Legal Question in Banking Law in India

Hi i'm involved in a NI 138 case (defendant) for the past few years. Last month the complainant's lawyer requested my lawyer to do an out of court settlement and I agreed to it and was told by my lawyer to come over and hand over the agreed amount DD in the name of the complainant. To do so I created a DD and handed over to my lawyer, who now says that in addition to the DD for the agreed amount i.e. 70,000 Rs./- against the disputed amount of 1,00,000 Rs /-, I will also have to pay 15% of the original amount i.e. 15,000 Rs. /- to the state legal head, dont remember the name of the body but that seems to be some statutory body and there is a recent ruling by the supreme court that in case of a compromise or out of court settlement, the defendant has to pay that, which means I end up paying 70000 RS. to the complainant and plus the 15000 to the statutory body. I wish to know the procedure for settlement/compromise and whether I have to pay the same?


Asked on 12/17/11, 12:10 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

Probably the amount of Rs.15000/- is to the Legal Services Authority who conducted the Lok Adalat for settlement of N.I.Act Sec.138 cases. You act as per the advice of your Advocate. Recently the Supreme Court has ruled that a Lok Adalat's award is a civil court decree and can be enforced.

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Answered on 12/19/11, 5:37 pm


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