Lok Adalat & ADR

Our work includes settlement of motor accident claims, cheque dishonour cases, bank recovery matters, matrimonial and family disputes, land and property disputes, and consumer complaints through the National, State, and District Lok Adalats, along with representation before the Permanent Lok Adalats for public utility services and in court-annexed mediation. We draft settlement agreements and compromise petitions that are final and binding, and we advise on the tax and stamp aspects of a settlement.

A settlement reached before a Lok Adalat has the force of a decree of a civil court. It is final and binding on the parties, it cannot be appealed, and no court fee is payable on the amount settled. For matters that are suitable for settlement — motor accident claims, cheque dishonour cases, matrimonial disputes, and many others — the Lok Adalat route is faster, cheaper, and more certain than a contested trial.

The key is knowing which matters are suitable for settlement and which are not. A client who settles a strong case for less than its value has not been well served. We advise clients honestly on the strength of their position, the likely outcome of a contested proceeding, and the range within which a settlement makes sense. We then negotiate on their behalf, and where a settlement is reached we ensure it is recorded in terms that are clear, enforceable, and complete.

Pre-litigation mediation, introduced as a mandatory step for certain categories of civil disputes, is another area where we assist clients. The mediation process, conducted before a trained mediator at a court-annexed mediation centre, gives the parties an opportunity to resolve the dispute before it becomes a full-scale litigation. We prepare clients for mediation, attend with them, and advise on whether a proposed settlement should be accepted.

Court-annexed mediation, available at various stages of a pending case, is a further option. Where a case is already in court and the parties are willing to explore settlement, the court may refer the matter to mediation. We have participated in mediation proceedings at the mediation centres attached to the courts of Andhra Pradesh and have helped clients reach settlements that ended long-running disputes.

Where settlement is reached it is recorded before the Lok Adalat or the mediation centre attached to the courts, up to the High Court of Andhra Pradesh, and given the force of a decree. We also advise on the income tax treatment of settlement amounts and on the stamp duty payable on settlement deeds.