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Issues involved: Jurisdiction of permanent Lok Adalat to decide disputes on merits.
Summary: Issue 1: Jurisdiction of permanent Lok Adalat The permanent Lok Adalat allowed the claim of the Respondent under an Endowment Assurance Policy, despite finding no scope for compromise between the parties. The Supreme Court held that the Lok Adalat exceeded its jurisdiction by deciding the matter on merits, as it is not authorized to adjudicate disputes in such a manner. The Court set aside the orders of the Lok Adalat and the High Court, emphasizing that the Lok Adalat cannot act as a regular Court. Issue 2: Relief granted to Respondent The Court appreciated the Appellant-Corporation's willingness to release the claimed amount of Rs. 1 lakh to the Respondent under the Policy. The Court directed the Corporation to release the amount within eight weeks, acknowledging their cooperation. However, the Court clarified that this relief is specific to the current case and should not be considered a precedent. In conclusion, the appeal was allowed with no costs imposed, highlighting the importance of adhering to the jurisdictional limits of the Lok Adalat and ensuring that it functions within its designated scope.
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