The Supreme Court has stated that a Lok Adalat cannot pass an order to pay the insurance money when there was no compromise between the parties, in the case, Life Insurance Corporation vs Suresh Kumar. Lok Adalat cannot take over the function of the regular courts. In this case, the Lok Adalat tried to arrive at a compromise between the parties, but failed. Then it passed an order to LIC to pay Rs 1 lakh to the claimant. LIC appealed to the high court, which dismissed it. However, the Supreme Court allowed LIC’s appeal and stated that the Lok Adalat and the high court committed serious error.

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