The Deputy Commissioner, Mysore District another vs M/s Kushal Enterprises. Writ Petition 2715/2020 and connected matters decided on 3 August 2020.
Judgment Link: http://judgmenthck.kar.nic.in/judgmentsdsp/bitstream/123456789/337740/1/WP2715-20-03-08-2020.pdf
Relevant paragraphs: 11….Permanent Lok Adalat constituted under section 22B(1) of the LSA Act is conferred with both conciliatory and adjudicatory functions; and Permanent Lok Adalat is invested with the power and jurisdiction to pass an award on merits as provided under sub-section (8) of section 22C after observing or following the procedure prescribed under section 22C of the LSA Act. Sub- section (8) of section 22C specifically provides that, “Where the parties fail to reach at an agreement under sub-section (7), the Permanent Lok Adalat shall, if the dispute does not relate to any offence, decide the dispute.”
12. The Act is silent as to whether Permanent Lok Adalat could proceed to decide the dispute ex-parte in the absence of the parties. But a conjoint reading of section 22C and section 22D of the Act which deals with the procedure of Permanent Lok Adalat, makes it evident that while conducting the conciliation proceedings or deciding a dispute on merit under the Act, Permanent Lok Adalat 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. There is nothing in the amended Chapter VIA to suggest that if any of the parties fail to respond to the notice or fail to participate in the proceedings, Permanent Lok Adalat is disabled to decide the dispute or pronounce the order. The only requirement laid down under section 22D of the amended Act is that while deciding the dispute, Permanent Lok Adalat shall be guided by the principles of natural justice, objectivity, fair play, equity and other principles of justice and nothing more. The Act does not prohibit Permanent Lok Adalat from passing any ex-parte award. If such restriction is read into the Act, it would frustrate the very object of constituting Permanent Lok Adalat, as the respondent in every case who is invariably interested in defeating the claim of the petitioner, may thwart the impending action or decision by Permanent Lok Adalat, by successfully evading service of notice or remaining absent during the conduct of the proceedings. Therefore, the argument of learned counsel for petitioners that Permanent Lok Adalat has no jurisdiction to pass exparte award does not find support from any provisions of the Act or the Rules framed thereunder.
14. …..No doubt the statute does not expressly require Permanent Lok Adalat to give reasons in support of its decision, but having assumed the jurisdiction to adjudicate the disputes touching upon the rights and liabilities of the parties, failure to give reasons would render the decision invalid for the added reason that the appellate or the revisional authority would be deprived of the opportunity to test the correctness or validity of the order passed by Permanent Lok Adalat.
Compiled by S.Basavaraj, Advocate, Daksha Legal,
Daksha Legal 