Joseph KJ S/O Joseph v. Malanad Service Co-Operative Bank Ltd
2026-03-04
Soumen Sen, Syam Kumar V M
body2026
DailyLaw.ai
JUDGMENT : Soumen Sen , C.J. 1. The reference is arising out of an order passed by Justice Gopinath P. on 20.01.2026 with regard to the requirement of a certificate being obtained from the Registrar of the Co-operative Societies under Section 76 of the Kerala Co-operative Societies Act, 1969 (in short ‘the 1969 Act’) when an award was passed under Section 21 of the Legal Services Authorities Act, 1987 (in short, ‘the LSA Act’). 2. The writ petitioners had availed credit facilities from the Malanad Service Co-operative Bank Limited. Certain disputes between the petitioners and the Bank pending before the Registrar of the Co-operative Societies were referred to by the Registrar to the Lok Adalat. Admittedly, this is a dispute which can be referred to Lok Adalat and neither of the parties have argued or contended that these matters could not have been referred by the Registrar to the Lok Adalat. Following the reference, the parties entered into a settlement in accordance with the relevant rules that had culminated in an award under Section 21 of ‘the LSA Act’. The award was duly signed by the parties in the presence of their respective advocates and it conforms Order XXIII Rule 3 of the ‘CPC’. 3. The contention of the writ petitioners before the learned Single Judge appears to be that a certificate contemplated under Section 76 of ‘the 1969 Act’ read with Rule 72 and Form 12 are required to be obtained from the Registrar before the award can be put to execution, meaning thereby, the award now needs to be certified by the Registrar in the form prescribed in Form 12 before it can be put to execution. The learned counsel for the writ petitioners has referred to the aforesaid provisions and submitted that there are various modes prescribed under the said Act which are required to be followed for executing the award which is enforceable only after the Registrar issues the certificate in Form 12. It is submitted that certification is necessary as Form 12 would show that in the certificate, the Registrar is required to mention that no steps for execution of the said award under clauses (a), (b) or (c) of of the 1969 Act have so far been initiated. 4.
It is submitted that certification is necessary as Form 12 would show that in the certificate, the Registrar is required to mention that no steps for execution of the said award under clauses (a), (b) or (c) of of the 1969 Act have so far been initiated. 4. We are unable to accept the said submission having regard to the fact that ‘the LSA Act’ was enacted inter alia for the purpose of organising Lok Adalats to ensure that the operation of the legal system promotes justice on the basis of equal opportunity. Section 19 contemplates the organisation of Lok Adalats. Sub-section (5) of of ‘the LSA Act’ provides that a Lok Adalat shall have jurisdiction to determine and to arrive at a compromise or settlement between the parties to a dispute in respect of any case pending before; or any matter which is falling within the jurisdiction of, and is not brought before, any Court for which the Lok Adalat is organised, provided that the Lok Adalat shall have no jurisdiction in respect of any case or matter relating to an offence not compoundable under any law. It appears that the matters were referred to the Lok Adalat in which the parties have agreed to settle their dispute thus culminating in an award. For the proper understanding of the issue raised by the petitioners, it is necessary to refer to Section 21 of ‘the LSA Act’ which reads as follows: “21. Award of Lok Adalat.— (1) Every award of the Lok Adalat shall be deemed to be a decree of a civil court or, as the case may be, an order of any other court and where a compromise or settlement has been arrived at, by a Lok Adalat in a case referred to it under sub-section(1) of section 20, the court-fee paid in such case shall be refunded in the manner provided under the Court-fees Act, 1870. (2) Every award made by a Lok Adalat shall be final and binding on all the parties to the dispute, and no appeal shall lie to any court against the award. Section 21 of ‘the LSA Act’ equates an award of the Lok Adalat to a decree of a civil court and imputes an element of finality to an award and such decree shall be final and binding upon the parties.
Section 21 of ‘the LSA Act’ equates an award of the Lok Adalat to a decree of a civil court and imputes an element of finality to an award and such decree shall be final and binding upon the parties. Section 22(1) of the Act stipulates that the Lok Adalat shall have the same powers as civil courts under the ‘CPC’ for lis determination of the under ‘the LSA Act’. In view of the clear mandate of the said provision, the award passed by the Lok Adalat is equivalent to a decree of a civil court and it can be executed without any further certification by any authority under ‘the 1969 Act’ that required such certificates before enforcement if proceedings were allowed to be continued under the said Act and had culminated in an award. Once the dispute is referred to Lok Adalat and an award is passed, it has to follow the mandate of of ‘the LSA Act’ which means that the award would be treated as a deemed decree and would be enforceable by a civil court. 5. The apprehension expressed by the learned Single Judge that in the absence of the certification which required a mention whether any other mode of execution has been levied or any amount has been realised in the meantime is misplaced as the executing court can only execute the amount awarded and in such proceedings the judgment debtor can always contend that other mode of execution has been initiated or that the entire awarded amount or part thereof has already been paid. 6. On such consideration, the reference is answered, accepting the view expressed by Hon’ble Justice Gopinath P. in paragraph 5 of the order. The reference is thus disposed of. 7. The writ petitions may be placed before the Hon’ble Justice according to roster.