Law · Banking Laws and Lok Adalat
A bank manager wishes to file a case in the Lok Adalat to settle a defaulting borrower's Non-Performing Asset (NPA) account with a total outstanding amount of 15,00,000 rupees. Which of the following is true regarding the monetary jurisdiction of Lok Adalats organized under the Legal Services Authorities Act for pre-litigation banking disputes?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Lok Adalats can only handle cases where the amount is less than 5,00,000 rupees.
- 2Lok Adalats have no jurisdiction over cases that are already classified as NPA.
- 3Lok Adalats can take up pre-litigation cases where the amount involved is up to 20,00,000 rupees for settlement.✓
- 4Lok Adalats can only provide advisory opinions and their awards are not legally binding.
Correct answer
Lok Adalats can take up pre-litigation cases where the amount involved is up to 20,00,000 rupees for settlement.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Law?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Banking Laws and Lok Adalat MCQs →Want more practice questions on Banking Laws and Lok Adalat?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Law · Banking Laws and Lok Adalat