The cases to be dealt with by the Lok Adalat will be decided out of regular courts with the mutual consent of the parties. The judgement or orders of the Lok Adalat will be binding on both the parties. There will be no appeal from the judgement of the Lok Adalat.

The Lok Adalat will function under aegis of the Delhi legl services authority, set up under the Legal Services Authorities Act, 1987. The act aims at establishing a nation-wide network for providing free and competent legal services to the weaker-sections of the society on the basis of equal opportunity.

At the apex, National Legal Services Authority (NLSA), has been set up to monitor and oversee the legal aid programmes throughout thecountry. The patron-in-chief of the authority at the apex is the Chief Justice of India and the executive chairman of the authority the seniormost judge of the Supreme Court after the Chief Justice of India.