S.J.MUKHOPADHAYA. A.C.J. - (1.) In this appeal, the only question required to be determined is Whether the Permanent Lok Adalat has jurisdiction to decide insurance claim of an insurer?
(2.) The appellant, an authorized distributor of Sony Product having Its registered Office at Kilburn Colony-Hinoo, Town and District - Ranchi obtained a Burglary and House Breaking Policy from the Respondent - United India Insurance Company Ltd. (hereinafter referred to as the Insurance Company), effective for the period from 29th August, 2001 to 31st August, 2002. On 18th/19th August, 2002, at midnight, a burglary took place in the Godown of appellant. He lodged F.I.R on 19th August, 2002 with Doranda Police Station, Ranchi u/s. 461/379 I.P.C. The appellant submitted a claim with the Insurance Company for a loss of Rs. 11,14,577/-, but it was not entertained. The Police submitted final form, but it was opposed by the Insurance Company; the matter is pending before the Court below. A complaint Case No. 255 of 2004 was filed by the appellant-before the District Consumer Forum, but it was not entertained, the consumer forum having no such jurisdiction to decide such insurance claim. The appellant, thereafter preferred a claim case, before the Permanent Lok Adalat, Ranchi reducing the claim amount to Rs. 9,80,000/-. It was registered as PLA Case No. 30/2006. On being noticed, the Insurance Company appeared, contested the case and raised the question of jurisdiction of Permanent Lok Adalat. It was argued that the insurance claim was not maintainable before Permanent Lok Adalat. The Permanent Lok Adalat, Ranchi entertained the claim for a Prelitigation Conciliation and Settlement u/s. 22-C of The Legal Services act, 1987 (hereinafter referred to as Act, 1987) and by order dated 4th January, 2004, answered the preliminary issue, in affirmative but against the Insurance Company. It held that the application for insurance claim was maintainable before the Permanent Lok Adalat. The said order having been challenged by the Insurance Company before this Court the learned Single Judge by impugned order dated 15thJuly, 2005 held that the Permanent Lok Adalat has no jurisdiction to decide the insurance claim and set aside the order passed by the Permanent Lok Adalat. Hence this appeal."
(3.) Chapter VI of Act, 1987 deals with 'Lok Adalat'. On the other hand, Chapter VI A inserted by Legal Services Authority (Amendment) Act, 2002 deals with 'Permanent Lok Adalat'. Section 19 relates to 'Organisation of Lok Adalats' and Section 20 deals with 'cognizance of cases by Lok Adalats'. In the case of State of Punjab & Others v. Phulan Rani and another, reported in (2004) 7 SCC 555, having noticed specific language used in sub-section (3) of Section 20, the Supreme Court held that the 'Lok Adalat' can dispose of a matter only by way of compromise or settlement between the parties if no compromise or settlement could be arrived at, no order can be passed by 'Lok Adalat'. Chapter VI A of Act, 1987 which deals with "Pre-litigation Conciliation and settlement", provides for establishment of 'Permanent Lok Adalats' at such places and for exercising such jurisdiction in respect of one or more Public Utility Services and for such areas as may be specified by the State authorities by means of a notification. Provision of 'Permanent Lok Adalats' has been made notwithstanding anything contained in Section 19 of the Act, 1987 which deals with Lok Adalats. 'Permanent Lok Adalats' can determine matter relating to 'Public Utility Service' as defined u/s. 22A, which includes insurance service, relevant provision of which is quoted hereunder : "22A. Definitions.- In this Chapter and for the purpose of Sections 22 and 23, unless the context otherwise requires : (a) "Permanent Lok Adalat" means a Permanent Lok Adalat established under subsection (1) of Section 22B; (b) "Public Utility Service" means any - (i) transport service for the carriage of passengers or goods by air, road or water; or (ii) postal, telegraph or telephone service; or (iii) supply of power, light or water to the public by any establishment; or (iv) system of public conservancy or sanitation; or (v) service in hospital or dispensary; or (vi) insurance service and includes any service which the Central Government or the State Government, as the case may be, may, in the public interest, by notification, declare to be a public utility service for the purposes of this Chapter.";