Gram Nyayalaya is a mobile court and exercises the powers of both Criminal and Civil Courts; the seat of the Gram Nyayalaya will be located at the headquarters of the intermediate Panchayat, but they will go to villages, work there and dispose of the cases.
The Gram Nyayalaya are supposed to try to settle the disputes as far as possible by bringing about conciliation between the parties and for this purpose, it can make use of the appointed conciliators. The judgment and order passed by the Gram Nyayalaya are deemed to be a decree and to avoid delay in its execution, the Gram Nyayalaya can follow summary procedure for its execution.
Gram Nyayalaya are courts of Judicial Magistrate of the first class and its presiding officer (Nyayadhikari) is appointed by the State Government in consultation with the High Court of the State concerned;
The Gram Nyayalaya will not be bound by the rules of evidence provided in the Indian Evidence Act, 1872 but shall be guided by the principles of natural justice and subject to any rule made by the High Court;
Appeal in criminal cases shall lie to the Court of Session, which shall be heard and disposed of within a period of six months from the date of filing of such appeal. Appeal in civil cases shall lie to the District Court, which shall be heard and disposed of within a period of six months from the date of filing of the appeal.
In terms of Section 3(1) of the Gram Nyayalayas Act, 2008, it is for the State Governments to establish Gram Nyayalayas in consultation with the respective High Courts. More than 5000 Gram Nyayalayas are expected to be set up under the Act. Around 194 such courts have been set up as on March 2015.