Anik

Responded 1 month ago

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A.Dear Client,

The resolution of loans typically occurs during the pre-litigation stage or within ongoing court proceedings. Lok Adalat, as an alternative dispute resolution mechanism, plays a significant role in settling disputes amicably. Lok Adalats are forums where disputes, either pending in a court of law or at the pre-litigation stage, can be resolved through compromise. These adalats have obtained statutory status under the Legal Services Authorities Act, 1987.

Primarily dealing with civil matters, Lok Adalats have the authority to issue summons for early settlement of pending cases, provided that the matter falls within the scope defined in section 19(5)(ii) of the Act. However, it is essential that no case is referred to the Lok Adalat without giving a reasonable opportunity to the other party to be heard.

Section 20(3) of The Legal Services Authorities Act, 1987 stipulates that when a case is referred to a Lok Adalat, the forum proceeds to dispose of the matter and arrive at a compromise or settlement between the parties. This underscores the role of Lok Adalats in facilitating amicable resolutions in legal disputes.
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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 1 month ago

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A.Dear Client,
The settlement of the loan is usually done at the pre-litigation stage and also in the course of pending court proceedings. Lok Adalat is one of the alternative dispute redressal mechanisms, it is a forum where disputes/cases pending in the court of law or at the pre-litigation stage are settled/ compromised amicably. Lok Adalats have been given statutory status under the Legal Services Authorities Act, 1987. Lok Adalat basically deals with civil matters and has the power to issue summons for appearance for early settlement of pending cases on the approach of either party for any matter referred to in clause (ii) of sub-section (5) of section 19 of the Act that such matter needs to be determined by a Lok Adalat. , provided that no matter shall be referred to the Lok Adalat except after giving a reasonable opportunity to be heard to the other party. As per Section 20(3) in The Legal Services Authorities Act, 1987, where any case is referred to a Lok Adalat under sub-section (1) or where a reference has been made to it under sub-section (2), the Lok Adalat shall proceed to dispose of the case or matter and arrive at a compromise or settlement between the parties. Reach out to an Advocate for guidance and steps.
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