UPSC Mains — Previous Year Question
Question
Explain and distinguish between Lok Adalats and Arbitration Tribunals. Whether they entertain civil as well as criminal cases?
Model Answer
Lok Adalats and Arbitration Tribunals are established Alternative Dispute Resolution (ADR) mechanisms in India designed to relieve case backlogs in traditional courts, promote speedy dispute resolution, and lower litigation expenses. However, they operate under distinct statutory frameworks, procedural methods, and jurisdictions.
Distinction Between Lok Adalats and Arbitration Tribunals
| Dimension | Lok Adalat | Arbitration Tribunal |
|---|---|---|
| Governing Statute | Constituted under the Legal Services Authorities Act, 1987 as statutory bodies. | Governed by the Arbitration and Conciliation Act, 1996 (amended in 2015, 2019, 2021). |
| Nature of Proceeding | Conciliatory and consensual; members facilitate mutual settlement between parties. | Adjudicatory; arbitrators act as private judges to deliver binding decisions (awards). |
| Composition | Chaired by a sitting or retired judicial officer with a lawyer and a social worker as members. | Arbitrators appointed mutually by disputing parties or designated arbitral institutions. |
| Cost and Fees | No court fees; court fees already paid in formal courts are refunded upon settlement. | Involves arbitrator fees and administrative costs paid by the disputing parties. |
| Finality and Appeal | Award is deemed a decree of a civil court; no appeal lies against a settlement award. | Arbitral award can be challenged under Section 34 on grounds of patent illegality or public policy. |
| Dispute Profile | Focuses on small civil claims, motor accident claims, marital issues, and utility disputes. | Primarily handles high-value domestic, corporate, and international commercial contracts. |
Jurisdiction Over Civil and Criminal Matters
- Lok Adalats:
- Civil Jurisdiction: Fully empowered to settle land disputes, matrimonial settlements, partition suits, and consumer claims pending in court or at pre-litigation stages.
- Criminal Jurisdiction: Restricted strictly to compoundable criminal offenses (e.g., cheque bounce cases under Section 138 of NI Act, minor assaults under Section 320 CrPC/BNSS). Lok Adalats have no power over non-compoundable offenses affecting public order.
- Arbitration Tribunals:
- Civil Jurisdiction: Enjoys wide jurisdiction over arbitral commercial and contractual matters.
- Criminal Jurisdiction: Zero criminal jurisdiction. Criminal offenses involve public rights, prosecution by the State, and sovereign punitive powers that cannot be referred to private arbitration (reaffirmed in Booz Allen & Hamilton Inc. v. SBI Home Finance Ltd.).
While Lok Adalats promote accessible, community-level justice, Arbitration Tribunals offer specialized resolution for commercial disputes, together reducing litigation delays in the judiciary.