Lok Adalats and Arbitration Tribunals are both alternative dispute resolution mechanisms, but they serve distinct purposes. Lok Adalats are judicial bodies set up to facilitate amicable settlement of disputes, often for minor civil or criminal cases. Arbitration Tribunals, on the other hand, primarily deal with civil disputes through a private arbitration process agreed upon by the parties.
Q2. Explain and distinguish between Lok Adalats and Arbitration Tribunals. Whether they entertain civil as well as criminal cases?
Model Answer:
Introduction
Lok Adalats and Arbitration Tribunals are two forms of alternative dispute resolution (ADR) mechanisms in India, designed to settle disputes outside of traditional courts. While both aim to reduce litigation burden and offer quicker resolutions, they differ in their structure, jurisdiction, and processes.
Body
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Criteria
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Lok Adalat
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Arbitrational Tribunals
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Nature
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Established under the Legal Services Authorities Act, 1987, Lok Adalats focus on settlement through conciliation and compromise
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Governed by the Arbitration and Conciliation Act, 1996, these tribunals resolve disputes based on prior arbitration agreements between parties.
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Jurisdiction
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They entertain civil cases (family disputes, motor accident claims, property matters) and compoundable criminal cases (minor offenses that can be legally compromised). They do not handle serious criminal cases.
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They handle civil and commercial disputes (contractual issues, trade matters) but do not entertain criminal cases.
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Binding Nature
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The decisions are binding, with no appeal allowed. If no compromise is reached, the case may go back to court.
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Arbitration awards are binding, but they can be challenged in court on limited grounds, such as procedural errors or bias.
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Cost
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No court fees are charged, making it highly cost-effective for the parties involved.
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They can be expensive, as the parties must pay fees for the arbitrators, legal representation, and administrative costs.
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Example
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In 2023, a National Lok Adalat settled over 25 lakh cases across India in one day, offering speedy relief to litigants.
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A major arbitration case in 2022 involved Vodafone and the Indian government, concerning a tax dispute settled under an international arbitration tribunal.
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Conclusion
Both Lok Adalats and Arbitration Tribunals serve as efficient alternatives to traditional courts, but they cater to different types of disputes. Lok Adalats emphasize compromise in both civil and minor criminal cases, while Arbitration Tribunals focus solely on civil and commercial matters based on contractual agreements.
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