PLA Award Upheld in Insurance Dispute: P&H High Court Refuses Interference, Reiterates Limited Scope of Certiorari Jurisdiction

Case Name: Bajaj General Insurance Company Ltd. v. Permanent Lok Adalat and Others

Date of Judgment: 21.04.2026

Citation: CWP-11860-2026

Bench: Hon’ble Mr. Justice Jagmohan Bansal

Held: The High Court held that an award passed by a Permanent Lok Adalat is final and binding under Section 22E of the Legal Services Authorities Act, 1987, and can be interfered with in writ jurisdiction only in cases of jurisdictional error, procedural illegality, or violation of principles of natural justice.

Summary: The petitioner-Insurance Company challenged the award passed by the Permanent Lok Adalat (PLA), Ludhiana, directing payment of ₹1,50,000/- along with interest and ₹20,000/- as compensation to the insured.

The dispute arose when the insured, running a bakery shop, suffered theft of goods and sought compensation under an insurance policy obtained through the bank. The claim was not processed by the bank, leading the insured to approach the PLA.

The Insurance Company contended that the policy covered only fire risks and not theft, and that liability, if any, lay with the bank. However, the PLA held that the insurer could not rely on exclusion clauses in the absence of proper disclosure and directed it to pay compensation with liberty to recover the amount from the bank.

The High Court examined the statutory framework under Section 22E of the 1987 Act and emphasized that PLA awards are final and binding, akin to a civil court decree. It reiterated that writ jurisdiction is supervisory in nature and does not permit reappreciation of evidence or substitution of findings.

Relying on settled principles governing writ of certiorari, the Court held that interference is permissible only where there is a jurisdictional error or violation of natural justice. In the present case, no such infirmity was found, and the PLA had acted within its jurisdiction after granting due opportunity to the parties.

Decision: The High Court dismissed the writ petition, declining to interfere with the award of the Permanent Lok Adalat. It upheld the direction requiring the Insurance Company to pay compensation to the insured with liberty to recover the amount from the bank.