As I have mentioned in a previous answer, Section 21(2) of the Legal Services Authorities Act, 1987, lays down that every award made by a Lok Adalat shall be final and binding on all the parties to the dispute, and no appeal shall lie to any court against the award; but, while no regular appeal, suit, review, etc., can be filed against award of the Lok Adalat, it can be challenged under Article 226 / 227 of the Constitution before the high court on certain limited grounds.
However, from your question it appears that both parties want to settle the matter by way of compromise / agreement, in spite of the award of the Lok Adalat. You have used the word “cancel” for the award, which may be equivalent to the words “set aside”. While an award can be set aside only by a competent court, it may still be possible for both the parties to render the award unenforceable or redundant by agreeing not to get it executed.
Therefore, if both parties arrive at a compromise by way of an agreement and if they decide that the award of the Lok Adalat will not be executed or enforced, then they can do so and simply allow the award to become redundant by not enforcing it or not executing it.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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