Understanding National Lok Adalat: Mechanism, Challenges, and Future Outlook

Introduction: The Need for Alternative Dispute Resolution

India's judicial system is overburdened. With over 5 crore pending cases (as per data from the National Judicial Data Grid), justice delivery has become delayed and expensive for the average citizen. Especially for people in rural areas or those from low-income backgrounds, formal litigation feels inaccessible. To address these challenges, Lok Adalats (People’s Courts) were introduced as an innovative way to settle disputes amicably, outside the rigid and time-consuming framework of formal courts.

Among these, the National Lok Adalat, conducted under the aegis of the National Legal Services Authority (NALSA), stands out as one of the most efficient and inclusive mechanisms for access to justice. Held periodically across all levels of the judiciary, it is a platform to resolve large volumes of cases quickly, free of cost, and in a spirit of conciliation.

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What is National Lok Adalat?

“Lok Adalat” translates to “People’s Court” in Hindi. It is a statutory forum for settlement of disputes through mutual agreement and without resorting to traditional courtroom litigation. National Lok Adalats are periodically organized by NALSA in association with the State Legal Services Authorities (SLSAs), District Legal Services Authorities (DLSAs), and High Courts.

They are held nationwide on pre-determined dates and deal with a variety of civil and compoundable criminal cases. The key feature? Both parties must agree to the settlement. Once agreed upon, the order passed by a Lok Adalat has the status of a civil court decree and is final and binding, with no further appeal permitted.

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Legal Backing and Framework

The authority for Lok Adalats, including the National Lok Adalat, comes from the Legal Services Authorities Act, 1987, particularly under Sections 19 to 22B. Additionally, Section 89 of the Code of Civil Procedure, 1908, encourages settlement of disputes through alternative methods, including Lok Adalat.

Also, Section 21 of the Act explicitly states that every award of a Lok Adalat shall be deemed to be a decree of a civil court and shall be final and binding on all the parties.

How Does National Lok Adalat Work? A Step-by-Step Mechanism

The process followed in National Lok Adalats is informal, accessible, and extremely user-friendly. Here's how it works:

Step 1: Identification of Cases

Cases eligible for compromise—such as civil disputes, family issues, motor accident claims, cheque bounce cases under Section 138 of the NI Act, and compoundable criminal cases—are identified.

These can be:

1. Pre-litigation cases (before filing in court)

2. Pending cases already in court

Step 2: Issuance of Notices

Notices are sent to the parties concerned, informing them about the date and venue of the National Lok Adalat and seeking their consent for amicable settlement.

Step 3: Formation of Benches

Each Lok Adalat bench typically consists of:

1. A sitting or retired judicial officer

2. A legal practitioner

3. A social worker or mediator

This panel facilitates dialogue and negotiation between the parties.

Step 4: Conciliation and Dialogue

The panel facilitates open discussions between the parties. Their aim is to help both sides reach a compromise voluntarily. No adjudication happens. Instead, conciliation is promoted through persuasion and mediation.

Step 5: Recording the Settlement

If both parties agree, a settlement deed is drawn up, signed, and sealed by the panel.

Step 6: Binding Order

The final settlement is passed as a court decree, which is binding and non-appealable under the Legal Services Authorities Act.

Step 7: Cost-Free Justice

There is no court fee, and if a case has already been filed in court, the fee originally paid is refunded.

Key Features of National Lok Adalat

Types of Cases Resolved by National Lok Adalat

National Lok Adalats can hear and dispose of a wide variety of cases, including:

• Motor Vehicle Accident Claims
  Compensation disputes involving insurance claims and traffic accidents.

• Family Disputes
  Maintenance, divorce by mutual consent, and domestic disputes.

• Cheque Bounce Cases
  Under Section 138 of the Negotiable Instruments Act.

• Money Recovery Disputes
  Personal loans, commercial recoveries, and credit defaults.

• Labour and Employment Disputes
  Unpaid wages, wrongful termination, compensation issues.

• Public Utility Services Disputes
  Billing issues related to electricity, water, or telecommunication.

• Compoundable Criminal Offences
  Minor offences that are legally allowed to be settled out of court.

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Advantages of National Lok Adalat

1. Speedy Justice

Cases that would otherwise drag on for years in courts can be resolved in a single day.

2. Reduced Court Backlog

Thousands of cases are settled in a single day across the country, reducing the judicial burden significantly.

3. Cost-Effective

No lawyer fees, court costs, or lengthy litigation. For litigants, this means access to justice at no cost.

4. Friendly Atmosphere

The environment is more informal than a courtroom, encouraging open dialogue and amicable resolution.

5. No Technicalities

Procedural and evidentiary rules of traditional courts are not rigidly followed, making it accessible to the common man.

6. Finality of Award

The decision is binding and not subject to appeal, offering closure.

Real Impact: Recent Statistics

According to the NALSA Annual Report 2024, the following were recorded:

1. Over 1 crore cases (including pre-litigation and pending) were settled in a single National Lok Adalat held in November 2024.

2. An estimated ₹6,000 crore worth of settlements were achieved nationwide.

3. Many of the beneficiaries were from rural areas and economically weaker sections.

This demonstrates how National Lok Adalats are a true vehicle for accessible and inclusive justice.

Challenges Faced by National Lok Adalat

Despite the advantages, National Lok Adalat faces several operational and legal challenges:

1. Limited Scope

It can only deal with compoundable and civil disputes. Non-compoundable criminal offences, constitutional matters, and complex legal disputes are outside its jurisdiction.

2. Lack of Public Awareness

Many people, especially in rural and semi-urban areas, are unaware of their right to use Lok Adalats for resolving disputes.

3. Voluntary Nature

Since participation is voluntary, if either party refuses to settle, the case is referred back to the regular court.

4. Quality of Settlement

Some critics argue that the pressure to settle large volumes of cases may result in hasty or unfair compromises.

5. Follow-Up Mechanism

Post-settlement enforcement and compliance monitoring mechanisms are weak.

Future Outlook: Strengthening the Institution

The National Lok Adalat model is one of the most scalable dispute resolution systems in the world. To make it stronger and more efficient:

1. Technological Integration

NALSA is planning to introduce e-Lok Adalats and video conferencing options, ensuring even broader reach.

2. Capacity Building

Training more mediators, legal aid volunteers, and judicial officers can enhance efficiency.

3. Public Awareness Campaigns

Government and NGOs must collaborate on legal literacy drives to make people aware of Lok Adalats as a viable option.

4. Data-Driven Governance

Maintaining detailed digital records, settlement rates, and follow-up data can help assess impact and improve delivery.

5. Legal Reforms

Amending the Legal Services Authorities Act to expand the scope of cases or allow hybrid settlements could be a game changer.

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Conclusion: Justice for the People, By the People

National Lok Adalats exemplify the constitutional promise of access to justice for all. They are a transformative effort to democratize the legal system, making justice faster, cheaper, and more inclusive. As the Indian judiciary faces increasing pressures, the role of National Lok Adalat will only grow in importance.

By empowering citizens, reducing court backlogs, and offering speedy dispute resolution, National Lok Adalats are not just legal innovations—they are instruments of social justice.