All NotesCivil LawArbitration and Conciliation Act, 1996

Arbitration and Conciliation Act, 1996

Gram Nyayalayas and Village-Level Justice

The Gram Nyayalayas Act, 2008 was enacted to take the court to the village. It provides for a court at the intermediate panchayat level, presided over by a judicial officer of the rank of a first class magistrate, which must travel to the villages within its jurisdiction, is not bound by the law of evidence, must attempt conciliation before deciding, and disposes of both civil and criminal matters of the kinds listed in its Schedules. The statute came into force on 2 October 2009. Its difficulty is not design but implementation: very few of the courts contemplated have been established.

The scheme of the Act, and the reason so few Gram Nyayalayas exist

1. The Background

Two ideas meet in the Act. The first is the indigenous tradition of the panchayat, which resolved disputes within the village by settlement rather than by adjudication, and which the Nyaya Panchayats established under State legislation after independence attempted to revive with limited success. The second is the constitutional obligation in Article 39A to secure that the operation of the legal system promotes justice on a basis of equal opportunity, and the finding of the Law Commission that the ordinary civil court, located at the taluk or district headquarters, is physically and financially beyond the reach of the rural litigant.

2. Establishment and the Nyayadhikari

  • Establishment. The State Government, in consultation with the High Court, may establish one or more Gram Nyayalayas for every panchayat at the intermediate level, or for a group of contiguous panchayats, and its headquarters is located at the headquarters of that panchayat.
  • The presiding officer. A Nyayadhikari, appointed by the State Government in consultation with the High Court, having the qualifications of a judicial magistrate of the first class and drawing the same salary and powers, with preference in appointment to members of the Scheduled Castes, the Scheduled Tribes, women and other classes as the Government may specify.
  • A mobile court. The Nyayadhikari must periodically visit the villages within his jurisdiction and, with the prior consent of the parties, hold sittings there, so that the litigant does not travel.

3. Jurisdiction and Procedure

  1. Criminal jurisdiction. Offences and the classes of case specified in the First Schedule, tried by the summary procedure, with plea bargaining available.
  2. Civil jurisdiction. The suits, claims and disputes specified in the Second Schedule, which cover the ordinary rural civil dispute: rights to property, use of common land and water, wages, and claims under specified welfare legislation. The State Government may amend the Schedules.
  3. Conciliation first. The Gram Nyayalaya must make an effort to bring about a settlement in a civil dispute, and may use conciliators appointed for the purpose; only on failure does it proceed to decide.
  4. Procedure. It is not bound by the rules of evidence, and follows such procedure as it considers just, subject to the principles of natural justice and to the rules the High Court may prescribe.
  5. Appeal. In a criminal case to the Court of Session, and in a civil case to the District Court, in each case to be heard and disposed of within six months.

⚠ Why it has not worked as intended

The Act leaves establishment to the State Governments. A Gram Nyayalaya requires a judicial officer, staff, premises, a vehicle for the mobile sittings and a budget, and States that are short of judicial officers for their existing courts have not created new ones. A small fraction of the thousands of courts contemplated have been notified, and a smaller fraction are functioning. The Supreme Court has more than once called on the States to report on establishment. The lesson is the familiar one that a statute which depends on State funding and on the availability of judicial personnel achieves what those two permit, and no more.

4. Comparison with the Other Village-Level Forums

Forum

What it is

Binding effect

Gram Nyayalaya

A court presided over by a judicial officer, with civil and criminal jurisdiction

Its judgment and order are those of a court, appealable as the Act provides

Nyaya Panchayat

A body of elected or nominated laymen under State legislation, now largely defunct

Limited jurisdiction; decisions of a court of limited powers

Lok Adalat

An organised sitting for settlement, with a judicial officer and two others

An award deemed a decree, final and not appealable

Community mediation

A panel of three under Chapter X of the Mediation Act, 2023

A settlement, not enforceable as a decree

5. Related Topics and Provisions

Topic or provision

Connection

ADR and Access to Justice

The constitutional setting of Article 39A

Lok Adalat

The other machinery that takes settlement to the litigant

Mediation

Community mediation under Chapter X of the Act of 2023

History and Development of ADR in India

The panchayat tradition and the Nyaya Panchayats

Gram Nyayalayas Act, 2008

Establishment, jurisdiction, procedure and appeal