Q. Explain and distinguish between Lok Adalats and Arbitration Tribunals. Whether they entertain civil as well as criminal cases?

Model Answer:

Lok Adalats and Arbitration Tribunals are Alternate Dispute Resolution (ADR) mechanisms ensuring speedy, cost-effective justice, albeit differing fundamentally in process and jurisdiction.

1. Key Differences

• Statutory Basis: Lok Adalats operate under Legal Services Authorities Act, 1987; Arbitration under Arbitration & Conciliation Act, 1996.
• Nature: Lok Adalats rely on conciliation and mutual compromise; Arbitration is quasi-judicial and adjudicatory.
• Cost: Lok Adalats are completely free (court fee refunded); Arbitration involves private, often expensive arbitrator fees.
• Appeal: Lok Adalat awards are final (no appeal); Arbitral awards face limited challenge (Sec 34 A&C Act).

2. Civil and Criminal Jurisdiction

• Civil Cases: Both mechanisms widely entertain civil, commercial, and financial disputes (Afcons Infrastructure vs Cherian Varkey).
• Criminal Cases (Lok Adalat): Entertains strictly compoundable criminal offences where mutual compromise is legally permissible (Sec 320 CrPC).
• Criminal Cases (Arbitration): Strictly barred from entertaining any criminal matters, as crimes are non-arbitrable public wrongs against the State.

While Arbitration promotes commercial efficiency and ease of doing business, Lok Adalats fulfill the constitutional mandate of free, accessible legal aid (Article 39A).