On October 16, 2023, the High Court of Jammu & Kashmir and Ladakh upheld a Lok Adalat's decision related to a payment dispute arising from a construction project. The judgment, which was initially reserved on October 9, 2023, and subsequently announced on October 16, 2023, sets an important legal precedent by underscoring the conclusive and binding nature of Lok Adalat's determinations.

In this case, the petitioners contested an order issued by the Lok Adalat on May 9, 2015. This Lok Adalat's order was regarded as a compromise decree, originating from a pre-litigation application submitted by Mohammad Naseem Khan, who was a contractor. Khan had sought the recovery of Rs. 3 lakhs in unpaid payments for a road construction project dating back to 2008. Notably, Khan explicitly stated that he would not impose any interest on the outstanding amount.

Justice Wasim Sadiq Nargal, in the High Court's ruling, reaffirmed the core principles guiding Lok Adalat's determinations. The judge emphasized that "Each Lok Adalat award is treated as a civil court decree, and when a compromise or settlement is reached, it is considered conclusive and obligatory for all parties involved. There is no avenue for appealing the award in any other court."

The judgment underscored the principle that consent decrees, which result from agreements, can only be annulled on grounds that would render the agreement itself void. The judge's ruling made it clear that "As there is no avenue for appeal against a compromise decree, the sole recourse for a party wishing to avoid such a decree would be to challenge the consent decree in the same court that issued it and demonstrate that the agreement on which the decree is based was invalid."

This case serves as a reminder of the significance of acknowledging the conclusiveness and binding character of Lok Adalat awards. When a compromise decree is issued as a result of an agreement, it carries the weight of a legally binding decision that cannot be easily contested. The High Court's ruling, in support of the Lok Adalat's compromise decree, underscores the idea that such determinations should be subject to thorough scrutiny before they are overturned.

Case: Chief Engineer PWD Kashmir Vs Fahmeeda Begum, OWP 384/2018.