Formation of Lok Adalat system was inspire by the Panchayati Raj system of India.Panchayat or village assemblies excited in ancient India as self - governing institution which had distinct and well defined functions. It represents not only a collective will, but also the collective wisdom of the entire rural community.
Art.40 of Indian constitution which enshrines one of the DPSP lays down that the state shall take steps to organise a village panchyat and ensure them with such power and authority as may be necessary to enable them to function as a self- government.
Lok Adalat based on the prinivpri of "Panch parmeshwar"of gram panchayat. Word lok Adalat derived from a sanskrit word "Loka" which means people and "adalat"which means court, Lok Adalat means people's court. The concept of Lok Adalat is an innovative contribution in thetIndian judiciary system and it succeeded in providing a supplementary forum to the victims for a satisfactory settlement of their disputes. It a alternative dispute resolution, where dispute settlement through conciliation and compromise and it aacept the cases pending in the regular courts .Sometimes the process of the settlement by the lok Adalat is often confused with arbitration where arbitrator appoints to resolve the dispute between the parties and announce decision,it is adjudicatory in nature,but there is no adjudication in lok Adalat.
It is constituted by the National legal services authority (NALSA) under the legal services authority act,1987 to privpro free legal services to the weeker section of the society.The 1st Lok Adalat was held in march 14,1982 at Junagadh in Gujarat.
National level lok Adalat are held at regular levels on a single day throughout the country in all court's (Supreme court to Taluk court) .
The cases range from matrimonial dispute,partition dispute,civil matters, cheque bounce,Motor accident claims and etc.
Advantages of Lok Adalat:.
A)Low cost requirement.
C)Unburdening of courts,
D) Lok Adalat try to maintain cordial realtions.