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 before the High Court of Karnataka. The main legal issue was whether the Permanent Lok Adalat had jurisdiction to pass an award without the consent of the parties. The petitioner argued that the award was passed without its consent and therefore was invalid. The respondent contended that the Lok Adalat had the power to adjudicate. The court analyzed the provisions of the Legal Services Authorities Act, 1987, particularly Section 22C, which requires the consent of both parties for the Lok Adalat to adjudicate. The court held that the Permanent Lok Adalat cannot adjudicate a dispute without the consent of the parties. Since the award was passed without the petitioner's consent, it was unsustainable. The court allowed the writ petition, quashed the impugned order dated 21.05.2013, and set aside the award.
Headnote
A) Permanent Lok Adalat - Jurisdiction - Consent of Parties - Section 22C of Legal Services Authorities Act, 1987 - The Permanent Lok Adalat cannot adjudicate a dispute and pass an award without the consent of both parties. The award passed in PLA Petition No.7799/2012 by the Additional Permanent Lok Adalat, Bangalore, was set aside as it was passed without the consent of the petitioner. (Paras 4-6) B) Writ Jurisdiction - Articles 226 and 227 of Constitution of India - Quashing of Lok Adalat Award - The High Court, in exercise of its writ jurisdiction, can quash an award passed by a Permanent Lok Adalat that is without jurisdiction or in violation of principles of natural justice. (Para 1)
Issue of Consideration
Whether the Permanent Lok Adalat has jurisdiction to pass an award adjudicating a dispute without the consent of the parties, and whether such an award is sustainable in law.
Final Decision
The writ petition is allowed. The impugned order dated 21.05.2013 passed in PLA Petition No.7799/2012 by the Additional Permanent Lok Adalat at Bengaluru is quashed.
Law Points
- Permanent Lok Adalat cannot adjudicate disputes without consent of parties
- Section 22C of Legal Services Authorities Act
- 1987
- Writ jurisdiction under Articles 226 and 227 of Constitution of India
