- (1.) Heard learned counsel for the parties. By this writ petition, petitioner has challenged the ex-parte order dated 01.02.2007 and award dated 07.02.2007 passed by the Permanent Lok Adalat, Jamshedpur in P.L.A. Case No. 34 of 2006.
(2.) According to the petitioner, the petitioner is private finance institution engaged in the business of granting automobile loan under hypothecation agreement for private and commercial vehicle. The respondent no. 1 was granted a loan for purchasing a Tata LPT 2512 Truck under the hire purchase agreement for a sum of Rs. 8,40,000/-, which was required to be paid back by the respondent no. 1 alongwith interest in 48 monthly installments. The respondent no. 1 had become defaulter after payment of certain installments and as per clause -6 of the Hypothecation agreement, the petitioner has took possession of the vehicle. The respondent no. 1 filed a claim petition before Permanent Lok Adalat, Jamshedpur being PLA Case No. 34 of 2006 for a claim of Rs. 8, 55,088/- under the different heads from the opposite party/petitioner herein under Section 22A of the Legal Services Authorities Act, 1987.
(3.) It is a case of the petitioner that the Permanent Lok Adalat has proceeded ex-parte deciding the claim on merit by directing the petitioner-Company to pay a sum of Rs.6, 50,000/- to the applicant or to return the truck to the applicant within two months of this order. Learned counsel for the petitioner assails the impugned order and the award on the ground that the services rendered by the petitioner as financial institution in the nature of loan for purchasing of vehicle under hire-purchase agreement is not one of the Public Utility Services, which is covered under the definition of 22A of the Legal Services Authorities Act, 1987. It is further submitted that Permanent Lok Adalat, has decided the claim on merit without following the procedure prescribed under Section 22 (C) (4) to (7) of the Legal Services Act by making an attempt to conciliate and/or frame terms of settlement, offered to the rival parties to arrive at compromise over the same before adjudicating the same on merit under Section 22(C)(8) of the Legal Services Act .;