(1.) Petitioner who had obtained loan for purchase of truck to the tune of Rs. 5.24 lacs from the State Bank of India Zonal Office, Jammu in the year 2004 and was saddled with the liability to pay an amount of Rs.4,34,864/- alongwith interest @ 11.75% per annum with quarterly, rests and costs in terms of judgment and decree dated 17.8.2010 passed by the learned Additional District Judge Bank Cases, Jammu in ex parte, is aggrieved of the award passed in execution proceedings by the Lok Adalat on 25.1.2012 by virtue whereof he was directed to pay an amount of Rs. 04,80,000/- as full and final settlement in two installments, first installment of Rs.2,80,000/- payable before 7.2.2012 and second installment of Rs.2.00 lacs payable by 29.2.2012. The impugned award has been assailed on the following grounds:
(2.) Learned counsel for petitioner contended that since reference to Lok Adalat was bad and counsel was not authorized to enter into settlement with the bank, the impugned award was rendered illegal. Per contra, learned counsel for bank submitted that reference to Lok Adalat was made at the instance of petitioner who had engaged a counsel authorized to enter into settlement in terms of conditions embodied in Vakalatnama and that the settlement was for the benefit of petitioner. Thus, petitioner cannot be permitted to wriggle out of the liability in terms of the impugned award passed by the Lok Adalat in execution proceedings.
(3.) Heard and considered.