An Award passed under Section 19 of the 1987 Act is a product of compromise. Sans compromise, the Lok Adalat loses jurisdiction. The matter goes back to the Court for adjudication. Pursuant to the compromise and the terms being reduced to writing with the approval of the parties it assumes the garb of an Award which in turn is again deemed to be a decree without anything more. We would think that it may not be legislative intention to treat such an award passed under Section 19 of the 1987 Act to be equivalent to an award of the Court which is defined in the Act as already noted by us and made under Part III of the Act. An award of the Court in Section 28A is also treated as a decree. Such an Award becomes executable. It is also appealable. Part III of the Act contains a definite scheme which necessarily involves adjudication by the Court and arriving at the compensation. It is this which can form the basis for any others pressing claim under the same notification by invoking Section 28A. We cannot be entirely oblivious to the prospect of an ‘unholy’ compromise in a matter of this nature forming the basis for redetermination as a matter of right given under Section 28A. {Para 48}
49. We would, therefore, approve the view taken by the Bombay High Court in Umadevi Rajkumar Jeure (supra) and the learned single Judge of the Karnataka High Court in Vasudave (supra) and hold that an Award passed under Section (20) of the 1987 Act by the Lok Adalat cannot be the basis for invoking Section 28A.
50. As far as the argument of the respondents that the award dated 12.3.2016 can be treated as the order of the Court within the meaning of Section 18 of the Act read with Section 28A of the Act, we are of the view such an argument cannot be accepted.
Supreme Court
CIVIL APPEAL NO.901 OF 2022
3rd February 2022
Author: K. M. JOSEPH, J.
Citation: 2022 ALL SCR (ONLINE) 121
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