This statement is True.
Reasons :
1. Lok Adalat is an alternate mode of dispute resolution. It is set up by the government to settle disputes of consumers through compromise.
2. The cases which are pending in courts and which can be settled through compromise are transferred to Lok Adalat if, both the parties agree or one of the parties makes an application and the court sees a chance of compromise.
3. No court fees is charged by the Lok Adalat.
4. If the matter is not resolved in the Lok Adalat then it is returned to the regular court. Thus, The Lok Adalat resolves disputes in a very smooth manner and it can be rightly described as ‘people’s court’.