2024 · GS Paper 2 · Q2 · 10 marks

Explain and distinguish between Lok Adalats and Arbitration Tribunals. Whether they entertain civil as well as criminal cases?

In short

Lok Adalats settle disputes by consent with a final, non-appealable award, while arbitral tribunals adjudicate on merits under a party agreement. Lok Adalats entertain civil and compoundable criminal cases, but arbitral tribunals take only civil and commercial disputes.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction

Both Lok Adalats and arbitral tribunals carry disputes outside the courts' adversarial route in pursuit of Article 39A's equal justice. Lok Adalats rest on the Legal Services Authorities Act, 1987; arbitral tribunals on the Arbitration and Conciliation Act, 1996.

How the Two Forums Work

Key Points
•

Lok Adalat

A bench led by a judicial officer settles pending or pre-litigation disputes by compromise; its award is deemed a civil decree, final and non-appealable (Section 21).

•

Conciliation, not adjudication

State of Punjab v. Jalour Singh (2008) held that a Lok Adalat cannot decide a dispute; without agreement the case returns to court.

•

Arbitral tribunal

Party-chosen arbitrators decide on merits under an arbitration agreement, and the award is enforceable like a decree, open to challenge only under Section 34.

Key Distinctions and Civil-Criminal Reach
•

Lok Adalats and criminal cases

They take nearly all civil matters, but Section 19(5) bars non-compoundable offences, so only compoundable criminal cases such as cheque bounce are settled.

•

Arbitration and criminal cases

Booz Allen and Hamilton v. SBI Home Finance (2011) held criminal offences, matrimonial and insolvency matters non-arbitrable, so arbitration stays confined to civil and commercial disputes such as contracts, construction and trade.

•

Permanent Lok Adalats

Created in 2002 for public utility services, they may decide on merits when conciliation fails.

Conclusion
Lok Adalats entertain civil and compoundable criminal cases, while arbitral tribunals take only civil and commercial disputes. With the Mediation Act, 2023, they bring speedy, affordable justice within every citizen's reach.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: Lok Adalat vs Arbitral Tribunal. Lok Adalat vs Arbitral Tribunal. Comparison of Lok Adalat and Arbitral tribunal
Diagram: Lok Adalat vs Arbitral Tribunal

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Question from the official UPSC Civil Services (Main) Examination 2024 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.

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