ALAPATI VIVEKANANDA Vs. KARU VYASYA BANK LTD

JUDGEMENT

(1.) This revision is filed under Article 227 of the Constitution of India against the order made in PLC. No.76 of 2002, dt. 28-09-2002, before the Lok Adalat, Prakasam District at Ongole.

(2.) It appears that the petitioners herein obtained a loan from the Karur Vysya Bank Limited, respondent herein. At pre-litigation stage, the dispute was raised before the Lok Adalat. The Lok Adalat issued notices and pursuant thereto, the petitioners appeared before the Lok Adalat and agreed to pay an amount of Rs. 1,32,099/- (Rs. One lakh thirty two thousand and ninety nine only) on or before 31-01-.2003 to the Bank and in case of default, the Bank was entitled for a decree for Rs. 1.32,099/- with subsequent interest @ 12% per annum till realization. Aggrieved by the said order, the present revision is filed.

(3.) The learned counsel for the petitioners contended that the award passed by the Lok Adalat is contrary to law and is without any application or memorandum of compromise between the parties. An application for compromise etc., is mandatory for passing the award under Section 20 of Legal Services Authorities Act, 1987 ("the Act", for short). It is also stated that no opportunity was given to the parties before they were made to agree. The learned counsel further contends that absolutely no opportunity was given to the petitioners to defend their case and that the Lok Adalat is having jurisdiction only where a case is pending before any competent Court, and it is settled only when either of the parties or any one of the parties makes a request as required under Section 19(5) or Section 20 of the Act.