Lok Adalats Planned to Address High-Value Debt Recovery Cases

Lok Adalats Planned to Address High-Value Debt Recovery Cases.webp

New Delhi, March 16 Finance Minister Nirmala Sitharaman said on Monday that four Special Lok Adalats have been planned for the year 2026 to dispose of pending cases before the District Court Tribunals (DRTs) and the Debt Recovery Appellate Tribunal (DRAT).

Responding to a question in the Lok Sabha, she said that among the pending cases before the DRTs and DRATs, most are high-value cases, primarily those involving amounts of Rs 100 crore and above.

"If we look at the total amount involved in the pending cases before the DRTs, nearly 71 per cent of the suit amount relates to these high-value cases," she said, adding that the government has adopted a two-pronged strategy to address the pendency.

First, specific DRTs have been designated to hear only high-value cases, that is, cases involving Rs 100 crore and above.

Second, banks and financial institutions are being encouraged to dispose of cases through Alternate Dispute Resolution (ADR) mechanisms, such as Lok Adalats and similar platforms.

As part of the steps taken to expedite the disposal of cases, the government, in consultation with NALSA (National Legal Services Authority of India), has been organising Special Lok Adalats specifically for DRT-related cases, she said.

"In addition to the National Lok Adalat, we have also been conducting Special Lok Adalats. In fact, two Special Lok Adalats were held in 2025 and these have proven to be very helpful. Four Special Lok Adalats are planned for the year 2026," Sitharaman said.

The minister said through these measures, the government is making sure that case disposal happens faster.

"We are also continuously reviewing the situation to determine how best we can intervene meaningfully. Overall, steps are being taken to ensure that the pendency of cases is reduced," Sitharaman said.
 
Tags Tags
2026 lok adalats alternate dispute resolution case disposal case pendency debt recovery appellate tribunal district court tribunals drt cases financial cases government initiatives high-value cases india legal proceedings lok adalat national legal services authority nirmala sitharaman
Back
Top