The present justice delivery system in India is expensive, time consuming, procedure- ridden, technically complex and difficult to comprehend which prevents the poor especially the marginalized sections from approaching the legal system to get their grievances redressed. Panchayats in India which has been an integral part of India's heritage and a living proof of village democracy can play a pivotal role in bringing justice at the local level. It is in this context that streamlining of the institutions like Nyaya Panchayats emerges for providing doorstep justice that is speedy, transparent and cost effective. The grassroots justice systems if established in letter and spirit can ensure people oriented system of justice which can provide greater scope for mediation and compromise. Furthermore, it can reduce burden of the judiciary by minimizing arrears, facilitating speedy disposal of cases, and adjudication of disputes without the assistance of lawyers and render justice with the knowledge of local culture and tradition. Such institutions which are closer to people, can save time, trouble and expenses of parties and witnesses.