Lok Adalat settlement process in India

The Indian judiciary is overburdened with millions of pending cases, which often take years to reach a conclusion. To provide speedy and affordable justice, the Legal Services Authorities Act, 1987 introduced the concept of Lok Adalat (People’s Court). Lok Adalats offer an alternative dispute resolution (ADR) mechanism where disputes are settled amicably through negotiation, compromise, and mutual agreement, instead of lengthy litigation. In this blog, we will explain the step-by-step settlement process in Lok Adalat. 1. Identification of Dispute Lok Adalats deal with: Civil disputes (property, matrimonial, family, bank recovery cases) Motor accident claims Labour and employment disputes Cheque bounce cases under Section 138 of the NI Act Compoundable criminal cases (like minor assault, defamation, etc.) Non-compoundable criminal cases (such as murder, rape, terrorism) are not taken up by Lok Adalats. 2. Filing or Referral of Case Cases reach Lok Adalat in two ways: Direct Approach – A party can directly file an application before the District Legal Services Authority (DLSA), State Legal Services Authority (SLSA), or National Legal Services Authority (NALSA). Court Referral – If a case is already pending in a regular court, the judge may refer it to Lok Adalat with the consent of both parties. 3. Notice to Opposite Party Once the application is accepted, a notice is issued to the opposite party to appear before the Lok Adalat on a scheduled date. 4. Lok Adalat Hearing The case is taken up before a panel of conciliators, usually consisting of: A sitting or retired judicial officer A lawyer A social worker The panel facilitates conciliation and compromise by guiding both parties to reach a fair settlement. 5. Negotiation and Settlement Both parties present their side, and the conciliators help them explore settlement options. Settlements may involve full or partial payments, installments, or any other mutually acceptable terms. The goal is mutual agreement, not imposing a judgment. 6. Award of Lok Adalat If both parties agree, the Lok Adalat passes an award (settlement order). The award has the status of a civil court decree. It is binding on both parties. No appeal can be filed against the award. 7. Execution of Award The award of Lok Adalat is legally enforceable. If one party fails to comply, the other party can approach the regular court for execution of the decree. Benefits of Lok Adalat Settlement Free of cost – No court fee required (refund if already paid in pending cases). Quick disposal – Settlements happen in a single sitting. Binding decision – Final and enforceable like a civil court order. Amicable resolution – Preserves business, family, or personal relationships. The Lok Adalat settlement process is one of the most efficient ways to resolve disputes in India. It reduces case backlog in courts and provides people with a faster, cheaper, and friendlier mechanism of justice. If your dispute is civil in nature or involves a compoundable criminal offence, approaching Lok Adalat can be a smart decision for quick and fair settlement. Disclaimer: This blog is for informational purposes only and should not be treated as legal advice. We are not doing any advertisement or solicitation work. For case-specific guidance, please consult a qualified lawyer or approach your nearest Legal Services Authority.