Explain and distinguish between Lok Adalats And Arbitration Tribunals

Explain and distinguish between Lok Adalats And Arbitration Tribunals

Lok Adalats and Arbitration Tribunals are alternative dispute resolution (ADR) mechanisms designed to settle disputes outside of traditional courts. While both are aimed at providing speedy and cost-effective justice and resolving disputes outside conventional courts, they differ significantly in their structure, composition, types of cases handled and processes.

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Established under the Legal Services Authorities Act, 1987

Composed of a sitting or retired judicial officer and two other members (usually a lawyer and a social worker)

Handle both civil and criminal cases (compoundable offenses). But cannot adjudicate non-compoundable criminal cases (serious offenses).

Decisions are binding and cannot be appealed in a court of law.

Follow a conciliatory approach, focusing on compromise. Presiding officer encourages settlement through mutual agreement.

Governed by the Arbitration and Conciliation Act, 1996.

Consist of one or more arbitrators chosen by the parties.

Deal primarily with civil disputes, cannot handle criminal cases.

Awards can be challenged in court under specific circumstances.

Follow a more formal, court-like procedure.

Legal Framework: Lok Adalats are governed by the Legal Services Authorities Act, 1987. Whereas Arbitration Tribunals are governed by the Arbitration and Conciliation Act, 1996.

Composition: Lok Adalats have a fixed structure, while Arbitration Tribunals allow parties to choose arbitrators.

Procedure: Lok Adalats are informal and conciliatory whereas Arbitration Tribunals are more formal and follow adjudicative process.

Jurisdiction and nature of disputes handled: Lok Adalats handle both civil and criminal (compoundable) cases on the other hand Arbitration Tribunals are limited to civil disputes.

Nature of Decisions: Lok Adalat decisions are final and cannot be appealed whereas Arbitration Tribunal awards though binding but can be challenged under limited circumstances in higher courts.

Cost of Proceedings: Lok Adalats have no court fee. In Arbitration Tribunals parties bear the cost, which can be high due to arbitration fees.

Time: Lok Adalats are generally faster than Arbitration Tribunals.

Lok Adalats entertain both civil cases (e.g., divorce, maintenance, child custody, domestic violence, property division, motor accident claims, etc.) and compoundable criminal cases (e.g., minor criminal offenses). Arbitration Tribunals primarily entertain civil matters such as commercial disputes, contract disputes, and construction agreements. Arbitration Tribunals do not entertain criminal cases since criminal matters cannot be settled through arbitration.

Thus, both Lok Adalats and Arbitration Tribunals offer alternatives to traditional court proceedings, but they cater to different types of disputes. Each alternative has its strengths and limitations, depending on the nature of the dispute and the parties involved.

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