| Preferring the lok adalat route to the time-consuming | | | | loans and education loans, he said. |
| process of fighting civil cases in courts, banks have | | | | Lok adalats, the most popular of all alternative disputes |
| started queuing up at the Tamil Nadu State Legal | | | | redressal (ADR) mechanisms, are very effective in |
| Services Authority (TNSLSA) to recover bad personal | | | | bringing about expeditious remedy because the |
| loans and credit card dues. | | | | settlements are done after mutual consultation and |
| On January 6, the authority conducted an exclusive | | | | consent. The settlement is final, as neither of the |
| mega lok adalat for the Central Bank of India and | | | | parties can appeal against the lok adalat ruling. No |
| helped the bank to dispose of 226 cases and recover | | | | court fee too needs to be paid for the exercise. |
| a whopping Rs 11.2 crore on a single day. A total of | | | | Pointing out that the Legal Services Authority Act had |
| 1,430 cases had originally been listed for hearing. | | | | provisions to hear pre-litigation cases, Mathivanan said |
| Now, the State Bank of India is all set to have its own | | | | it would reduce the burden on judicial forums, as in |
| special lok adalat at the TNSLSA premises on | | | | case of non-settlement of these disputes they would |
| February 3. The ICICI Bank is also scheduled to have | | | | end up as civil suits in courts. |
| its own special adalat on February 5. | | | | Asked about the nature of cases being listed for |
| “Encouraged by the hugely successful adalat of the | | | | hearing on Wednesday, Srinivasan said they |
| Central Bank earlier this month, the SBI has decided to | | | | concerned personal loans up to Rs 1.25 lakh and small |
| bring 1,693 pre-litigation cases before the special adalat. | | | | business/trade loans up to Rs 1.5 lakh. Personal loans |
| Six adalat benches will be created for the purpose,” | | | | alone involve Rs 19.6 crore as claim amount, he said. |
| T Mathivanan, member-secretary of the TNSLSA, said | | | | “We have participated in several lok adalats in the |
| here on Monday. | | | | past too. They were beneficial both to the borrowers |
| “Together, these cases involve a claim amount of | | | | and the bank,” he said. |
| Rs 20.62 crore, and we hope that our customers as | | | | Last year, up to the month of November alone, the |
| well as the bank itself would benefit from the | | | | TNSLSA had resolved 42,761 cases, and settled an |
| exercise,” said the SBI deputy general manager, V | | | | estimated claim amount of Rs 172.8 crore. |
| Srinivasan. The cases involve personal loans, home | | | | |