The correct answer is Both 1 and 2.

In News

• The High Court of Karnataka and the Karnataka State Legal Services Authority (KSLSA) have created history in settlement of cases.

• What is a Lok Adalat?
  • Lok Adalat is one of the alternative dispute redressal mechanisms, it is a forum where disputes/cases pending in the court of law or at pre-litigation stage are settled/ compromised amicably.
  • The Lok Adalats are formed to fulfil the promise given by the preamble of the Indian Constitution– securing Justice – social, economic and political of every citizen of India. 
• Constitutional basis:
  • Article 39A of the Constitution provides for free legal aid to the deprived and weaker sections of the society and to promote justice on the base of equal opportunity.
  • Articles 14 and 22(1) of the Constitution also make it compulsory for the State to guarantee equality before the law.
• Statutory provisions:
  • Under the Legal Services Authorities Act, 1987 Lok Adalats have been given statutory status. Hence, Statement 1 is correct.
• Final award:
  • The decision made by the Lok Adalats is considered to be a verdict of a civil court and is ultimate and binding on all parties. Hence, Statement 2 is correct.
• No appeal:
  • There is no provision for an appeal against the verdict made by Lok Adalat.
  • But, they are free to initiate litigation by approaching the court of appropriate jurisdiction by filing a case by following the required procedure, in exercise of their right to litigate.
• Court fee:
  • There is no court fee payable when a matter is filed in a Lok Adalat. If a matter pending in the court of law is referred to the Lok Adalat and is settled subsequently, the court fee originally paid in the court on the complaints/petition is also refunded back to the parties.