The Karnataka High Court has set aside a Lok Adalat award in a motor accident case. The court said that if the claimants do not sign the settlement, the award is not binding on them, even if their lawyer has signed it.
Justice M Nagaprasanna gave this decision. He referred to rules under the National Legal Services Authority. These rules clearly say that both parties must sign the settlement after understanding its terms. Only then is the Lok Adalat award valid.
The court found that the claimants had not signed the joint memo. Only the lawyers from both sides and a representative of the insurance company had signed it. Because of this, the court cancelled the Lok Adalat award and decided that the appeal should be heard again on its merits.
The case was filed by the family of a man who died in a road accident in 2012. The accident happened while the family was going to a hospital. The father died, and the mother and son survived. The Motor Accident Claims Tribunal had earlier given compensation of ₹9,18,600 to the family. Later, the insurance company challenged this in the High Court.
During the case, the matter was sent to Lok Adalat. The insurance company claimed that a settlement of ₹7,82,000 was reached. However, the family said they never signed the settlement that reduced their compensation.
The court checked the joint memo and saw that the space for the claimants’ signatures was blank. Only the insurance company’s representatives and lawyers had signed it.
The court also referred to earlier judgments of the Kerala High Court. These judgments said that a lawyer’s signature alone cannot bind the client if the client has not signed.
The court further noted that the Supreme Court has also said that a Lok Adalat award is valid only when all parties sign the joint memo.
Based on this, the court cancelled the Lok Adalat award and restored the case to the High Court for fresh hearing.
The court also mentioned the case of Kirti v. Oriental Insurance Company Limited (2021). It said that a lawyer cannot give up the legal rights of a client without their consent.
Advocate Shiriya S. Katagimath appeared for the petitioners. Advocate S.K. Kayakamath and Advocate Mahesh Wodeyar appeared for the respondents.
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