reference of dispute to Lok Adalat

It is evident from the said provisions that Lok Adalats have no
adjudicatory or judicial functions. Their functions relate purely to
conciliation. A Lok Adalat determines a reference on the basis of a
compromise or settlement between the parties at its instance, and put its seal
of confirmation by making an award in terms of the compromise or
settlement. When the Lok Adalat is not able to arrive at a settlement 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.

But we find that many sitting or retired Judges, while participating in
Lok Adalats as members, tend to conduct Lok Adalats like courts, by
hearing parties, and imposing their views as to what is just and equitable, on
the parties. Sometimes they get carried away and proceed to pass orders on
merits, as in this case, even though there is no consensus or settlement. Such
acts, instead of fostering alternative dispute resolution through Lok Adalats,
will drive the litigants away from Lok Adalats. Lok Adalats should resist
their temptation to play the part of Judges and constantly strive to function
as conciliators. The endeavour and effort of the Lok Adalats should be to
guide and persuade the parties, with reference to principles of justice, equity
and fair play to compromise and settle the dispute by explaining the pros and
cons, strength and weaknesses, advantages and disadvantages of their
respective claims.