Lok Adalats are not courts, their settlement decrees not valid: Supreme Court | India News – Times of India

NEW DELHI: In an important judgment, the Supreme Court has ruled that Lok Adalats are not courts as they do not resort to judicial adjudication in resolving disputes and said that their settlement decrees cannot be cited as a precedent before a court of law to claim similar relief by others who were not party to the compromise before the Lok Adalat.
Noida authority had issued a notification in March 1983 for acquisition of land in villages situated in Tehsil Dadri for planned industrial development. Land owners were given compensation at the rate of Rs 20 per square yard in November 1984. None of the land owners questioned the rate of compensation and all accepted the amount due to them.
One Fateh Mohammed filed an application seeking reference against the Award of November 28, 1984 and it was made over to a Lok Ada-lat, where the Noida authority settled with him in 2016 and agreed to pay Rs 297 per square yard, almost 15 times more than the original compensation more than 30 years later.
The other landowners saw the opportunity and successfully pleaded before the Allahabad HC for grant of compensation at the rate of Rs 297 per square yard on the ground that Lok Adalat awarded decrees had precedential value. NOIDA challenged the HC order in SC.

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