BENGALURU: Coming across several writ petitions challenging the alleged fraud due to compromise decrees being passed based on fabricated powers of attorney in property disputes by trial courts and referring such matters to Lok Adalats for compromise, the Karnataka High Court issued nine general directions to be followed by trial courts and Lok Adalats.
Allowing a petition by Renuka from Mumbai, Justice Suraj Govindaraj quashed the compromise decree dated July 26, 2014 passed by the Lok Adalat and restored the original suit. Renuka, the original owner of the property, alleged that a person claiming to be his power of attorney holder committed fraud by filing a compromise petition in the Lok Adalat without her knowledge.
She alleged that Gajanan from Keshwapur in Hubballi filed the suit against her, represented by the power of attorney holder, Ramanand, seeking for specific performance of an alleged agreement dated April 25, 2014 which is alleged to have been executed by Ramanand.
In the suit, a notice was ordered to Ramanand without serving a notice Renuka. Ramanand had filed a compromise petition even before the return of notice. The petition having been filed before the court, the matter was referred to the Lok Adalat, where a compromise was recorded by the conciliators and compromise decree was directed to be passed.
HC’s directives
When a compromise petition is filed, court has to record it but not refer to Lok Adalat
Matter be referred only to Lok Adalat if there is no settlement before the court and parties request to do so
Separate order sheet should be maintained when matter is referred to Lok Adalat
Ascertain if parties are present personally and verify their identities
Ascertain if the concerned party has been served with notice
Examine original power of attorney and return it after mentioning in order
Secure presence of party and obtain signature rather than power of attorney