Mediation, conciliation and Lok Adalats

The essentials

Mediation and conciliation are voluntary, non-binding processes in which a neutral third person helps parties settle. A mediator mainly facilitates communication; a conciliator can also propose terms of settlement. A signed settlement agreement reached through conciliation or mediation is binding on the parties and enforceable under the law. Lok Adalats ("people's courts") are organised under the Legal Services Authorities Act, 1987 to settle pending or pre-litigation cases through compromise.

Key points

• Mediation Act, 2023: promotes mediation, including pre-litigation mediation, and gives settlement agreements enforceability.
• Lok Adalat bench: usually a serving or retired judicial officer with other members such as a lawyer or social worker.
• Cases: civil disputes, motor accident claims, matrimonial and family disputes, bank recovery, and compoundable offences. Non-compoundable offences cannot be settled there.
• Award: deemed to be a decree of a civil court; it is final and binding, with no appeal.
• Cost: no court fee is payable; if a pending case is settled, the court fee already paid is refunded.
• If no settlement: the case goes back to the regular court, and parties may pursue normal remedies.
• Permanent Lok Adalats: set up for disputes relating to public utility services such as transport, post, telecom, electricity and water; they can decide a dispute on merits if conciliation fails.
• National Lok Adalats are held across the country on the same day to dispose of large numbers of cases.

Exam tips

• "No appeal against a Lok Adalat award" is a frequently tested fact.
• Distinguish ordinary Lok Adalats (compromise only) from Permanent Lok Adalats (may decide on merits).

Common mistakes

• Thinking a Lok Adalat can decide a murder case by compromise.
• Believing mediation outcomes are imposed by the mediator.