Counsel Cannot Settle Cases in Lok Adalat Without Written Authority: Gauhati High Court

The Gauhati High Court has held that a settlement recorded in a Lok Adalat must be arrived at with the free consent of the parties, and that counsel cannot enter into a compromise without written authorisation.

The case arose from a challenge to a settlement recorded in a National Lok Adalat in an appeal pending before the Assam State Consumer Disputes Redressal Commission.

The Court found that no authorised representative of the company was present and no authority letter was produced.

Holding that such a settlement defeats the object of the Legal Services Authorities Act, 1987, it set aside the Lok Adalat order and directed the Commission to decide the appeal on merits.

[Mahindra & Mahindra Financial Services Ltd v. Hakim Uddin]