TaxTMI 
TaxTMI 
2005 (8) TMI 721
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....lso prayed for a decree for recovery of possession. The appellant's suit was decreed as prayed for. When the matter was pending in appeal at the instance of the Respondent in the District Court, the dispute was referred to the Lok Adalat constituted under the Legal Services Authorities Act for resolution of the dispute. The matter was settled in the Lok Adalat. The award of the Lok Adalat dated 5.10.1999 provided for sale to the Appellant or his nominee of the property scheduled to the award after a period of one year and within a period of two years on payment of a sum of Rs. 9.5 lakhs to the Respondent and on default of the Respondent to execute the document, the appellant could get it executed through court. On the other hand, in case of default on the part of the appellant, he had to give up his aforesaid right and instead be entitled to be paid to Rs. 3.5 lakhs by the Respondent. The Respondent did not execute the sale deed within the time fixed despite repeated requests by the Appellant. The Appellant, therefore, sent a lawyer's notice on 3.10.2001 to the Respondent calling upon him to execute the sale deed. Respondent did not receive the notice and the notice w....
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.... submitted that the appellant also did not deposit the amount before filing the execution petition as contemplated in the award. Even when he was examined in court on 22.2.2003, he had not deposited the said amount. According to Mr. Vinod, the award of the Lok Adalat cannot be equated with a decree and it only incorporates an agreement between the parties and that in case of any violation of the said agreement, or the terms of the compromise recorded in the award, the parties lose their right to get the same executed and the compromise stands withdrawn. It is further argued that the Appellant admittedly had not produced any material to show that the Appellant had the resources to pay the said amount at any relevant point of time or that the said amount was ever offered to the respondent at any point of time and, therefore, the appellant is not entitled to any relief in this appeal. It is further submitted that there is no effective service of any notice on the Respondent before 5.10.1999 and the only endorsement is that the Respondent was absent. It is submitted that the Appellant never had the money with him and the belated payment after the order of the executing court will no....
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....fore the executing Court witnesses were examined on both sides and Exhibit A1 to A8 and B1 were produced by the respective parties. The executing court, accepting the evidence of PW 1 came to the conclusion that the notice issued requiring the respondent to execute the document as submitted in the award was not received by the Judgment debtor and it has been returned unclaimed. It is seen that notice was an attempt to be served on the Judgment debtor on 4.10.2001 and since he was absent, intimation regarding the notice has been given and the above notice has been returned as unclaimed on 19.10.2001. The Appellant after return of the Exhibit A2 notice immediately sent a telegram to the Judgment debtor on 26.1.2001. The receipt issued for the telegram and certified true copy of the telegram was marked as Exhibit A3 and A4. The Original telegram was produced on the side of the Respondent and marked as an Exhibit. By the telegram the Judgment debtor was intimated that the notice sent by the decree holder through his Advocate on 3.10.2001 was returned unclaimed and copy of that notice was being forwarded by certificate of posting and that he was always ready and willing to pay Rs. 9.5 l....
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.... had provided the amount which was deposited on 7.4.2003 and not on 8.4.2003 as assumed by the High Court. It is, thus, seen that the Appellant has performed his obligation. He had sent the notice on 3.10.2001 and it was 4.10.2001 well before the expiry of time on 5.10.2001. Though the notice was correctly addressed and despite the intimation by the post office, the notice was not accepted by the Respondent and was returned unserved. In such circumstances, the presumption of law is that the notice has been served on the Respondent. The High Court, in our view, has also misinterpreted Section 27 of the Post Office Act. The requirement of Section has been complied with in this case. The reasoning of the High Court on this issue is not correct and not in accordance with factual position. In the notice issued, the Postman has made the endorsement. This presumption is correct in law. He had given notice and intimation. Nevertheless, the respondent did not receive the notice and it was returned unserved. Therefore, in our view, there is no obligation cast on the appellant to examine the Postman as assumed by the High Court. The presumption under Section 114 of the Evidence Act operate....
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.... shall have the requisite powers to specify its own procedure for the determination of any dispute coming before it. (3) All Proceedings before a Lok Adalat shall be deemed to be judicial proceedings within the meaning of Secs. 193, 219 and 228 of the Indian Penal Code (45 of 1860) and every Lok Adalat shall be deemed to be a Civil Court for the purpose of Sec. 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2) of 1974). UNREPORTED JUDGEMENTS 2004 (2) VOL 37." What is Lok Adalat? : "The "Lok Adalat" is an old form of adjudicating system prevailed in ancient India and it's validity has not been taken away even in the modern days too. The word 'Lok Adalat' means 'People Court'. This system is based on Gandhian Principles. It is one of the components of ADR system. As the Indian Courts are over burdened with the backlog of cases and the regular Courts are to decide the cases involve a lengthy, expensive and tedious procedure. The Court takes years together to settle even petty cases. Lok Adalat , therefore provides alternative resolution or devise for expedious and inexpensive justice. In Lok Adalat proceed....
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....rties". The award of the Lok Adalat is an order by the Lok Adalat under the consent of the parties, and it shall be deemed to be a decree of the Civil Court, therefore an appeal shall not lie from the award of the Lok Adalat as under Section 96(3) C.P.C. In Punjab National Bank vs. Lakshmichand Rah reported in AIR 2000 Madhya Pradesh 301, 304, the High Court held that "The provisions of the Act shall prevail in the matter of filing an appeal and an appeal would not lie under the provisions of Section 96 C.P.C. Lok Adalat is conducted under an independent enactment and once the award is made by Lok Adalat the right of appeal shall be governed by the provisions of the Legal Services Authorities Act when it has been specifically barred under Provisions of Section 21(2), no appeal can be filed against the award under Sec.96 C.P.C." The Court further stated that "It may incidentally be further seen that even the Code of Civil Procedure does not provide for an appeal under Section 96(3) against a consent decree. The Code of Civil Procedure also intends that once a consent decree is passed by Civil Court finality is attached to it. Such finality cannot be permitted to be destroyed, par....
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....ght out to the end. And I think it would be very mischievous if one were not to give a fair and reasonable interpretation to such judgments, and were to allow questions that were really involved in the action to be fought over again in a subsequent action." To the like effect are the following observations of the Judicial Committee in 'Kinch v. Walvott', 1929 AC 482 at p.493 (D):- "First of all their Lordships are clear that in relation to this plea of estoppel it is of no advantage to the appellant that the order in the libel action which is said to raise it was a consent order. For such a purpose an order by consent , not discharged by mutual agreement, and remaining unreduced , is as effective as an order of the Court made otherwise than by consent and not discharged on appeal." The same principle has been followed by the High Courts in India in a number of reported decisions. Reference need only be made to the cases of ' Secy. Of State v. Ateendranath Das', 63 Cal 550 at p. 558 (E) ; - ' Bhaishanker v. Moraji', 36 Bom 283 (F) and ' Raja Kumara Venkata Perumal Raja Bahadur', v. Thatha Ramasamy Chetty', 35 Mad 75 (G). In th....