LOK ADALAT ➡ Lok Adalat is created under Legal Services Authority Act 1987. ➡ Cannot entertain

LOK ADALAT ➡ Lok Adalat is created under Legal Services Authority Act 1987. ➡ Cannot entertain dispute cases. Only compromise cases are eligible. No court fee is payable. ➡ Decisions are consent decrees. No appeal against these decrees. ➡ Civil Procedure Code is followed by these courts as they are like civil courts. ➡ Banks can also call Lok Adalt with application to High Court. ➡ Amount - Normal Lok Adalt : Up to Rs.20 lac (wef Aug03, 2004) ➡ Above the aforesaid cut-off of Rs.20 lac - DRT Lok Adalat. ➡ Eligible accounts - NPA (Loss and doubtful). ➡ Decree for principal and interest should be sought by banks as per RBI guidelines. ➡ After full payment discharge should be given. ➡ Repayment : Preferably down-payment. If it is instalments, max period is 1-3 years. ➡ As per Supreme Court direction personal loan cases up to Rs.10 lac, should preferably be settled

 

The chapter of LOK ADALAT completed. Thank you SIR.