Kerala High Court: To Execute Award by Lok Adalat Signature of Lawyers & Both Parties to Settlement Are Compulsory

Kerala High Court: To Execute Award by Lok Adalat Signature of Lawyers & Both Parties to Settlement Are Compulsory

The Kerala High Court by its single Judge Justice Viju Abraham has ruled that an award passed by the Lok Adalat which does not contain the signatures of both parties to the settlement is not valid in the eyes of law and cannot be executed. The Court also held that the signature of the counsels for the parties would not be enough to give validity to the award.

The factual matrix of the case was that the petitioner’s land was acquired for construction of Changanacherry – Kottayam by-pass and an award was passed by the Land Acquisition Officer. This award was challenged before the Sub Court and an award was passed. In terms of the award a decree was passed and the petitioner filed an execution petition.

However, the counsel for the petitioner made an inadvertent mistake where the actual amount due to the petitioner was not claimed, only a lesser amount was claimed. While the execution petition was pending, the matter was referred to the Lok Adalat and an award was passed.

It was only when the Lok Adalat passed the award was the petitioner made aware of the error in calculation of the amount to be claimed.

The petitioner contended that since the award was not signed by the petitioner, it was not executable. The petitioner pleaded that an award drawn in accordance with a settlement, is not executable award unless signed by both parties. The award was calculated on a miscalculation and the respondents were trying to take advantage of their bona fide mistake of the petitioner.

On the other hand, the respondent argued that the award was arrived at on account of settlement between the parties. It was highlighted by the respondents that the counsel for the petitioner had affixed his signature in the award. The respondent referred to Regulation 39 of the Kerala State Legal Services Authority Regulation, 1998 which states that lawyers can appear on behalf of the parties at the Lok Adalat, hence the signature of the counsel would suffice to validate the award.

The Court deemed to refer the relevant provisions such as Section 22C (7) of the Legal Services Authorities Act,1987, Regulation 33 of the Kerala State Legal Services Authority Regulation, 1998 and Regulation 17 of the National Legal Services Authority (Lok Adalats) Regulations, 2009 to conclude that both the parties must affix their signatures to the award and when the parties are represented by counsels, they must also affix their signatures.

The Court remarked, “it is without any doubt that the impugned award which does not contain the signatures of the petitioners cannot be said to be valid in the eye of law.”

Yet another reason for the Court to take such a stand was the case of the petitioners that in the calculation of the amount in the execution petition there occurred some bona fide mistake whereby the amount claimed was substantially lower than what they are entitled for.

The said mistake had not come to the notice of the petitioners also for the reason that no calculation statement was submitted by the respondents.

The Court urged that the State should not take undue advantage of the bona fide error on part of the petitioner’s counsel.

The Court clarified that the Execution Court shall give due credit to the amount already paid to the petitioners as per the awards impugned, while re-considering the matter as directed.

Accordingly, the Court disposed the petitions.