanent Lok Adalat can pass an award without the consent of the parties, and whether such an award is sustainable in law.

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Final Decision

Writ petition allowed. Impugned order dated 21.05.2013 passed by the Additional Permanent Lok Adalat in PLA Petition No.7799/2012 is quashed. Parties directed to appear before the Lok Adalat for fresh consideration if they so choose.

Law Points

  • Permanent Lok Adalat cannot adjudicate disputes without consent of parties
  • Section 22C of Legal Services Authorities Act
  • 1987 requires consent for award
  • Writ petition maintainable against Lok Adalat order without consent
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Case Details

2019 LawText (KAR) (02) 39

Writ Petition No.29708 of 2013 (GM-RES)

2019-02-14

H. T. Narendra Prasad

B.S. Satyanand for petitioner, Y. Hariprasad for respondent

M/s. Mac Charles (I) Ltd

M/s. Bharat Sanchar Nigam Ltd

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Nature of Litigation

Writ petition challenging order of Permanent Lok Adalat

Remedy Sought

Quashing of order dated 21.05.2013 passed by Additional Permanent Lok Adalat in PLA Petition No.7799/2012

Filing Reason

Lok Adalat passed award without consent of petitioner

Previous Decisions

Additional Permanent Lok Adalat allowed respondent's application on 21.05.2013

Issues

Whether the Permanent Lok Adalat can pass an award without the consent of the parties? Whether the impugned order is sustainable in law?

Submissions/Arguments

Petitioner argued that the Lok Adalat passed the award without its consent, which is mandatory under Section 22C of the Legal Services Authorities Act, 1987. Respondent argued that the Lok Adalat had jurisdiction to pass the award.

Ratio Decidendi

A Permanent Lok Adalat cannot pass an award without the consent of the parties. Any award passed without consent is without jurisdiction and liable to be quashed.

Judgment Excerpts

The Permanent Lok Adalat cannot pass an award without the consent of the parties. The impugned order is passed without jurisdiction and is not sustainable in law.

Procedural History

Respondent filed PLA Petition No.7799/2012 before Additional Permanent Lok Adalat, which allowed it on 21.05.2013. Petitioner challenged this order by filing Writ Petition No.29708/2013 before High Court of Karnataka.

Acts & Sections

  • Legal Services Authorities Act, 1987: 22C
  • Constitution of India: 226, 227
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High Court High Court of Karnataka Quashes Lok Adalat Award in BSNL Dues Dispute — Lack of Consent Invalidates Compromise. Permanent Lok Adalat Cannot Pass Award Without Parties' Consent Under Section 22C of Legal Services Authorities Act, 1987.
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