COURTS & PROCEDURE · DISPUTE RESOLUTION

Lok Adalat:settlement by consent, with the force of a decree

It is not a lesser court and it is not mediation. A Lok Adalat award is a civil court decree, it is final, and the court fee already paid comes back to you.

Written by Vakeels.AI Editorial
Legally reviewed by Adv. Shiva Kamireddy
Last reviewed 12 October 2026
14 min read
SHORT ANSWER

A Lok Adalat is a forum that settles disputes by agreement between the parties. It is constituted under the Legal Services Authorities Act, 1987. Its award has the status of a decree of a civil court, it is final and binding, no appeal lies against it, and the court fee already paid in the case is refunded.

LOK ADALAT AT A GLANCE
Constituted underLegal Services Authorities Act, 1987
Basis of decisionSettlement by consent of both parties (a Permanent Lok Adalat can also decide on merits)
Status of the awardDeemed to be a decree of a civil court
AppealNone lies. The award is final and binding
Court feeFee already paid in the suit is refunded
Cost of the proceedingFree. No fee to have a matter placed before it
What it can take upPending cases, and disputes not yet filed in any court
What it cannot take upNon-compoundable criminal offences
If no settlementA pending case returns to its court and continues from where it stood; for a dispute not yet filed, the parties are free to go to court
National Lok AdalatHeld across the country on scheduled dates through the year

What a Lok Adalat is

The literal sense is “people's court”, and the description is apt in one respect and misleading in another. It is approachable, informal in procedure and free. But it does not try cases and it does not deliver verdicts. It records settlements.

The forum is constituted under the Legal Services Authorities Act, 1987, and organised by the legal services authorities at national, state and district level, and by taluk legal services committees. A bench typically comprises a serving or retired judicial officer sitting with a social worker and a member of the legal profession.

The decisive feature is consent. A Lok Adalat cannot impose an outcome on unwilling parties. It can persuade, it can suggest terms, it can point out what litigation will cost in time and money. But if one side does not agree, the matter simply returns to the court it came from.

Why the finality matters

Because the award is deemed a decree of a civil court and no appeal lies against it, a dispute that settles there is genuinely over. A contested suit of the same kind may run through trial, first appeal and second appeal. That difference — years against a single sitting — is the forum's real argument.

What it can and cannot settle

SCOPE
Routinely taken upCannot be taken up
Motor accident compensation claimsOffences that are not compoundable under law. Where an offence cannot lawfully be settled between the parties, a Lok Adalat has no jurisdiction to record a settlement of it, however willing both sides may be.
Cheque dishonour cases
Bank and financial recovery matters
Matrimonial and family disputes, other than divorce itself
Labour and service disputes
Electricity, water and other utility bills
Land acquisition compensation, partition, and civil suits generally

Within that scope it takes both pending cases, referred by the court where they are filed, and pre-litigation disputes that have not been filed anywhere, placed before it on an application by a party.

National, Permanent and ordinary Lok Adalats

“Lok Adalat” covers three arrangements that work differently, and the differences matter when you are deciding where to take a dispute.

THE THREE KINDS
 Ordinary Lok AdalatNational Lok AdalatPermanent Lok Adalat
When it sitsAs organised by the legal services authority, at intervalsOn scheduled dates through the year, across the country simultaneouslyContinuously, as a standing body
What it takesPending and pre-litigation matters generallyThe same, but in very large volume on a single dayDisputes relating to public utility services
If parties do not agreeThe matter returns to courtThe matter returns to courtIt may decide the dispute on merits
AwardDecree of a civil court, no appealDecree of a civil court, no appealFinal and binding, deemed a civil court decree; open only to a writ challenge

The Permanent Lok Adalat is the real outlier

It deals with disputes about public utility services — transport, postal and telegraph, telephone, electricity, water supply, sanitation, hospital services and insurance, plus services the Centre or a State has notified, such as education, housing and real estate, and banking. It takes a dispute only before it has been filed in any court, up to a value of ₹1 crore. Its distinguishing feature is that where conciliation fails, it does not simply send the parties away: it may decide the dispute on merits, provided the dispute does not relate to a non-compoundable offence and falls within its pecuniary jurisdiction. That makes it closer to an adjudicating forum than the other two.

National Lok Adalat is where volume happens

These are held on scheduled dates several times a year, with benches sitting simultaneously from the Supreme Court down to taluk level. Courts actively refer matters in the weeks before, which is why a case that has been dormant for months suddenly appears on a settlement list. If you are waiting for a date, checking the National Lok Adalat calendar is often the quickest route to one.

Traffic challans and Lok Adalat

A very large share of Lok Adalat activity in the big cities is traffic challans, and most people's first encounter with the forum comes through a pending challan notice rather than a civil dispute.

The pattern is consistent across states. Traffic police issue notices for pending challans, listing them for a particular Lok Adalat date at a named venue. The vehicle owner attends, the matter is taken up, and the challan is disposed of — sometimes with a reduction in the fine, though that is not guaranteed. Only compoundable offences can be settled this way; drunk driving and accident cases, for example, are generally excluded.

What to do when you receive a challan Lok Adalat notice

  1. Check the notice carefully It will state the date, the venue, the court or bench, and the challan numbers listed. Several challans against the same vehicle are usually listed together.
  2. Verify the challans independently Check the pending challans against your vehicle on the state traffic police portal or the national e-challan system, so you know what is genuinely outstanding before you attend.
  3. Carry the documents The notice, your driving licence, the vehicle registration certificate, insurance, and identification.
  4. Attend, or send an authorised person Attendance is what allows the matter to be taken up and closed. A challan that is not settled remains pending and can be listed again, or proceed in the ordinary course.
  5. Keep the receipt and the order Once settled and paid, retain the proof. Pending challans surface later at the time of transfer, renewal or a fitness check.
Is attending compulsory?

A Lok Adalat cannot compel a settlement, and nobody can be forced to agree to terms. But where a matter has been listed and notice served, attending is strongly advisable — it is the cheapest and fastest opportunity to close it, and non-attendance sends the matter back to the ordinary court process.

Can a Lok Adalat award be challenged?

The short answer, and the one that makes the forum work, is that no appeal lies. The award is deemed to be a decree of a civil court and is final and binding on all the parties. There is no first appeal, no second appeal, and no revision.

There is one narrow route recognised by the courts, and it is important to understand what it is and what it is not. Because the award's entire legal foundation is the consent of the parties, a challenge is possible where that consent did not in fact exist — for example, where it was obtained by fraud or misrepresentation, where a party never agreed at all, or where the award records terms the parties did not settle on. That challenge is brought by writ petition before the High Court, not by appeal.

What this means before you sign

Changing your mind afterwards is not a ground. Discovering later that the figure was low is not a ground. Realising that the settlement did not cover a related claim is not a ground. The moment to get the terms right is before the award is recorded — which is the single strongest argument for having an advocate read them first, even though representation is not required.

Checking the status of a Lok Adalat matter

Where a pending court case was referred, the case continues to be tracked by its CNR number, and the disposal will show on the eCourts record once entered. For traffic challan matters, the state traffic police or e-challan portal will reflect the challan as settled. For a pre-litigation matter, the legal services authority that organised the sitting holds the record.

Where the idea came from, and why it is called a people's court

The first Lok Adalat in the modern form was held in Gujarat in 1982, as an experiment in resolving disputes by conciliation outside the regular court process. It worked well enough, and spread quickly enough, that Parliament gave it statutory backing in the Legal Services Authorities Act, 1987 (in force from 1995), which also created the legal services authorities that organise these sittings today.

The name translates as “people's court”, and the description holds in three specific senses.

  • Access. There is no fee to have a matter placed before it, and the court fee already paid in a pending case is refunded on settlement. Cost is removed as a barrier entirely.
  • Procedure. It is not bound by the strict rules of the Code of Civil Procedure or the law of evidence (now the Bharatiya Sakshya Adhiniyam, 2023) in the way a regular court is. There is no formal pleading, no examination-in-chief, no cross-examination.
  • Participation. The outcome is the parties' own. The bench persuades and suggests; it does not impose. A settlement exists only because both sides made it.

The constitutional backing for all of this is Article 39A, which directs the State to secure that the operation of the legal system promotes justice on a basis of equal opportunity, and to provide free legal aid so that opportunities for securing justice are not denied by reason of economic or other disability. The legal services authorities and the Lok Adalat system are the statutory machinery built to give that direction effect.

How to get a matter listed

  1. If the case is already in court Make an application to the court hearing it, or indicate to the court that both sides are willing to attempt settlement. The court refers the matter. Courts also refer matters on their own where settlement appears possible, particularly ahead of a National Lok Adalat date.
  2. If nothing has been filed Apply to the District Legal Services Authority, or the Taluk Legal Services Committee, for the area, setting out the dispute and the parties. There is no fee.
  3. Watch the National Lok Adalat calendar These are held on scheduled dates through the year across the country, and large numbers of matters are listed on each. Courts actively refer cases ahead of them, so this is often the quickest route to a hearing date.
  4. Prepare the settlement, not the argument The proceeding is not a trial. What is useful is a clear figure, a clear timeline for payment or performance, and documents that support both. What is not useful is a case prepared for cross-examination.
  5. Read the terms before consenting Once recorded, the award is a decree and cannot be appealed. Make sure the terms cover the full obligation — the amount, the dates, what happens on default, and that the settlement disposes of all claims between the parties arising from that dispute.
WORKED EXAMPLE

A cheque dishonour case between two traders in Surat has been pending for two and a half years, with the next date four months away. Ahead of a National Lok Adalat the court refers it. The parties agree on payment of the principal in three instalments. The bench records the award and the case stands disposed of; if an instalment is missed, the award is enforceable like a decree. The court fee paid at filing is refunded. Had the case run its course, the same outcome might have arrived three years later, after several more dates.

The award, and what to do if it is not honoured

The award is drawn up in the terms agreed, signed by the parties and the bench members, and takes effect as a decree of a civil court. Where the matter was pending, the case stands disposed of. Where it was pre-litigation, the award stands on its own.

If the other side does not comply with the terms, you do not start fresh proceedings on the original dispute. The award is executed in the same way as any civil court decree, by filing execution proceedings before the appropriate court. Because the award is not appealable, the party in default has no route to reopen the merits — the only question in execution is compliance.

Draft the default clause

The most common weakness in a Lok Adalat settlement is terms that cover the amount but not what happens if an instalment is missed. Specify the consequence of default — acceleration of the balance, interest, or the revival of a specific right — while you are still at the stage where it can be negotiated.

Lok Adalat, mediation and arbitration

HOW THE THREE DIFFER
 Lok AdalatMediationArbitration
OutcomeAward by consentSettlement agreementAward decided by the arbitrator
Imposed on parties?NoNoYes
StatusDecree of a civil courtCourt-referred settlements are recorded by the court; the Mediation Act, 2023 provides for enforcement as a decreeEnforceable as a decree
AppealNoneChallenge only on narrow grounds such as fraudLimited challenge on specified grounds
CostFree, and court fee refundedUsually modestOften substantial

The practical reading: Lok Adalat is the cheapest and most final of the three, and it is available for the widest range of everyday disputes. Its limitation is that it only works where both sides are genuinely prepared to settle. Where one side is not, nothing is lost by trying — the case simply resumes.

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Frequently asked questions

Can I appeal a Lok Adalat award?

No. The award is final and binding on all parties, and no appeal lies against it to any court. That finality is the central feature of the forum. The narrow exception recognised by courts is a challenge by writ petition where the award was not in fact based on consent — for example where a party's consent was obtained by fraud or where there was no settlement at all.

Do I get my court fee back?

Yes. Where a case pending before a court is settled in Lok Adalat, the court fee paid in that case is refunded in the manner provided under the Court Fees Act. This is one of the main practical reasons parties agree to take a matter there.

What happens if we do not settle?

The case goes back to the court that referred it, and proceeds from the stage at which it stood. Nothing is lost by attempting settlement, and settlement discussions are generally not used against a party. For a dispute that was never filed, the parties remain free to go to court.

Which cases cannot go to Lok Adalat?

The Act bars offences that are not compoundable. By practice, a divorce itself is also not granted there. Most other matters — civil disputes, other matrimonial and family matters, motor accident claims, cheque dishonour cases, bank recovery, utility bills, labour disputes and land acquisition compensation — can be referred.

Do I need a lawyer?

You are not required to have one, and the proceeding is designed to be approachable without representation. In practice, where the dispute involves a significant sum or a continuing obligation, having an advocate advise you on the settlement terms before you consent is sensible — because once recorded, the award cannot be appealed.

Can a dispute that has not been filed in court be taken there?

Yes. A pre-litigation dispute can be placed before a Lok Adalat on an application by any party. This is a useful route where both sides want a binding record of a settlement without first filing a suit.

What is a National Lok Adalat?

It is a Lok Adalat held on scheduled dates several times a year, with benches sitting simultaneously across the country from the Supreme Court down to taluk level. Very large numbers of matters are disposed of on a single day, and courts actively refer cases in the weeks beforehand — which is why checking the calendar is often the fastest route to a settlement date.

What is a Permanent Lok Adalat, and how is it different?

It is a standing body that deals with disputes relating to public utility services such as transport, postal, telephone, electricity, water, sanitation, hospital services and insurance, and other notified services such as education, housing and banking. It takes disputes before they are filed in any court, up to ₹1 crore. Its key difference is that where the parties fail to agree, it may decide the dispute on merits, provided the dispute does not relate to a non-compoundable offence.

Is it compulsory to attend a Lok Adalat?

Nobody can be forced to settle, and a Lok Adalat cannot impose an outcome. But where a matter has been listed and notice served, attending is strongly advisable — it is the cheapest and fastest chance to close it, and non-attendance sends the matter back to the ordinary court process.

Can Lok Adalat handle criminal cases?

Only compoundable offences, which the law permits the parties to settle. Offences that are not compoundable cannot be settled there however willing both sides may be.

How do I check the status of a matter settled in Lok Adalat?

Where a pending court case was referred, track it by its CNR number on the eCourts record, which will show the disposal once entered. For traffic challans, check the state traffic police or e-challan portal. For a pre-litigation matter, the legal services authority that organised the sitting holds the record.

When was the first Lok Adalat held?

The first Lok Adalat in its modern form was held in Gujarat in 1982. The system was given statutory backing by the Legal Services Authorities Act, 1987, which also created the legal services authorities that organise sittings today.

How this page is maintained. Written by the Vakeels.AI editorial team and checked against the current statute by Adv. Shiva Kamireddy, Advocate. Last reviewed on 12 October 2026. Where a provision has moved from the older code to the new one, both references are given so older judgments and newer filings can be followed.
This page is legal information, not legal advice. It does not create an advocate–client relationship and it cannot account for the facts of your matter. Procedure, fees and timelines vary by state, court and bench, and the law changes. Confirm the position with a practising advocate before you act on anything here.