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NRV   27 September 2021

Compromise decree vs lokadalat award

in a property dispute, the parties agreed settle the matter, for them which is better compromise decree or lok adalat award for seize future issuesff??

 4 Replies

minakshi bindhani   27 September 2021

As per your query concerned!

Sec 2(2). C.P.C. defines decree as the final culmination of the rights of the parties in a suit. Order 23, Rule 3 C.P.C. formulates the procedure of providing a legal seal to the adjustments arrived at by the parties by passing a decree in consonance with the terms of such adjustment and such decree is defined as compromise decree. The consensus of the agreement arrived at by the parties is given judicial recognition and ratification.

Rule 3B: No agreement or compromise in a representative suit can be entered into without the leave of the court. Before granting such leave, the court shall comply with a notice to the interested party.

But in the case of Lok Adalat, no compromise or settlement could be arrived at between the parties, the record of the case shall be returned by it to the court, by which the reference has been received for disposal by the law.

In my view, a compromise decree is considerably practised in a property dispute matter to avoid future litigation expenses.

Hope it clarifies the issues
Minakshi Bindhani
1 Like

Dr. J C Vashista (Advocate and Legal Consultant)     28 September 2021

Compromise decree may be preferred over judgment passed by Lok Adalat.
1 Like

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     28 September 2021

the award (decision) made by the Lok Adalats is deemed to be a decree of a civil court and is final and binding on all parties and no appeal against such an award lies before any court of law. ... There is no court fee payable when a matter is filed in a Lok Adalat.

G.L.N. Prasad (Retired employee.)     28 September 2021

It depends on facts of the case importance and urgency. The parties in a suit express such a desire and prays the court for referring the case to Lokadalat and the court refers the issue to Lokadalat, and the compromise agreement between the parties gets an award status, that can not be challenged by those parties that signed in the agreement. (But in certain cases, it was challenged in High Court when compromise was done with misrepresentation). The procedure is simple, binding only in between the signatories and takes less than a week when compared with a decree from the competent court.

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