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Validity of terms of lok adalath award

(Querist) 04 February 2012 This query is : Resolved 
Respected experts,
In an award passed by lok adalath(DLSA)in a complaint filed u/s 138 of NI Act, the following terms were incorporated :-

(1)The Accused agreed to pay an amount of Rs.2,00,000/- to the complainant within 30 days from the date of award failing which the accused is entitled to recover the amount of cheque Rs.5,00,000/- as compensation u/s 357(3) Cr.p.c. and also should undergo three months imprisonment.
(2)In case of default by the accused, the complainant is entitled to recover the said compensation amount by way of filing Crl.m.p.

With the above terms the award was passed.

My question is:-
1. Whether the award passed with the above terms is valid? If so, up to what extent?
2. Whether the complainant is entitled to recover the cheque amount by filing Crl.m.p.? If so, under what provision?
3. Whether the accused should undergo imprisonment in default of payment agreed under the award within the time stipulated?
4.Is there any remedy for the accused to escape from imprisonment and payment of compensation?

Devajyoti Barman (Expert) 04 February 2012
The Lokadalat award is granted on consent only.
Once the parties agree on it nether of them could resile from it in future nor could raise any dispute over it.

So the party under binding duty of the award is to comply it in default of which he can not escape the liabilities as stated therein.
Devajyoti Barman (Expert) 04 February 2012
The Lokadalat award is granted on consent only.
Once the parties agree on it nether of them could resile from it in future nor could raise any dispute over it.

So the party under binding duty of the award is to comply it in default of which he can not escape the liabilities as stated therein.
Devajyoti Barman (Expert) 04 February 2012
Sorry, it seems to be a technical glitch as a result of which my reply is posted twice.
Do consider only one reply.
Raj Kumar Makkad (Expert) 04 February 2012
1. It is purely valid as per provisions of Lok Adalat Act.

2. As already provided in the award, he need not mention any provision but has to mention only the award is to be executed.

3. We are not with wrong doer.

4. You can suggest wrong doer but we shall guide him only to fulfil his own words upon which award had been filed.
sridhar pasumarthy (Querist) 04 February 2012
@Makkad sir,
According to recent judgment of our Apex court, an award passed by lok adalath should be deemed as a decree of civil court and it is executable as such decree.

Where, as per the terms mentioned above, when the complaint u/s 138 of NI Act is disposed of by the award of lok adalath, where is the question of filing Crl.m.p. for execution of sentence against the accused.
Can it be said as execution of a civil decree?

Pls clarify


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