JUDGEMENT
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(1.)Leave granted.
(2.)Madhya Pradesh State Legal Services Authority, the appellant herein, has filed the instant appeal challenging the propriety of orders dated February 27, 2012 passed by the High Court of Madhya Pradesh in Writ Petition No. 1519 of 2012, which was filed by one Rakesh Kumar Jain (respondent No.2 herein) impleading Prateek Jain (respondent No.1 herein) as the sole respondent. Essentially the lis was between respondent Nos. 1 and 2. Respondent No.1 had filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as the 'Act') against respondent No.2. Matter reached before the Additional Sessions Judge in the form of criminal appeal. During the pendency of the said appeal, the matter was settled between the parties. On their application, the matter was referred to Mega Lok Adalat. However, the concerned Presiding Officer in the Lok Adalat did not give his imprimatur to the said settlement in the absence of deposit made as per the direction given in the judgment of this Court in Damodar S. Prabhu v. Sayed Babalal H., 2010 5 SCC 663. Against the order of Additional Sessions Judge, a writ petition was filed by respondent No.2 but the same is also dismissed by the High Court, accepting the view taken by the Additional Sessions Judge.
(3.)From the aforesaid, it would be clear that the matter in issue was between respondent Nos. 1 and 2. The appellant comes in picture only because the parties had approached the Mega Lok Adalat organised by the appellant. The reason for filing the present appeal is the apprehension of the appellant that if the settlement arrived at in the Lok Adalats are not accepted by the Courts, one of the essential function and duty of Legal Services Authority cast upon by the Legal Services Authorities Act, 1987 (hereinafter referred to as the '1987 Act') would be greatly prejudiced and, therefore, it is necessary to straighten the law on the subject matter. Acknowledging the significance of the issue involved, permission was granted to the appellant to file the special leave petition and notice was issued in the special leave petition on December 06, 2012. Operation of the impugned order of the High Court was also stayed in the following words:
"In the meantime, having regard to the objects to be achieved by the provisions of the Legal Services Authorities Act, 1987, the operation of the order passed by the Lok Adalat-I, Gwalior, Madhya Pradesh, on 30th July, 2011, and that of the High Court impugned in this petition, shall remain stayed."