HAMZA.P. Vs. CANARA BANK

JUDGEMENT

(1.) The only issue raised is the jurisdiction of the Lok Adalat to pass Exhibit P3 award. The award passed is under the Legal Services Authorities Act, 1987 [for brevity "LSA Act"] in the presence of the parties to the anticipated lis, with their consent and on an agreement between the parties.

(2.) The petitioner herein had availed a loan, with security offered by way of mortgage of immovable properties, from the respondent-Bank and defaulted it. The Bank approached the Lok Adalat constituted at Ottapalam, where the transaction took place and the mortgaged properties are situated, with a petition under Section 19 of the LSA Act. The amounts due from the petitioner at that point of time was Rs.30,11,068/-. It was settled for an amount of Rs.21,00,000/-, to be paid on or before 05.11.2015. On default, it was agreed that the respondent-Bank would be entitled to recover the dues of Rs.30,11,068/- with interest at the rate of 12% per annum from the date of the award.

(3.) The petitioner having not complied with the award, the respondent-Bank was before the Debts Recovery Tribunal [for brevity "DRT"], Ernakulam, which passed Exhibit P4 order, deeming the award passed by the Lok Adalat to be a decree. By Exhibit P4, the Bank was permitted to recover a sum of Rs.32,00,147/- with interest on the sum of Rs.30,11,068/- at the rate of 12% per annum from 08.08.2015. The liability of the petitioner as per the terms of the agreement, based on which the loan was availed, as on 18.09.2017 was Rs.45,95,957/-. As per the Lok Adalat award, it is Rs.37,73,321/- with future interest only on the amounts as awarded by the Lok Adalat.