Kerala High Court: Lok Adalat Can Entertain Complaints Regardless Of Pecuniary Value

In Prasanth P Kumar v. State of Kerala, the Kerala High Court held that a Lok Adalat can entertain complaints irrespective of pecuniary value, provided the matter falls within its territorial jurisdiction under Section 19(5) of the Legal Services Authorities Act, 1987. Justice Harisankar V. Menon observed that the statute speaks only about “territorial jurisdiction” and does not impose any pecuniary limits on Lok Adalats or Taluk Legal Services Committees.

The case arose from a sale agreement dispute where the respondent had paid more than ₹90 lakh as advance consideration to the petitioners. Since the sale transaction failed, the respondent approached the Adoor Taluk Legal Services Committee seeking refund of the amount. The Committee passed an award recording the petitioners’ undertaking to repay ₹98.35 lakh and accepted post-dated cheques issued by them. However, when the cheques were dishonoured and execution proceedings were initiated, the petitioners challenged the award before the High Court alleging fraud and lack of jurisdiction.

Rejecting the fraud allegations, the Court noted that the petitioners had voluntarily appeared before the Lok Adalat along with a lawyer and there was no evidence of coercion. On jurisdiction, the Court relied on earlier precedents including Thomas @ Thomas v. Florance and an Andhra Pradesh High Court ruling to hold that Lok Adalats are not restricted by pecuniary limits. Accordingly, the writ petition was dismissed.