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Issues: (i) Whether conciliation proceedings before a Permanent Lok Adalat under Section 22-C of the Legal Services Authorities Act, 1987 are mandatory; (ii) Whether Permanent Lok Adalats adjudicatory functions under the Legal Services Authorities Act, 1987.
Issue (i): Whether conciliation proceedings before a Permanent Lok Adalat under Section 22-C of the Legal Services Authorities Act, 1987 are mandatory.
Analysis: Section 22-C lays down a staged procedure beginning with the application, exchange of pleadings and documents, and then conciliation. The statutory scheme makes settlement the primary object and permits adjudication on merits only after conciliation efforts fail. The structure of Section 22-C(4) to 22-C(8), read with the legislative purpose of Chapter VI-A, shows that conciliation is not optional. Even where a party does not appear, the Permanent Lok Adalat must still attempt conciliation and formulate possible terms of settlement before proceeding to decide the dispute on merits.
Conclusion: Yes. Conciliation proceedings are mandatory, and a Permanent Lok Adalat cannot bypass them merely because one party is absent.
Issue (ii): Whether Permanent Lok Adalats under the Legal Services Authorities Act, 1987 have adjudicatory functions.
Analysis: The Act draws a clear distinction between Lok Adalats under Chapter VI and Permanent Lok Adalats under Chapter VI-A. While ordinary Lok Adalats are limited to compromise and settlement, Permanent Lok Adalats are expressly empowered, after failed conciliation, to decide disputes on merits under Section 22-C(8). Section 22-D also contemplates deciding disputes on merit, and the award under Section 22-E is final and binding. The adjudicatory power is therefore a statutory feature of Permanent Lok Adalats, subject to compliance with the prescribed conciliation procedure.
Conclusion: Yes. Permanent Lok Adalats do have adjudicatory functions, though only after the mandatory conciliation process fails.
Final Conclusion: The impugned award could not stand because the statutory conciliation procedure was not followed, but the view that Permanent Lok Adalats lack adjudicatory power was incorrect. The award setting aside result was therefore maintained.
Ratio Decidendi: A Permanent Lok Adalat must first complete the statutory conciliation process under Section 22-C, and only on failure of settlement may it decide the dispute on merits; unlike an ordinary Lok Adalat, it has a limited adjudicatory role conferred by statute.
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