# Smt. Sukhpali Devi v. Civil Judge (S.D.) & Ors

- **Citation:** (2016) 5 ILRA 262
- **Court:** High Court of Judicature at Allahabad
- **Decided:** 2016-05-25
- **Bench:** Ram Surat Ram (Maurya
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/smt-sukhpali-devi-v-civil-judge-s-d-ors-43942
- **Pages:** 8

## Text

262 INDIAN LAW REPORTS ALLAHABAD SERIES

20. In the fitness of things and to secure the ends of justice, this Court deem it proper to direct
the District Inspector of Schools, Hardoi, to examine the matter in the light of the fact that
petitioners are in service last more than ten years and even are being paid salary and in the event he
finds that there is no defect in the selection process then financial concurrence shall be given in the
manner as has been given to S/Sri Arvind Kumar and Gurudutt Pandey by the District Inspector of
Schools vide order dated 29.1.2005. It is also made open to the District Inspector of Schools to
recover the salary paid earlier from the Management of the College in case refusal of financial
concurrence by the DIOS on finding any irregularity in the selection process or short coming in the
candidature of the petitioners.

21. Subject to the aforesaid observations and directions, this writ petition is disposed of
finally.
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ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 25.05.2016

BEFORE

THE HON'BLE RAM SURAT RAM (MAURYA), J.

Matters Under Article 227 No.- 2880 Of 2016

Smt. Sukhpali Devi ...Petitioner
Versus
Civil Judge (S.D.) & Ors. ...Respondents

Counsel for Petitioner:
Ayub Khan

Counsel for Respondents:
CSC

Held:

Where a suit is decreed on the basis of a compromise verified and accepted by the Lok Adalat,
the plaintiff is entitled to refund of the entire court fee paid on the plaint.

It is immaterial whether the compromise was arrived at prior to reference or during proceedings
before the Lok Adalat, once the matter is referred and disposed of by Lok Adalat, the provisions of Section
21 of the Legal Services Authorities Act, 1987 and Section 16 of the Court Fees Act, 1870 are
attracted.

A distinction between compromises arrived at voluntarily by parties and compromises arrived at
due to persuasion of Lok Adalat is illegal and unsustainable in law.
5 All. Smt. Sukhpali Devi Vs Civil Judge (S.D.) & Ors.

263
Section 89 CPC read with Section 21 of the Legal Services Authorities Act, 1987 and Section 16
of the Court Fees Act, 1870 mandates refund of court fee when a dispute is settled through Lok
Adalat.

Once a case is referred to Lok Adalat and decided in terms of settlement, the award is deemed to
be a decree of a civil court, entitling the plaintiff to statutory refund of court fee.

The order refusing refund of court fee on the ground that Lok Adalat merely "verified" the compromise is
erroneous and contrary to law.

Case Law discussed:

Salem Advocate Bar Association v. Union of India
AIR 2003 SC 189

Vasudevan v. State of Kerala
AIR 2004 Kerala 43

Mudavangadan Abbas v. Kurrippurathodi Mayinkutty & Ors.
2012 (3) KLJ 560

Vipin Trivedi v. Mohanlal Sharma
LAWS (MPH)-2011-5-3

Vallabh Das Gupta v. Geeta Bai
2004 (3) MPLJ 37 (DB)

(Delivered by Hon'ble Ram Surat Ram (Maurya), J.)

1. Heard Sri Ayub Khan, for the petitioner and Standing Counsel, for State of U.P.

2. This petition has been filed against the order of Civil Judge (S.D.) dated 14.03.2016,
dismissing the application of the petitioner for refund of Court Fee paid in the suit and mandamus
directing Civil Judge (S.D.) to pass order for refund of the Court Fee to the petitioner, paid in the
suit.

3. The petitioner filed a suit (registered as O.S. No. 160 of 2014) for recovery of Rs.
19,99,920/- from respondents-2 and 3. According to the valuation, advolerum Court Fee of Rs.
1,50,600/- has been supplied on plaint. The defendants, on appearance before the Court, admitted
their liability. The suit was referred to Lok Adalat, held on 12.09.2015. Where the parties filed a
written compromise. Signatures of the parties on written compromise were identified by their
counsel. Lok Adalat verified the compromise in presence of the parties and by its order dated
12.09.2015 decreed the suit in terms of compromise.

4. The petitioner filed an application dated 05.11.2015 (registered as Misc. Case No. 138 of
2015) for refund of Court Fee of Rs. 1,50,600/- supplied in the suit, under Section 21 of Legal
Services Authorities Act, 1987 read with Section 16 of Court Fee Act, 1870. The application was
264 INDIAN LAW REPORTS ALLAHABAD SERIES
heard by Civil Judge (Senior Division), who by impugned order dated 14.03.2016 held that a
perusal of compromise dated 12.09.2015 shows that parties compromised their dispute outside the
Lok Adalat. Lok Adalat merely verified their compromise. As such suit was not decided by Lok
Adalat. The applicant has not stated that compromise was filed due to persuasion of Lok Adalat nor
suit was referred to Lok Adalat on request of the parties, informing about probability of
compromise. The parties filed an application 27-C, stating therein that matter has been
compromised between the parties and they wanted to refer the suit to Lok Adalat. In the facts of the
case, the suit was not actually decided by Lok Adalat as such the plaintiff is not entitled for refund
of the Court fee. On these findings the application was dismissed. Hence this petition has been
filed.

5. I have considered the arguments of the counsel for the parties and examined the record.
Article 39-A of the Constitution directs that the State shall secure that the operation of the legal
system promotes justice, on a basis of equal opportunity, and shall, in particular, provide free legal
aid, by suitable legislation or schemes or in any other way, to ensure that opportunities for securing
justice are not denied to any citizen by reason of economic or other disabilities. With as view to
achieve the aforesaid objects, Parliament enacted The Legal Services Authorities Act, 1987 to
constitute legal services authorities to provide free and competent legal services to the weaker
sections of the society to ensure that opportunities for securing justice are not denied to any citizen
by reason of economic or other disabilities, and to organise Lok Adalats to secure that the operation
of the legal system promotes justice on a basis of equal opportunity. Provisions of law, which are
relevant for deciding controversy are quoted below:-

6. The Legal Services Authorities Act, 1987:-

Section 19. Organisation of Lok Adalats:- (1) ...........

(5) A Lok Adalat shall have jurisdiction to determine and to arrive at a
compromise or settlement between the parties to a dispute in respect --

(i) any case pending before; or

(ii) any matter which is falling within the jurisdiction of, and is not brought before,
any court for which the Lok Adalat is organised:

20. Cognizance of cases by Lok Adalats.--(1) Where in any case referred to in clause (i)
of sub-section (5) of Section 19,

(i)(a) the parties thereof agree; or

(b) one of the parties thereof makes an application to the court, for referring the case to
the Lok Adalat for settlement and if such court if prima facie satisfied that there are chances of
such settlement; or
5 All. Smt. Sukhpali Devi Vs Civil Judge (S.D.) & Ors.

265

(ii) the court is satisfied that the matter is an appropriate one to be taken cognizance of by
the Lok Adalat, the court shall refer the case to the Lok Adalat:

Provided that no case shall be referred to the Lok Adalat under sub-clause (b) of clause
(i) or clause (ii) by such court except after giving a reasonable opportunity of being heard to the
parties.

(2) Notwithstanding anything contained in any other law for the time being in force, the
Authority or Committee organising the Lok Adalat under sub-section (1) of Section 19 may, on
receipt of an application from any one of the parties to any matter referred to in clause (ii) of subsection (5) of Section 19 that such matter needs to be determined by a Lok Adalat, refer such matter
to the Lok Adalat, for determination:

Provided that no matter shall be referred to the Lok Adalat except after giving a
reasonable opportunity of being heard to the other party.

(3) Where any case is referred to a Lok Adalat under sub-section (1) or where a reference
has been made to it under sub-section (2) the Lok Adalat shall proceed to dispose of the case or
matter and arrive at a compromise or settlement between the parties.

(4) Every Lok Adalat shall, while determining any reference before it under this Act, act
with utmost expedition to arrive at a compromise or settlement between the parties and shall be
guided by the principles of justice, equity, fair play and other legal principles.

(5) Where no award is made by the Lok Adalat on the ground that no compromise or
settlement could be arrived at between the parties, the record of the case shall be returned by it to
the court, from which the reference has been received under sub-section (1) for disposal in
accordance with law.

(6) Where no award is made by the Lok Adalat on the ground that no compromise or
settlement could be arrived at between the parties, in a matter referred to in sub-section (2), that
Lok Adalat shall advise the parties to seek remedy in a court.

(7) Where the record of the case is returned under sub-section (5) to the court, such court
shall proceed to deal with such case from the stage which was reached before such reference under
sub-section (1).

Section 21-Award of Lok Adalat.-- (1) Every award of the Lok Adalat shall be deemed
to be a decree of a civil court or, as the case may be, an order of any other court and where a
compromise or settlement has been arrived at, by a Lok Adalat in a case referred to it under subsection (1) of Section 20, the court-fee paid in such case shall be refunded in the manner provided
under the Court Fees Act, 1870 (7 of 1870).
266 INDIAN LAW REPORTS ALLAHABAD SERIES

7. Experiencing with success of functioning of Lok Adalat, Parliament thought it proper that
the suits pending before the regular court in which there appears chance of compromise, be also
referred to Lok Adalat for its disposal. For that purpose Section 89 CPC was amended by Act No.
46 of 1999. Section 89 C.P.C. was amended as follows:-

89. Settlement of disputes outside the Court.--(1) Where it appears to the court that
there exist elements of a settlement which may be acceptable to the parties, the Court shall
formulate the terms of settlement and give them to the parties for their observations and after
receiving the observations of the parties, the court may reformulate the terms of a possible
settlement and refer the same for--

(a) arbitration;

(b) conciliation;

(c) judicial settlement including settlement through Lok Adalat; or

(d) mediation.

(2) Where a dispute has been referred--

(a) for arbitration or conciliation, the provisions of the Arbitration and Conciliation Act,
1996 (26 of 1996) shall apply as if the proceedings for arbitration or conciliation were referred for
settlement under the provisions of that Act;

(b) to Lok Adalat, the Court shall refer the same to the Lok Adalat in accordance with the
provisions of sub-section (1) of Section 20 of the Legal Services Authority Act, 1987 (39 of 1987)
and all other provisions of that Act shall apply in respect of the dispute so referred to the Lok
Adalat;

(c) for judicial settlement, the Court shall refer the same to a suitable institution or person
and such institution or person shall be deemed to be a Lok Adalat and all the provisions of the
Legal Services Authority Act, 1987 (39 of 1987) shall apply as if the dispute were referred to a Lok
Adalat under the provisions of that Act;

(d) for mediation, the Court shall effect a compromise between the parties and shall
follow such procedure as may be prescribed.]

8. By Act No. 46 of 1999 Section 16 of Court Fee Act, 1870 was amended as follows:-

16. Refund of fee.--Where the court refers the parties to the suit to any one of the mode
of settlement of dispute referred to in Section 89 of the Code of Civil Procedure, 1908 the plaintiff
5 All. Smt. Sukhpali Devi Vs Civil Judge (S.D.) & Ors.

267
shall be entitled to a certificate from the court authorising him to receive back from the collector,
the full amount of the fee paid in respect of such plaint.

9. In view of direction of Supreme Court in Salem Advocate Bar Assn. v. Union of India,
AIR 2003 SCC 189, High Court of Judicature at Allahabad framed Uttar Pradesh Civil Procedure
Alternative Dispute Resolution Rules, 2009 vide Noti. No. 404/VII-Nyaya-7-2009-5/2008, dated
August 13, 2009. Relevant Rules are quoted below:-

In exercise of the rule making power conferred under Part X of the Code of Civil
Procedure, 1908 and clause (d) of sub-section (2) of Section 89 of the said Code, and all other
powers enabling it in this behalf, the High Court of Judicature at Allahabad makes the following
rules:

1. Short title and commencement.--(1) These rules may be called the Uttar Pradesh
Civil Procedure Alternative Dispute Resolution Rules, 2009.

3. Procedure for directing parties to opt for alternative modes of settlement.--(a) The
Court shall, after recording admissions and denials at the first hearing of the suit under Rule 1 of
Order 10, and where it appears to the Court that there exist elements of a settlement which may be
acceptable to the parties, formulate the terms of settlement and give them to the parties for their
observations under sub-section (1) of Section 89, as the parties shall submit to the Court their
responses within thirty days of the first hearing.

(b) At the next hearing, which shall be not later than thirty days of the receipt of
responses, the Court may reformulate the term of a possible settlement and shall direct the parties
to opt for one of the modes of settlement of disputes outside the Court as specified in clauses (a) to
(d) of sub-section (1) of Section 89 read with Rule 1-A of Order 10, in the manner stated
hereunder:

Provided that the Court, in the exercise of such power, shall not refer any dispute to an
arbitration or to judicial settlement by a person or institution without the written consent of all the
parties to the suit.

Explanation.--For the purpose of this rule the words "terms of settlement" and the words
"terms of possible settlement" mean a summary of the dispute or summary of the remaining
dispute, respectively.

10. Supreme Court in Salem Advocate Bar Association. v. Union of India, AIR 2003 SCC
189, held that it is quite obvious that the reason why Section 89 has been inserted is to try and see
that all the cases which are filed in court need not necessarily be decided by the court itself.
Keeping in mind the law's delays and the limited number of Judges which are available, it has now
become imperative that resort should be had to alternative dispute resolution mechanism with a
view to bring to an end litigation between the parties at an early date. The alternative dispute
268 INDIAN LAW REPORTS ALLAHABAD SERIES
resolution (ADR) mechanism as contemplated by Section 89 is arbitration or conciliation or
judicial settlement including settlement through Lok Adalat or mediation. Sub-section (2) of
Section 89 refers to different Acts in relation to arbitration, conciliation or settlement through Lok
Adalat, but with regard to mediation Section 89(2)(d) provides that the parties shall follow the
procedure as may be prescribed. Section 89(2)(d), therefore, contemplates appropriate rules being
framed with regard to mediation.

11. Section 89 C.P.C. directs that where it appears to the court that there exist elements of a
settlement which may be acceptable to the parties, the Court shall formulate the terms of settlement
and give them to the parties for their observations and after receiving the observations of the
parties, the court may reformulate the terms of a possible settlement and refer the same for (c)
judicial settlement including settlement through Lok Adalat. Procedure for referring the dispute to
Lok Adalat has been given under Rule 3 of Uttar Pradesh Civil Procedure Alternative Dispute
Resolution Rules, 2009, which provides that the Court shall, after recording admissions and denials
at the first hearing of the suit under Rule 1 of Order 10, and where it appears to the Court that there
exist elements of a settlement which may be acceptable to the parties, formulate the terms of
settlement and give them to the parties for their observations under sub-section (1) of Section 89, as
the parties shall submit to the Court their responses within thirty days of the first hearing.

12. Under Section 19 (5) of Legal Services Authorities Act, 1987, Lok Adalat has jurisdiction
over the cases referred to it or directly came to it. Once the matter came before Lok Adlat, then it
has jurisdiction to pass award in terms of settlement between the parties. Section 89 C.P.C. castes a
duty upon the Court trying the suit that at first hearing while recording statements of the parties
under Order 10 Rule 1 C.P.C. to examine as to whether there exist elements of a settlement,
acceptable to the parties. Then the Court will formulate the terms of settlement and give them to the
parties for their observations under sub-section (1) of Section 89, as the parties shall submit to the
Court their responses within thirty days of the first hearing. If the parties agree for settlement of
their dispute, matter would be referred to Lok Adalat, for resolving the dispute through settlement.
The provisions of Section 21 of Legal Services Authorities Act, 1987 and Section 16 of Court Fee
Act, 1870 are applicable in both the cases.

13. In Vasudevan Vs. State of Kerala, AIR 2004 Kerala 43, Mudavangadan Abbas Vs.
Kurrippurathodi Mayinkutty and others, 2012 (3) KLJ 560, Madhya Pradesh High Court in
Vipin Trivedi Vs. Mohanlal Sharma, LAWS (MPH)-2011-5-3 and Vallabh Das Gupta Vs.
Geeta Bai, 2004 (3) MPLJ 37 (DB) held that once the suit is decided by Lok Adalat on settlement,
then the plaintiff would be entitled for refund of Court Fee paid in suit. By the impugned order
Court below has illegally carved out a distinction between the case where the parties voluntary
moved an application for reference of dispute to Lok Adalat and where, on possibility of
settlement, could referred the matter to Lok Adalat.

14. In view of the aforesaid discussions, the petition succeeds and is allowed. The order of
Civil Judge (S.D.) dated 14.03.2016, is set aside. The application of the petitioner for refund of
5 All. Chandrika Vs Shivnath & Ors.

269
Court Fee paid in the suit is allowed. Civil Judge (S.D.) Moradabad shall issue a certificate to the
petitioner for refund of entire Court Fee paid in O.S. No. 160 of 2014 forthwith.
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ORIGINAL JURISDICTION
CIVIL SIDE
DATED: ALLAHABAD 24.05.2016

BEFORE

THE HON'BLE RAM SURAT RAM (MAURYA), J.

Matters Under Article 227 No.- 3406 Of 2016

Chandrika ...Petitioner
Versus
Shivnath & Ors. ...Respondents

Counsel for Petitioner:
Santosh Kumar Mishra, Vinay Kumar Mishra

HELD:

Suit for cancellation of sale deed is maintainable before civil court. Cancellation is
main relief; revenue entries are consequential. Jurisdiction of civil court not barred.

CASE LAW DISCUSSED:

• Ram Padarath v. Second ADJ (FB)

• Bismillah v. Janeshwar Prasad (SC)

• Ram Awalamb v. Jata Shankar (FB)

• Suraj Bhan v. Financial Commissioner

(Delivered by Hon'ble Ram Surat Ram (Maurya), J.)

1. Heard Sri Santosh Kumar Mishra, for the petitioner.

2. This petition has been filed for setting aside the orders of Civil Judge (J.D.) dated
13.10.2014, deciding issue relating to jurisdiction of civil court to try a suit for cancellation of sale
deed, in respect of agricultural land, in favour of the plaintiff and District Judge dated 13.03.2016,
dismissing the revision of the petitioner against aforesaid order.

3. Shivnath (respondent-1) filed a suit (registered as Suit No. 2694 of 1997) for cancellation of
sale deed dated 05.05.1997, allegedly executed by him in favour of Chandrika (the petitioner). It
has been stated in the plaint that the plaintiff and defendant-2 are real brothers and original resident