TMI Blog2008 (1) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... ts 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. But the travails continued. In view of the order dated 11.9.2002 passed by the learned single Judge holding that a petition under Article 227 has to be filed to challenge the order of the Lok Adalat, the appellants filed a petition under Article 227. But the said petition was dismissed by another single Judge on the ground that the order of Lok Adalat passed on 3.8.2001 had attained finality as the objections to it were dismissed on 11.9.2002 and a petition under Article 227 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cident. Her husband and minor son claimed compensation. The Tribunal granted ₹ 1,44,000/- along with 12 percent per annum interest. Feeling dissatisfied, they are in appeal. The deceased was doing household work and also looking after some cattle and selling milk. The tribunal fixed earning capacity at ₹ 900/- and dependency at ₹ 600/- Applying multiplier of 15, compensation was worked out at ₹ 1,08,000/-. To this a sum of ₹ 28,253 on account of medical expenses, ₹ 2147/- towards incidental charges and ₹ 5600/- towards hospital charges were allowed. We are of the opinion that the earning capacity of the household wife has been determined on the lower side. An ordinary labourer gets ₹ 1200/- per mensem and at the lowest at least ₹ 1200/- should have been determined the earning capacity of the deceased and dependency of the claimants at ₹ 800/-. The multiplier of 15 applied in this case is also on the lower side. Since the deceased was aged 32 years, as per Schedule attached to the Motor Vehicles Act, multiplier should have been 17. Thus, compensation worked out at ₹ 1,63,200/- (Rs.800/- x 12 x 17). To this a sum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 3.8.2001 passed by the Lok Adalat enhancing the compensation in favour of the claimant- respondents to the tune of ₹ 62,000/-. The order of the Lok Adalat specifically indicated that if the parties were not satisfied, they could file objections within a period of two months for the disposal of the appeal on merits in accordance with law. The petitioners-State had filed objections which were dismissed on 11.9.2002 and the order of the Lok Adalat dated 3.8.2001 had attained finality. Now the instant petition has been filed against challenging the order of the Lok Adalat dated 3.8.2001. Nothing has been pointed out showing that such a petition under Article 227 of the Constitution is maintainable. Apart from the fact that the Lok Adalat has granted time for filing the objections and the objections have been dismissed, the meager increase in the amount of compensation does not warrant any interference. In view of the above, the petition is dismissed being not maintainable. (emphasis supplied) The said order is under challenge in this appeal by special leave. 6. We are rather dismayed at the manner in which the entire matter has been dealt with, underm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lement or compromise, no award is made and the case record is returned to the court from which the reference was received, for disposal in accordance with law. No Lok Adalat has the power to hear parties to adjudicate cases as a court does. It discusses the subject matter with the parties and persuades them to arrive at a just settlement. In their conciliatory role, the Lok Adalats are guided by principles of justice, equity, fair play. When the LSA Act refers to 'determination' by the Lok Adalat and 'award' by the Lok Adalat, the said Act does not contemplate nor require an adjudicatory judicial determination, but a non-adjudicatory determination based on a compromise or settlement, arrived at by the parties, with guidance and assistance from the Lok Adalat. The 'award' of the Lok Adalat does not mean any independent verdict or opinion arrived at by any decision making process. The making of the award is merely an administrative act of incorporating the terms of settlement or compromise agreed by parties in the presence of the Lok Adalat, in the form of an executable order under the signature and seal of the Lok Adalat. 9. But we find that many sitting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at and praying that the order of the Lok Adalat increasing the compensation by ₹ 62,200 may be set aside as there was no settlement or compromise. The learned single Judge failed to notice that there was no settlement or compromise between the parties; that the order made by the Lok Adalat was not an award in terms of any settlement as contemplated under the LSA Act; that the Lok Adalat had clearly stated that the parties may either agree to it, or move the High Court for disposal of the appeal on merits in accordance with law; and that in the absence of any settlement and 'award', the appeal before the High Court continued to be pending and could not have been treated as finally disposed of. The learned single Judge instead of perusing the order of the Lok Adalat and hearing the appeal on merits, proceeded on a baseless assumption that the order dated 3.8.2001 of the Lok Adalat was a binding award and therefore an application to hear the appeal, was not maintainable and the only remedy for the appellants was to challenge the order of the Lok Adalat by filing a writ petition under Article 227 of the Constitution. 12. It is true that where an award is made by Lok Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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