S.M. ANJINEYULU Vs. K. SATYA PRAKASH

JUDGEMENT

(1.) Till the year 1980, the adjudicatory process in India has been purely conventional. The only alternative to adjudication through Courts was arbitration. In the year 1980, a Committee for Implementing Legal Aid Schemes was appointed and through the auspices of the same, an informal adjudication, by conducting what are known as Lok Adalats, was evolved. The Parliament enacted the Legal Services Authorities Act, 1987 (for short 'the Act') with a view to provide statutory backing to the administration of justice through Lok Adalats.

(2.) Further improvements thereto were made through Act 37/2002. One of the salient features was the addition of Chapter-VI-A, which provided for the mechanism of Pre-Litigation Conciliation and Settlement. Section 22-C of the Act confers right upon any party to a dispute, to make an application to the Permanent Lok Adalat for settlement, before the dispute is brought to any Court of law.

(3.) The petitioner herein filed Pre-Litigation Case No.40 of 2008 before the Lok Adalat Bench, City Civil Court Legal Services Authority, Hyderabad (for short 'the Lok Adalat'), against respondents 1 and 2. It was pleaded that the respondents borrowed a sum of Rs.16,90,000/- from him, by executing six promissory notes, with a promise to repay the same. It is stated that the respondents also executed a deed of mortgage, offering a residential house bearing No.8-241-A, of Ramachary Veedhi, Madanapally, as security for repayment, but they are still due a sum of Rs.12,90,000/-, and prayed for a decree, for a sum of Rs.21,68,800/-, inclusive of interest.