Litigants Settle For Less As Process Becomes Punishment; Judges Rejected Lower Settlements At Lok Adalat : CJI DY Chandrachud

Through a series of case anecdotes from the Special Lok Adalat organised by the Supreme Court, the Chief Justice of India DY Chandrachud on Saturday highlighted the inherent problems in the judicial process, due to which parties often feel tempted to end tiresome litigations by accepting settlements even below their legal entitlements.

The CJI was speaking at the commemoration function of the Special Lok Adalat week that began on July 29 and ended on August 2. During this week, seven benches of the Court heard Lok Adalat matters every day afternoon, attempting to settle cases after directly interacting with the parties.

Citing a motor accident case in which the claimant was ready to accept a settlement offer of 5 lakhs enhancement in compensation despite being entitled to Rs. 8 lakhs enhancement, he said that people often accept any settlement they are offered as they are fed up with the judicial process and just want to get away from courts.

“This is also a problem which we see as judges. The process is the punishment, and that is a cause for concern for all of us judges. So very often we say we will not allow this matter to be settled. Because the settlement reflects the pre-existing inequalities in society. So as judges we try and say that we will not settle it and we'll try and get you a better outcome”, the CJI said.

He cited an example where Justice Vikram Nath rejected a settlement offer of Rs. 1 lakh, and instead awarded Rs. 6 lakhs in addition to what was settled in the Lok Adalat with consent.

He cited another case involving a 90% disability settlement in which a small amount was agreed upon. Parties are ready to accept any sort of settlement because they want to get out of the system, the CJI said. He shared that an increased settlement was reached with the insurer's cooperation. The CJI praised public sector insurance companies for their responsiveness and ethical commitment, in the Special Lok Adalat.

Similarly, the father of a 17-year-old son who died in a road accident, himself 85% disabled, saw his compensation increased from Rs. 3.84 lakhs by the MACT to ₹7.86 lakhs by the High Court, with an additional Rs. 4,00,000 from the Special Lok Adalat.

The CJI underscored the need for institutionalizing the process of dispensing justice through Lok Adalats, ensuring that it is not a one-off initiative but a part of the design. He acknowledged that institutions are slow to change, often facing numerous objections, but maintained that once a change is implemented, it becomes a lasting part of the system.

“I hope that we will now institutionalize this process of dispensing justice through Lok Adalat because it's been one of my initiatives that whatever we do as a court must be institutionalized. It shouldn't be that it is just a one-off initiative, which is then forgotten for the future, unless until 15 years later somebody else picks it up. We must ensure that it becomes part of our processes and systems.”

The CJI highlighted that unlike in district courts, in the Supreme Court, the judges do not see the faces of the people involved in cases. Chief Justice Chandrachud emphasized the importance of remembering the human element behind each case.

“And the people for whom we render justice in the supreme Court are in that sense invisible to us. That I feel is a little bit of a drawback of the work of the Supreme Court. But as experienced judges who worked at the bar or judges who have grown up from the high courts, now into the Supreme Court, we always try and remember the face behind the cause which comes to us. Because only when you understand the face behind the cause which comes to us that you realize that in that sense, we are not distinct or separate from every person who is in the courtroom, whether it's a member of the bar, whether it's court staff, whether it is the litigant. We are in that sense not distinct or separate from each other, we are all bound together as one human chain in this indefinable bond of humanity which defines our existence. And this Lok Adalat was just a reminder that though we are at the apex of the Indian judicial system, we are in that sense so closely and deeply associated with the lives of our citizens.”

CJI Chandrachud acknowledged the extensive cooperation and multi-stakeholder involvement in organizing the Special Lok Adalat. He emphasized that the Supreme Court, though located in Delhi, serves all of India, with a diverse registry that brings a wealth of knowledge from across the country

The CJI shared that a distinguished former civil servant was surprised by the Supreme Court's involvement in smaller cases, reflecting a common misconception that the court only handles big ticket cases that make the front pages of newspapers.

The CJI said that the Constitution, as framed by stalwarts like Dr. Ambedkar, envisioned the Supreme Court as an institution serving a society where there was a lack of access to justice, not just dealing with a limited number of constitutional cases like the US Supreme Court.

The CJI explained that the Lok Adalat panels were constituted with two judges (in his case, three) and two bar members, including one senior advocate from the SCBA and one advocate from SCAORA. This structure aimed to give advocates ownership of the institution, reinforcing that it is not solely run by judges. He noted that judges and advocates learned a lot from each other, and the involvement of lawyers helped ensure more effective settlements by addressing potential pitfalls and ensuring thorough resolutions.

He highlighted the importance of involving the Bar in these initiatives to reinforce the message that the legal profession is dedicated to more than just earning a livelihood, but to the broader cause of delivering justice.

“Making it a part of institutional design and making the Bar a part of this initiative, I think is a huge change for the better to send a message across that lawyers and us are truly engaged in one endeavor. It's not that the lawyers are only engaged in earning money for themselves. Of course they have to earn their livelihoods. Who denies that? Just at the bottom of it all, we are here because we have livelihoods as well. But there's something else that motivates us as judges, as lawyers, and what motivates us more as judges and lawyers, is this cause of delivering justice to common citizens.”

Secretary General of the Supreme Court, Atul Kurhekar detailed the preparatory process of the Lok Adalat which began in April 2024 when CJI Chandrachud proposed the idea. A monitoring committee of the Supreme Court and an executive body of registrars were formed to implement the directions. Extensive discussions with the legal services authority at various levels were held to identify cases suitable for settlement, and the registry pinpointed such matters, he said.

Kurhekar said that under CJI Chandrachud's leadership, various citizen-centric schemes have been introduced to bring justice to litigants' doorsteps, leveraging virtual modes to achieve significant success in the Special Lok Adalat.

In the event, scholarship cheques were distributed to 1,645 children who lost both parents to COVID-19. Each scholarship amounts to Rs. 45,000 per year for four years, in collaboration with Coal India Limited. Additionally, letters of compassionate appointment in Coal India were handed over to 424 candidates identified in pre-litigation cases.

Union Law Minister Arjun Ram Meghwal said that mediation is a part of Indian culture, citing Lord Krishna's attempt to mediate between the Kauravas and Pandavas in the Mahabharata. Meghwal acknowledged the settlement of over 1,000 cases during the Special Lok Adalat, including civil, matrimonial, and land acquisition disputes. He stressed the importance of resolving disputes amicably whenever possible.