Court Reaffirms Requirement for Proper Conciliation Under Legal Services Authority Act, 1987
In a significant judgment, the Allahabad High Court, presided over by Justice Saurabh Shyam Shamshery, has set aside an order issued by the Permanent Lok Adalat. The case involved The Oriental Insurance Company Limited as the petitioner against Lalta Prasad Sharma and others. The court found that the Permanent Lok Adalat failed to adhere to the mandatory conciliation process as outlined under Section 22-C of the Legal Services Authority Act, 1987.
During the proceedings, the counsel for the petitioner, Ankur Mehrotra, argued that the Permanent Lok Adalat only made a general reference to conciliation, which was legally insufficient. This contention was supported by the precedent set in the 2021 case of Manager Life Insurance Corporation of India, Basti v. Permanent Lok Adalat, Basti, where it was held that compliance with the conciliation process is essential.
The court noted the absence of a structured conciliation attempt and agreed with the petitioner's arguments. Despite attempts by the State-Respondents' counsel, C.S.C., to counter these claims, the court found that the Permanent Lok Adalat’s actions did not meet the statutory requirements.
Consequently, the impugned order dated 21.01.2026 was annulled, and the matter was remitted for fresh consideration, ensuring that proper conciliation efforts are undertaken. This decision underscores the judiciary's commitment to ensuring adherence to legal procedures, particularly those involving alternative dispute resolution mechanisms like the Permanent Lok Adalat.
Bottom line:-
The Permanent Lok Adalat must follow the requirement of conciliation as provided under Section 22-C of the Legal Services Authority Act, 1987, and a general reference is not legally sufficient for compliance.
Statutory provision(s): Legal Services Authority Act, 1987, Section 22-C
Oriental Insurance Company Limited v. Lalta Prasad Sharma, (Allahabad) : Law Finder Doc id # 2935777
