Lok Adalat disposal requires a genuine compromise or settlement; absent agreement, the matter must return for adjudication.

A Lok Adalat may dispose of a referred matter only where the parties reach a genuine compromise or settlement under section 20 of the Legal Services Authorities Act, 1987. Compromise and settlement require mutual consent and adjustment; they do not permit a unilateral disposal without agreement. Where no settlement is reached, the Lok Adalat cannot finally determine the matter, and the writ petition must be restored to the court stage before reference and decided according to law.

---

---

Issues: Whether a Lok Adalat could dispose of a case in the absence of a compromise or settlement between the parties, and whether the writ petition ought to be restored for decision in accordance with law.

Analysis: Section 20 of the Legal Services Authorities Act, 1987 permits disposal by Lok Adalat only where the parties arrive at a compromise or settlement. The expressions "compromise" and "settlement" require mutual adjustment and consent, and do not cover a unilateral disposal where no agreement has been reached. Since the matter before the Lok Adalat did not result in any compromise or settlement, the disposal of the writ petition by the Lok Adalat was impermissible. In such a situation, the proper course was to restore the writ petition to the stage prior to reference and have it decided according to law.

Conclusion: The disposal by the Lok Adalat was invalid, and the writ petition was required to be restored for adjudication on merits.

Ratio Decidendi: A Lok Adalat can validly dispose of a referred matter only on the basis of a compromise or settlement between the parties; absent such mutual agreement, the reference cannot be finally determined by the Lok Adalat and the matter must return to the court for disposal in accordance with law.

---