In Brief
Canara Bank sought recovery of Rs 2,40,583 plus interest from G.S. Jayarama through the Permanent Lok Adalat at Mangalore under the Legal Services Authorities Act 1987. When the respondent failed to appear, the Lok Adalat awarded the full amount in 2014 without conducting mandatory conciliation proceedings. The respondent challenged this award, and the High Court set it aside. The Supreme Court upheld the High Court's decision on the narrow ground that the Permanent Lok Adalat failed to follow mandatory conciliation steps. The Court clarified that Permanent Lok Adalats do have adjudicatory powers—distinct from ordinary conciliatory Lok Adalats—but such powers only arise after conciliation has been conducted and failed, even if a party does not appear.
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