Explanation:

The correct answer is option 'B' - Ashok Mehta Committee.

The Ashok Mehta Committee, also known as the Committee on Panchayati Raj Institutions, was established in 1977 by the Government of India. The committee was headed by Ashok Mehta, a politician and social activist, and it was tasked with studying the functioning of Panchayati Raj institutions in India and making recommendations for their improvement.

Key Points:
- The Ashok Mehta Committee submitted its report in 1978, and one of its key recommendations was the creation of Nyaya Panchayats.
- Nyaya Panchayats are meant to provide a decentralized system of justice at the grassroots level in rural areas.
- The committee recommended the establishment of Nyaya Panchayats at the village level, with the power to adjudicate and resolve disputes relating to civil matters, petty criminal cases, and social issues.
- Nyaya Panchayats were intended to provide quick and inexpensive justice to the rural population, reducing the burden on higher courts and promoting local self-governance.
- The committee also recommended that Nyaya Panchayats should consist of elected representatives from the village and should have the power to impose fines, issue injunctions, and enforce their decisions.
- The recommendations of the Ashok Mehta Committee were incorporated into the Constitution through the 73rd Amendment Act of 1992, which provided for the establishment of Panchayati Raj institutions at the village, intermediate, and district levels.
- The 73rd Amendment Act also gave states the power to enact legislation for the establishment, composition, and functions of Nyaya Panchayats.
- However, the establishment of Nyaya Panchayats has been uneven across states, with some states implementing the recommendations of the committee more effectively than others.

In conclusion, it was the Ashok Mehta Committee that recommended the creation of Nyaya Panchayats as part of its broader recommendations for strengthening Panchayati Raj institutions in India.