- (1.) Heard learned counsel for the parties. The order dated 25.8.2006 passed by the Permanent Lok Adalat, Ranchi in PLA Case No. 63 of 2006 is under challenge whereby the petitioner-Insurance Company has been directed to pay Rs. 50,000/- to the respondent/claimants under Section 140 of the Motor Vehicles Act, 1988.
(2.) The grievance of the petitioner is that the Permanent Lok Adalat, without following the procedure prescribed under Section 22(C)(4) to (7) of the Act, has proceeded straightway and passed the order directing the petitioner-Insurance Company to make payment to the respondents/claimants, which is contrary to law laid down by this Court. Learned counsel for the petitioner submits that in Pre-Litigative Case claim was preferred by the claimants, petitioner-Insurance Company was issued notice to appear and thereafter, the Permanent Lok Adalat made no attempt to conciliate the dispute between the parties or frame any terms of settlement neither offered it to the rival parties to come to a compromise on the terms of settlement. It is submitted that adjudication on merit in a dispute before the Permanent Lok Adalat under Section 22(C)(8) is only permissible after failure of the parties to arrive at conciliation and/or to agree to the terms of settlement framed and offer to the rival parties by the Permanent Lok Adalat.
(3.) Learned counsel for the claimants are not in a position to dispute that the aforesaid exercise which was never undertaken by the Permanent Lok Adalat while passing the impugned order straightway directing the petitioner-Insurance Company to make a payment of Rs. 50,000/- under Section 140 of the Motor Vehicles Act, 1988.;