Supreme Court Emphasizes Jurisdictional Limits of Lok Adalats; Orders Overturned, Specific Relief Granted to Respondent.

The SC determined that the permanent Lok Adalat exceeded its jurisdiction by adjudicating a dispute on merits, which it is not authorized to do. Consequently, the orders of the Lok Adalat and the HC were set aside. The Appellant-Corporation was directed to release Rs. 1 lakh to the Respondent within eight weeks, with the Court noting that this relief is case-specific and not a precedent. The appeal was allowed without costs, underscoring the necessity for Lok Adalats to operate within their jurisdictional boundaries.

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Issues involved: Jurisdiction of permanent Lok Adalat to decide disputes on merits.

Summary:

Issue 1: Jurisdiction of permanent Lok Adalat
The permanent Lok Adalat allowed the claim of the Respondent under an Endowment Assurance Policy, despite finding no scope for compromise between the parties. The Supreme Court held that the Lok Adalat exceeded its jurisdiction by deciding the matter on merits, as it is not authorized to adjudicate disputes in such a manner. The Court set aside the orders of the Lok Adalat and the High Court, emphasizing that the Lok Adalat cannot act as a regular Court.

Issue 2: Relief granted to Respondent
The Court appreciated the Appellant-Corporation's willingness to release the claimed amount of Rs. 1 lakh to the Respondent under the Policy. The Court directed the Corporation to release the amount within eight weeks, acknowledging their cooperation. However, the Court clarified that this relief is specific to the current case and should not be considered a precedent.

In conclusion, the appeal was allowed with no costs imposed, highlighting the importance of adhering to the jurisdictional limits of the Lok Adalat and ensuring that it functions within its designated scope.

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