Aparesh Kumar Singh, J. - (1.) HEARD the parties. In this writ petition the award of the Permanent Lok Adalat in Pre -Litigative Case No. 1259 of 2004 dated 30.06.2006 passed by the Permanent Lok Adalat, Dhanbad is under challenged by the petitioner -New India Assurance Company Limited whereby, the learned Court has awarded a sum of Rs. 5,40,000/ - as compensation to the respondent Nos. 1 to 9 and directed the petitioner to pay the same within 30 days from the date of award failing which the same shall be paid with interest @ 6% from the date of filing claim petition till the date of payment.
(2.) THE short facts of the case are that one Paresh Rai died in a road traffic accident and respondent herein filed claim in Permanent Lok Adalat seeking compensation from the insurance Company. It is the case of the petitioner company that the permanent Lok Adalat, thereafter, proceeded to adjudicate the claim raised in connection with Motor Vehicle Accident on merits and passed the award in the manner indicated hereinabove which is contrary to the mandate of Section 22(C)(8) of the Act 1987. Learned counsel for the petitioner also submits that there was no joint consent between the parties submitted before the Permanent Lok Adalat to decide on the issue agreed between the parties. However, the Permanent Lok Adalat did not follow the steps as required to be undertaken by framing the terms of settlements offering it to both the parties and thereafter on agreement of parties either making the award or on failure to agree only, thereafter, proceeding to decide the dispute on merits as contemplated in Section 22(C)(8) of the Act 1987.
(3.) LEARNED counsel for the petitioner also submits that the legal position in this regard is no longer res integra. So far as, the procedure as has to be followed by the Permanent Lok Adalat before adjudicating the dispute on merits between the parties in a pre litigation stage, the said legal position has been settled in the case of State Bank of India, Dhanbad Vs. State of Jharkhand & Anr. in W.P.(C) No. 1449 of 2008 by the judgment of this Court reported in : 2009 (3) JCR 374 (Jhr). It is further submitted that even the Division Bench of this Court in W.P.(C) No. 1975 of 2007 in the case of M/s. Oriental Insurance Company Limited, Kutchery Road, Ranchi Vs. Bodya Oraon & Anr. vide order dated 30th April, 2012 held that the Permanent Lok Adalat has power to adjudicate upon the dispute, however, after following the procedure provided under Section 22(C) of the Act of 1987.;