Explain and distinguish between Lok Adalats and Arbitration Tribunals. Whether they entertain civil as well as criminal cases ?
Introduction
The Lok Adalat and Arbitration Tribunal are two alternative dispute resolution (ADR) mechanisms in India aimed at reducing the burden on formal courts. While Lok Adalats are rooted in the principles of social justice and equity, Arbitration Tribunals are contractual and governed by the Arbitration and Conciliation Act, 1996. Both mechanisms have distinct features, jurisdictions, and applicability.
Key Differences Between Lok Adalats and Arbitration Tribunals
| Aspect | Lok Adalats | Arbitration Tribunals |
|---|---|---|
| Legal Framework | Governed by the Legal Services Authorities Act, 1987. | Governed by the Arbitration and Conciliation Act, 1996. |
| Nature of Disputes | Deals with pre-litigation and pending cases in courts. | Resolves disputes arising from contractual agreements. |
| Jurisdiction | Can entertain civil cases and certain compoundable criminal cases. | Limited to civil disputes; does not handle criminal cases. |
| Voluntary Nature | Participation is voluntary for both parties. | Arbitration is contractual and based on a prior agreement (arbitration clause). |
| Decision | Decisions are called awards and are binding on parties. | Decisions are called arbitral awards and are binding. |
| Cost | Generally free of cost or nominal fees. | Involves high costs due to arbitrator fees and legal expenses. |
| Presiding Authority | Presided over by a judicial officer and other members. | Presided over by arbitrators chosen by the parties. |
| Appeal | Awards are final and cannot be appealed. | Awards can be challenged under Section 34 of the Arbitration Act. |
Jurisdiction Over Civil and Criminal Cases
Lok Adalats
- Civil Cases: Lok Adalats can handle disputes related to property, matrimonial issues, motor accident claims, and financial matters.
- Criminal Cases: They can only entertain compoundable criminal cases (e.g., cheque bounce under Section 138 of the Negotiable Instruments Act, matrimonial disputes, etc.).
- Key Feature: The focus is on conciliation and compromise between parties.
Arbitration Tribunals
- Civil Cases: Arbitration Tribunals are limited to civil disputes arising from contractual obligations, such as commercial contracts, construction disputes, and partnership agreements.
- Criminal Cases: Arbitration Tribunals do not have jurisdiction over criminal matters, as criminal law is a matter of public policy and cannot be arbitrated.
Value Addition Block: Key Features at a Glance
Conclusion
While both Lok Adalats and Arbitration Tribunals aim to provide speedy and cost-effective justice, their scope and jurisdiction differ significantly. Lok Adalats cater to both civil and compoundable criminal cases, emphasizing social justice, while Arbitration Tribunals are confined to civil disputes arising from contractual agreements. Together, they complement the formal judicial system in reducing pendency and ensuring access to justice.