NDLI: Canara Bank Vs. G S Jayarama

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Legal Services Authorities Act 1987: s. 22-C – Cognizance of cases by Permanent Lok Adalat
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Legal Services Authorities Act 1987: s. 22-C – Cognizance of cases by Permanent Lok Adalat – Conciliation proceedings u/s. 22-C, nature of – Permanent Lok Adalat, if has adjudicatory functions the under the Act – Held: Conciliation proceedings u/s. 22-C are mandatory in nature – s.22-C provides a step-by-step scheme on how a matter is to proceed – First step is filing of application which ousts the jurisdiction of other civil courts – Thereafter, on parties filing requisite submissions and documents, the Permanent Lok Adalat attempts conciliation between the parties and thereafter, draws up terms of settlement and propose them to the parties – If parties agree thereto, the Permanent Lok Adalat has to pass an award and if the parties do not agree, then Permanent Lok Adalat may decide the disputes on merits as long as the dispute does not relate to an offence – Thus, the adjudication can only be made when the parties disagree to the terms of settlement formulated on the basis of the conciliation proceedings – Permanent Lok Adalats are not allowed to bypass the step – Main goal was the conciliation and settlement of disputes in relation to public utilities, with a decision on merits being the last resort – As regards, the adjudicatory functions, the Permanent Lok Adalats are the second type of Lok Adalat established u/s. 22-B in respect of utility services to carry out both conciliatory and adjudicatory functions subject to procedure followed u/s. 22-C – Lok Adalat constituted u/s. 19 cannot perform any adjudicatory function in terms of s. 20 – On facts, holding of the Single Judge and the Division Bench of the High Court that the Permanent Lok Adalat has no adjudicatory functions, and that the Permanent Lok Adalats cannot act as a regular civil court in adjudicating the dispute between the parties, is clearly incorrect, however, the Division Bench rightly held that the Permanent Lok Adalat failed to follow the mandatory conciliation proceedings since the award of the Permanent Lok Adalat does not indicate any attempt made by it to propose terms of settlement to the parties and their rejection – It states that once the respondent and his guarantor did not appear, it adjudicated the dispute on merits in favour of the respondent, and the Permanent Lok Adalat could not have done so and on this point the Division Bench rightly set aside the award of the Permanent Lok Adalat.
Judge	Hon'ble Dr. Justice D.Y. Chandrachud
Neutral Citation	2022 INSC 597
Petitioner	Canara Bank
Respondent	G S Jayarama
SCR	[2022] 4 S.C.R. 162
Judgement Date	2022-05-19
Case Number	3872

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Canara Bank Vs. G S Jayarama

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