Lok Adalat Award Not Valid Without Signatures Of Parties; Advocate's Signature Alone Not Binding: Karnataka High Court

Quashing a Lok Adalat award payable to the family of the deceased in a motor accident claims appeal, Karnataka High Court has clarified that the claimant not signing the joint memo of the award would render the award non-binding upon him, even claimant's' lawyer signs the memo. The single judge bench of Justice M Nagaprasanna, relying on various precedents, noted that the National Legal Services Authority (Lok Adalats) Regulations offer surety about the validity of an award arising from a settlement. The court noted that Regulation 17 explicitly talks about ensuring that the parties affix their signatures after fully understanding the terms of the settlement, for such an award to be valid.“…It is clear from the joint memo that the claimants have not affixed their signatures….It is only the Advocates of both sides and the representative of the Insurance Company who have affixed their signatures…since the claimants have not signed the joint memo, I deem it appropriate to set aside the award of the Lok Adalat and restore the appeal to its file to be heard on its merits”, the bench sitting at Dharwad held.It thus allowed the writ petition filed by the victim's family for quashing the Lok Adalat award.In 2012, while going to the hospital, three members of a family got into an accident in which the father succumbed to death, leaving behind the mother and their son. The survivors of the accident secured a compensation of Rs 9,18,600/- from the motor accident claims tribunal. The insurance company approached the High Court in appeal. During its pendency, the matter was referred to Lok Adalat and a final settlement to the tune of Rs 7,82,000/- had been reached as per the insurance company. The claimants for the deceased person approached the high court contending that they haven't signed the joint memo at Lok Adalat that reduced the earlier compensation.The court observed that the insurance company representatives, its advocate and the petitioners' advocate alone have affixed their signatures in the joint memo and the portion where the petitioners are required to sign has been left blank. The court added that the Kerala High Court In Sunanda v. Sundaran(2020) and K.R.Jayaprakash v. State Of Kerala (2023) has held that lawyers affixing their signatures on behalf of their clients alone would not make the award binding upon the respective clients.“…The Apex Court holds that an award would become executable if it is passed on a joint memo, only when the parties have signed the joint memo. The award would be the award passed by the Lok Adalat…”, the court further stated.The court, thus, emphasised that the award of the Lok Adalat should be set aside on the sole score that the petitioners have not put their signatures on the joint memo which culminated in the award. The MFA was hence restored to the original file before the High Court fir disposal in accordance with law. “…the Apex Court in Kirti v. Oriental Insurance Company Limited – (2021) 2 SCC 166 holds that a concession made by a counsel would not bind the parties, as the Advocate cannot throw away legal rights of the clients or enter into arrangements contrary to the interest of the clients..”, the court observed in its order.Adv. Shiriya S. Katagimath appeared for the petitioners. Adv. S.K. Kayakamath represented the Respondent No. 1 and Adv. Mahesh Wodeyar appeared for Respondent No. 2.Case Title: Smt. Shaila & Anr. v. The Managing Director, ICICI Lombard GIC Ltd. & Anr. Case No: Writ Petition No. 102733/2021Click Here To Read/ Download Order

Lok Adalat Award Not Valid Without Signatures Of Parties; Advocate's Signature Alone Not Binding: Karnataka High Court

Sebin James

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