Lok adalat


Dear Sir/Ma’am,

 

We have a partnership firm for which we have obtained cash credit facilities from a Nationalized Bank. We have not been able to repay the said facilities in time and the matter has been referred to settle before Lok Adalat (Organised by DRT) and we have received summon from Lok Adalat to appear before the said authority.

 

Now I want to know, what are the formalities we have to comply in order to appear before the Lok Adalat. This is urgent, please reply.

 

Regards,

 

Sondip Goswami

 
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Lawyer in Hyderabad.Email:ramachary64@gmail.com

Simple. the main party must be appear from both yourside and bank side with relevant papers at the time & date mentioned on summons.

 
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Sir,

 

Thank you for your answer. I want to know that, is their any necessity to execute any authorization letter or Vakalatnama in the name of the person who will appear on behalf of the Partnership firm.

 

Regards,

 

Sondip Goswami

 
Reply   
 

To prove that you are the authorised person on behalf of your company, you may carry a letter to that effect signed by the authorised signatory of the company.  Please work out the details and after discussion with your company about the maximum amount that your company can offer to settle the issue, you may appear before the forum.

 
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Dear sir,

Probably this is the last opportunity available to you to get rid of your debt burden through this Lok Adalat where in all the parties including the Banker, the Court and yourself are interested to settle the matter.

In lok adalat only matter are settled where parties reach to  a final settlement otherwise the case is sent back to the designated court itself.

You can  ask the banker / Court to deduct the penal interest and you account must be declared NPA at earlist possible time and you must be given the benefit of one time settlement as provided by reserve bank of India’s  Non discretionary Mandatory guidelines where by you will able to reduce the claim of the bank quite substantially.

You can take advantage in negotiation by explaining that whatever bank has paid court fees to file case against you will be refunded to bank hence that much amount must be reduced.

Try to liquidate the debt at this juncture itself and start your life afresh from here onward.

Capt Gurvinder Singh, Advocate

Mob: 09314142509/ 09999555726

jaimeet_2000@yahoo.com

www.captgurvindersingh.com

 
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Respected Sir, 

Please help me....

... My parents had made a limit from canara bank for our shop in year 2000. Its principal amount was 90,000 (on my mother) and 1,48,000(on my father)....and my parents had given 4 FDRs of total 75000 which became 1,03,000. Bank splitted these FDRs into one FDR of 75000 and remaining 27000 in form of interest of limit.

Now that 75000 FDR has become around 1 lakh and bank has filed two cases ( my father and mother) in Permanent lok adalat for recovery of limits of 3,60,000 but its principal amount is 2,38,000. We have given FDR of around 1 lakh to bank......and now bank demand around 70,000 to 80,000.

Our shop is closed since 2006....for 8 years......because my father has become mentally disturbed....and my mother has a cancer infection and I am not in condition to pay the amount which bank demands.

Please help me.....how to talk to bank manager.

and

can this be settled in 25,000 to 30,000.

 
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Mr. Prateek,

Your parents borrowed substantial amounts from a bank in the year 2000 (nearly 14 years back) and defaulted in repayment of the debts. You must know that the interest applied to the loan accounts are periodically compounded and loaded to the loan accounts according to the banking practice. The amount due might have swelled to bigger and burdensome figure as on today. Under these circumstances no banker will venture to settle your accounts accepting Rs.25 or 30 thousands. Your FDRs offered as security for the above loans may to some extent be sufficient to adjust a portion of the debt claimed.  Your personal problems or inconveniences cannot form good grounds for seeking appropriate remedy. Settlement in 'Lok Adalat' is not so simple. Lok Adalat is only a body to record terms and settlements acceptable to both the sides i.e. creditor and borrower. Lok Adalat has no power to pressurise bank to arrive to a meager figure for settlement. It can at the most ask the bank to waive penal interest (which would be around 2% of your total debt). If no settlement can be recorded, the file may be returned to the court/authority from where it was moved to Lok Adalat. This factual and legal position I wish to explain you so that you understand the position. However pursue the bank (at higher level) and explain them the present situation so that they may take an appropriate decision in the matter and consider some concessions if possible in your cases.

 
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