PUNJAB NATIONAL BANK Vs. SURESH KUMAR NAGPAL

JUDGEMENT

(1.) THE petition is a challenge by the bank to an order passed by the Permanent Lok Adalat upholding a claim by the depositor who stated that he and his wife held a Fixed Deposit Receipt (FDR) for Rs. 10,000/ - with the respondent -bank at Faridabad. He had given the details of the deposit number and the date of deposit. His joint holder, his wife had died on 10.5.1996 and he had filed a petition claiming the amount stating that after the initial expiry of the period of deposit, he had allowed for extension on an assurance given by the banker that it would stand automatically extended and there was no further need for taking a fresh deposit. The case was brought before the Permanent Lok Adalat. The bank took a plea that the original record has been weeded out and it was most likely that the amount had been re -paid by the bank to the depositors. The bank relied on certain circular to show that it was not necessary for them to retain the deposit that had matured for more than 10 years and since the transaction relied on a deposit which was made more than 20 years back, it was not possible for them to secure the details of the actual encashment by the depositor himself.

(2.) THE Permanent Lok Adalat in its order has observed that every effort was made for amicable settlement between the parties but no amicable settlement could be arrived at. The Permanent Lok Adalat has further observed that it has proceeded to decide the petition on merits and required the parties to adduce evidence in support of the respective averments. In this case, the order passed by the Permanent Lok Adalat reveals that the respondent had tendered his affidavit, copy of the FDR and the death certificate of his wife to show his entitlement. The senior Manager of the bank has also given his evidence and filed the copy of the circular and the copies of the statement and copy of muster listing of the FD accounts, transfer from manual system to computer system. The Permanent Lok Adalat has observed that the bank ought to have the details of the FDR, which was specifically spelt out in Ex. P.2, a plea that the amount must have been paid cannot be inferred by the only fact that the documents were not available to show that the FDR amount was still outstanding. The Permanent Lok Adalat, therefore, passed the award for the amount set forth in the FDR with interest.

(3.) IN my view, the proposition, as stated, seems too wide for application to the present facts of the case. The settlement is all times is a desirable goal, for, it puts to an end to litigation and takes a case out of the system with no prospect of being challenge in higher tiers of the adjudicatory bodies. The Legal Services Authority Act 1987 introduced Chapter VIA, contemplates several situations and provides for a process of how the settlement shall be arrived at by initiating proceedings for conciliation between the parties. Sub -clause (3) of Section 22C sets out the preliminary stage of directing the parties to file written statement. Sub -clause (4) exhorts the Permanent Lok Adalats to conduct conciliation proceedings between the parties in a manner it thinks fit. Clause (5) sets out the process in that it directs that the parties shall be assisted in their attempt to reach an amicable settlement. Clause (6) underscore the duty of every party in the application to cooperate in good faith with the Permanent Lok Adalats and sub -clause (7) states that if there was an element of settlement in such proceedings, the Permanent Lok Adalats shall pass an award in terms of such settlement. Clause (3) to (7) will, therefore, details various stages of settlement which parties may secure to themselves with the active assistance of the Lok Adalats. Clause (8) is residual power granted to the Permanent Lok Adalats. Clause (8) states that where the parties fail to reach an agreement, the Permanent Lok Adalat shall, if the dispute does not relate to any offence, decide the dispute. The decision in dispute is made under a procedure which is contemplated under Section 22D. Section 22D of the Act reads as under: -