Lok Adalats and Arbitration Tribunals are Statutory instruments for alternative dispute resolution that aim to provide speedy and cost-effective resolution of disputes outside of the traditional court system.
Difference Between Lok Adalat And Arbitration Tribunals
| Aspect | Lokadalat | Arbitration Tribunal |
| Definition | A forum for resolving disputes through conciliation under the Legal Services Authorities Act, 1987. | A quasi-judicial body established to resolve disputes outside the court system based on an arbitration agreement. |
| Nature | Conciliatory and informal. | Adversarial and formal, similar to court proceedings. |
| Authority | Non-judicial, presided over by a judge or a legal expert. | Judicial authority to make binding decisions. |
| Legal Framework | Governed by the Legal Services Authorities Act, 1987. | Governed by the Arbitration and Conciliation Act, 1996. |
| Process | Dispute resolution through negotiation, conciliation, and compromise. | Resolution based on the arbitration agreement and arbitral award, with arbitrator(s) acting as a judge. |
| Types of Cases | Primarily civil cases, including family disputes, land disputes, and some minor criminal cases (compoundable offenses). | Primarily civil matters, especially commercial disputes; no jurisdiction over criminal cases. |
| Binding Nature | The decisions (settlements) reached are binding and final if both parties agree. | The arbitral award is binding on the parties and enforceable like a court decree. |
| Cost of Proceedings | No court fee | Parties bear the cost, which can be high due to arbitration fees. |
| Powers and nature of cases and settlement | They can settle disputes based on compromise, and their decisions are considered as decrees of civil courts. | Commercial disputes, business contracts, and international disputes.Not applicable for criminal or matrimonial disputes. |
| Appeal Mechanism | Generally, no appeal is allowed if the award is mutually agreed. | Appeals can be filed in courts against arbitral awards under certain circumstances. |
Powers In Civil And Criminal Cases
- Lok Adalats:
- Can entertain civil cases like property disputes, family disputes, land disputes.
- Can also take up criminal cases but only compoundable offenses (minor offenses where parties can settle).
- Arbitration Tribunals:
- Only civil cases, typically commercial disputes, can be addressed.
- No jurisdiction over criminal matters.
| Issue | Way Forward |
| Lack of Awareness | Sri Krishna Committee suggests including ADR in legal literacy programs. |
| Judicial Intervention | UNCITRAL Model Law limits judicial interference.Law Commission (246th Report) calls for amending the Arbitration Act to reduce court involvement. |
| High Costs of Arbitration | NITI Aayog advises promoting institutional arbitration with cost caps. |
As ‘Justice delayed is justice denied’. Both Lok Adalats and Arbitration Tribunals need to be strengthened to increase accessibility, affordability and quality of Justice in the spirit of Article 39.
