In Brief
In a partition suit, the parties reached a compromise whereby plaintiffs relinquished property rights for monetary consideration. The Lok Adalat recorded the settlement as a decree. Two days later, some plaintiffs alleged fraud and sought to set aside the compromise. The High Court, without reasons, recalled the Lok Adalat's order. The Supreme Court held that a Lok Adalat's compromise decree has finality under the Legal Services Authorities Act, 1987, and cannot be set aside without reasoned grounds. Fraud must be proved strictly and conclusively. Since the plaintiffs had accepted payment and raised no contemporaneous objections, the allegations failed. The Court restored the Lok Adalat's order and allowed the appeal.
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