High Court emphasizes that Lok Adalat awards are only binding on parties involved in the settlement, dismisses challenge by third-party petitioners.
In a significant ruling, the Andhra Pradesh High Court has reinforced the legal principle that awards passed by Lok Adalats are binding solely on the parties involved in the settlement and their legal representatives, dismissing a writ petition filed by individuals who were not parties to the original Lok Adalat proceedings.
The division bench, comprising Justices Mr. Ravi Nath Tilhari and Purushottam Kumar Chintalapudi, delivered its judgment on July 30, 2026, in the case of K.N. Balananda Reddy v. Lok Adalat Bench at Thamballapalle. The petitioners, K.N. Balananda Reddy and another, had sought to challenge the Lok Adalat Award No.36 of 2023, dated September 9, 2023, which was related to a suit for specific performance of a sale agreement.
The petitioners contended that the award, concerning the property subject to their own pending litigation, could adversely impact their interests. However, the court highlighted that the petitioners were neither parties to the suit O.S. No.145 of 2023, nor to the Lok Adalat proceedings, and as such, lacked the legal standing to challenge the award.
Referencing past judgments, the court reiterated that third parties who are not privy to the Lok Adalat settlement cannot challenge its validity. The court cited the precedent set in Vadiga Amose v. Vadiga Anjineyulu, asserting that only parties directly involved in the settlement can contest a Lok Adalat award, and even then, only under specific circumstances such as fraud or misrepresentation.
The bench further clarified that the apprehensions of the petitioners regarding potential adverse effects on their pending suits were unfounded. The court assured that their rights in these suits would be adjudicated independently and in accordance with the law, unaffected by the Lok Adalat award.
In conclusion, the High Court dismissed the writ petition, maintaining the integrity of the Lok Adalat process and underscoring the binding nature of its awards on involved parties only. The ruling serves as a reminder of the Lok Adalat's role in facilitating amicable dispute resolution and the limited scope for challenging its awards by external parties.
Bottom Line :
Lok Adalat award is binding only on the parties to the settlement and their legal representatives. Third parties who are not part of the settlement cannot challenge such awards.
Statutory provision(s): Legal Services Authorities Act, 1987
