1. When case come into default, rather than move into Litigation, we can use this as an alternative tool to resolve disputes. Lok Adalat is also a mediation but this will happen before the judicial officer and the Award (conclusion) passed by the authority is legally valid as like a court order.  

Process:

• Identify the NPA cases and give a request letter by POA holder on behalf of the company to “District Legal Service Authority (DLSA)” or “State Legal service Authority (SLA)” along with supporting documents.
• At a time, we can refer to 50-100 cases.
• After verifying the documents by legal service authority, they will fix one date to resolve the disputes.
• Notice being sent to both the parties to come and appear on a specified date to resolve their dispute.
• Notice can be issued to the parties with giving sufficient time (At least 15 days).
• Sitting Judge or Member secretary of DLSA will be acting as conciliator.  
• On the Adalat date, if both the parties appear, the matter can be discussed and resolved in the presence of the Conciliator.
• Once they come into compromise/conclusion after all negotiation, the conciliator will pass an Award (record the details in writing along with claim amount and repayment details duly signed by both the parties followed by conciliator signature).  
• This Award is as equal as Court order and all this process carried with free of cost.
• Even customer can approach Lok Adalat directly to settle his loan or resolve the disputes with follow the same process as mentioned above.

Stage: We can refer NPA cases to Lok Adalat. 

Communication Mode: By post or Hand delivery. 

Outcome:

• Customer may appear and resolve/settle his disputes/claims.
• Customer may appear and did not agree to settle the matter.
• Customer/banker may not appear.

Further action: Since this is a pre-litigation process, we cannot take any action against the customer even if the customer fails to appear or is not ready to settle the matter before Adalat.