Lok Adalats
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What is a Lok Adalat in the context of Indian banking?
A Lok Adalat is an alternative dispute resolution forum established under the Legal Services Authorities Act, 1987, where disputes including those related to bank loans and recoveries are settled amicably outside the court system.
Under which section of the Legal Services Authorities Act, 1987 is the Lok Adalat constituted?
Section 19 of the Legal Services Authorities Act, 1987.
Under which Act are Lok Adalats established in India?
Lok Adalats are established under the Legal Services Authorities Act, 1987, which provides the statutory framework for their constitution and functioning.
What is the legal status of a Lok Adalat award under the Code of Civil Procedure?
It is deemed a decree of a civil court and is final.
What is the maximum monetary limit for cases that can be referred to a Lok Adalat organised by a bank?
Banks typically refer NPA accounts with outstanding dues up to Rs. 20 lakh to Lok Adalats, though the limit may vary based on RBI guidelines and bank policy.
What is a Permanent Lok Adalat primarily set up to deal with?
Pre-litigation disputes in public utility services.
What type of award does a Lok Adalat pass, and is it legally binding?
A Lok Adalat passes an award by consensus between the parties, and such an award is deemed a decree of a civil court, making it final and binding on both parties.
Can a Permanent Lok Adalat pass an award even without the consent of both parties?
Yes, if conciliation fails, it can decide the dispute.
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