Oriental Insurance Co. Ltd. vs Chairman, Lok Adalat Cum Member, Mact

N.C. Jain, J.—This petition has been filed by the Insurance Co. against the order of the Lok Adalat granting Rs. 3 lacs to the injured. The impugned order reads as under :

"Seen the case records. The case has been dragging in the court for a very long time. Even interim award has not been passed. Seen the claimant personally. Was examined by District Medical Officer in Lok Adalat who opined which is that the claimant has suffered 25% disability. Claimant has claimed Rs. 3 lac as compensation not agreeable to defendant. No cash amount will be able to compensate the loss of earning capacity of the claimant and also the mental torture and agony suffered by the claimant. Even then an amount of Rs. 3 lacs is ordered as final award to be paid to the claimant. The amount be paid within three months.

The date of next hearing will be intimated later on."

Since the very foundation of the Lok Adalat is based on the settlement of cases by compromise only, the learned Deputy Commissioner exceeded his jurisdiction in passing the impugned award when the Insurance Co. was not agreeable to give a sum of Rs. 3 lacs. Every award of the Lok Adalat would be deemed to be a decree of a Civil court within the meaning and ambit of Section 21 of the Legal Services Authorities Act, 1987, but such an award has to be based upon the compromise between the parties. This is what is precisely the mandate of Section 21. Consequently, the learned Deputy Commissioner has acted illegally in exercise of his jurisdiction in passing the impugned award which is hereby set aside.

At this stage, the counsel for the claimant has submitted that his client has not been given interim award of Rs. 25,000 which should have been done, as he has suffered from permanent disability to the tune of 25%. Normally, even this order has to be passed by the Tribunal, but this court in exercise of its appellate or power can always pass an appropriate order which would serve the ends of justice. Consequently, I hereby direct the Insurance Co. to pay a sum of Rs. 25,000 to the claimant within a period of one month from today. The parties through their counsel directed to appear before the Deputy Commissioner, Bomdila, Arunachal Pradesh on 25th September, 2000. The Deputy Commissioner will proceed in accordance with law. The Deputy Commissioner is directed to disposes of the case, if possible, within a period of 3 months from the date of appearance of the parties.