Legal Services Authorities Act 1987 Quiz

Questions and Answers

What is true about the decisions made by Lok Adalat?

Decisions are binding and cannot be appealed. (correct)

Decisions are only valid for a year.

Decisions can be appealed in higher courts.

Decisions require majority consent from all parties.

What is the suggested repayment period for reducing NPAs after a settlement in Lok Adalat?

One to three years. (correct)

Two to four years.

Within six months.

One to five years.

Which of the following statements about filing a case with Lok Adalat is accurate?

Filing a case does not extend the limitation period. (correct)

Filing a case extends the limitation period.

Filing a case involves significant court fees.

Filing a case allows parties to immediately settle.

What role do officers representing institutions have in Lok Adalat settlements?

They must have adequate authority to accept compromises. Signup and view all the answers

What happens if a borrower defaults on payments after a compromise settlement?

The entire debt becomes payable and legal actions can be initiated. Signup and view all the answers

Who serves as the Patron-in-Chief of the National Legal Services Authority?

The Chief Justice of India Signup and view all the answers

What is the main function of the Lok Adalats?

To organize settlements for civil disputes Signup and view all the answers

Which category of accounts should banks refer to Lok Adalats for Compromise Settlement according to RBI guidelines?

Accounts in 'doubtful' and 'loss' categories Signup and view all the answers

What is the maximum amount due for a case to be referred to Lok Adalats by banks without requiring a DRT arrangement?

Rs.20.00 Lacs Signup and view all the answers

What role does the District Judge play in the District Legal Services Authority?

Chairman Signup and view all the answers

Which body organizes Lok Adalats for each taluk or mandal?

Taluk Legal Services Committee Signup and view all the answers

Who presides over the Taluk Legal Services Committee?

The senior-most Judicial Officer Signup and view all the answers

Which of the following authorities can organize Lok Adalats?

High Court Legal Services Committee Signup and view all the answers

Study Notes

Legal Services Authorities Act 1987

Enacted to provide legal services throughout India.
Central Government established the National Legal Services Authority (NLSA) to implement the Act's objectives.
Chief Justice of India serves as Patron-in-Chief; an Executive Chairman is nominated by the President, in consultation with the Chief Justice.
NLSA collaborates with governmental and non-governmental organizations to promote legal services for the underprivileged.
Each State Government must establish a Legal Services Authority responsible for conducting Lok Adalats.
District Legal Services Authority is formed for each district, chaired by the District Judge, to operate Lok Adalats at the district level.
A Taluk Legal Services Committee can be created for each taluk or group of taluks; chaired by the senior-most Judicial Officer in the area.

Lok Adalats

Established under the Legal Services Authorities Act 1987 to facilitate alternative dispute resolution.
Various levels of authorities (State, District, Supreme Court, High Court, and Taluk) can organize Lok Adalats.
Lok Adalats are deemed civil courts under the Civil Procedure Code, with jurisdiction over civil matters; they can also handle specific criminal cases through Permanent Lok Adalats.
Banks benefit from referring Non-Performing Asset (NPA) accounts for Compromise Settlement.
Both disputed and undisputed accounts up to Rs. 20 Lacs can be referred; cases above this amount can be addressed if arranged by the Debt Recovery Tribunal.
RBI guidelines specify that "doubtful" and "loss" categorized accounts must be referred for settlement.
No court fees are required for new disputes referred to Lok Adalats; if unresolved, parties can pursue court action.
Decisions made by Lok Adalats are consent decrees and hold legal binding status; appeals against these decisions are not permitted.

Settlement Process

Settlement terms are flexible and determined by each institution's Board of Directors.
Repayment periods for settlements should ideally be between one to three years to effectively reduce NPAs.
Agreements contain default clauses enabling banks to initiate legal action if installment payments aren’t met.
Lok Adalats aim for immediate resolution of disputes with on-the-spot settlements.
Representatives of institutions at Lok Adalats must have authority to finalize compromise agreements within defined policy boundaries.
Initiating a case at Lok Adalat does not extend the limitation period for legal actions.

Description

Test your knowledge on the Legal Services Authorities Act 1987, which established the framework for legal aid and representation in India. This quiz covers the structure, functions, and key figures involved in the implementation of this important legislation. Perfect for law students and legal professionals alike.