Q.2. Explain and distinguish between Lok Adalats and Arbitration Tribunals. Whether they entertain civil as well as criminal cases? [UPSC 2024 GS P-2]

Lok Adalats and Arbitration Tribunals are both alternative dispute resolution (ADR) mechanisms in India, designed to reduce the burden on traditional courts and provide quicker, less formal dispute resolution. However, they function differently and handle different types of cases. Below is an explanation of each and a comparison between the two.

Lok Adalats (People’s Courts)

Lok Adalat is an informal system of dispute resolution in India, established under the Legal Services Authorities Act, 1987. It promotes amicable settlement of disputes between parties and is a part of the judicial framework.

Key Features of Lok Adalats:

1. Jurisdiction:
   • Lok Adalats deal with both civil cases (such as family disputes, land disputes, and property disputes) and compoundable criminal cases (minor criminal offenses).
   • They cannot entertain serious criminal cases involving non-compoundable offenses (such as murder, rape, or grievous harm).
2. Nature of Proceedings:
   • Lok Adalats are informal, and proceedings are conducted in a non-adversarial manner, promoting settlement through compromise and mutual agreement.
   • The presiding officers, who can be retired or serving judges, social workers, or legal professionals, act as facilitators rather than adjudicators.
3. Binding Nature of Decisions:
   • If a settlement is reached, the decision (or award) of the Lok Adalat is final and binding, and it has the same status as a decree of a civil court.
   • There is no appeal against the award of a Lok Adalat, making it a final decision between the parties.
4. Free Legal Aid:
   • Lok Adalats provide free legal services to those who cannot afford them, ensuring access to justice for marginalized communities.
5. No Court Fees:
   • There are no fees for approaching a Lok Adalat, making it an inexpensive and accessible means of dispute resolution.

Types of Cases Entertained by Lok Adalats:

• Civil Cases: Property disputes, matrimonial issues (like divorce by mutual consent), debt recovery, labor disputes, etc.
• Criminal Cases: Only compoundable criminal offenses, such as minor assaults, defamation, and cases under Section 138 of the Negotiable Instruments Act (cheque bounce cases).

Arbitration Tribunals

Arbitration is a formal method of dispute resolution under the Arbitration and Conciliation Act, 1996, where disputing parties agree to submit their matter to one or more arbitrators instead of approaching a court. It is typically used in commercial and contractual disputes.

Key Features of Arbitration Tribunals:

1. Jurisdiction:
   • Arbitration Tribunals primarily handle civil disputes, especially those involving commercial contracts, trade disputes, real estate matters, and construction contracts.
   • Arbitration does not apply to criminal matters, as criminal law involves public offenses and the state’s authority, which cannot be arbitrated privately.
2. Nature of Proceedings:
   • Arbitration is a formal process, where parties voluntarily agree to resolve their dispute outside the court system.
   • The proceedings follow rules set by the parties or institutions (like the Indian Council of Arbitration) and are presided over by arbitrators chosen by the parties or appointed by a court if the parties cannot agree.
3. Binding Nature of Decisions:
   • The decision or award given by an Arbitration Tribunal is binding on both parties and can be enforced in a court of law.
   • However, in certain cases, parties can challenge the arbitral award in court on specific grounds (like bias or procedural irregularity).
4. Costs:
   • Arbitration can be expensive, as parties bear the costs of the arbitrators, venue, and other associated legal expenses. However, it is still often cheaper and faster than regular court litigation.
5. Private and Confidential:
   • Arbitration proceedings are private and confidential, making it attractive for parties who prefer to avoid public litigation.

Types of Cases Entertained by Arbitration Tribunals:

• Civil Cases Only: Disputes involving contracts, real estate, business, intellectual property rights, partnerships, and similar commercial matters.
• No Criminal Cases are entertained in arbitration, as criminal law is outside the scope of private dispute resolution.

Comparison Between Lok Adalats and Arbitration Tribunals

Conclusion:

• Lok Adalats are more inclusive, handling both civil and compoundable criminal cases with a focus on amicable settlements and free legal services, making them accessible to the public at large.
• Arbitration Tribunals, on the other hand, are restricted to civil disputes, especially commercial ones, and offer a formal, private, and more structured process, but are less accessible due to the costs involved.

Both serve important roles in reducing the burden on traditional courts but cater to different kinds of disputes and parties.