NEW DELHI: Disputes related to services offered by banks, Non-Banking Financial Companies (NBFCs), and gas supply firms will now be heard at Lok Adalats. The Lieutenant Governor (L-G) has approved the inclusion of these services under the category of ‘public utility services’, as suggested by the Law Department of the Delhi Government.
According to officials, this alternate judicial mechanism was created to facilitate swift resolution of the rising volume of disputes between consumers and service providers. The proposal pointed out that a large number of disputes related to loans, financial recovery, savings and investments, service deficiencies, and billing issues in banking and non-banking financial sectors could be effectively and expeditiously resolved outside conventional courts, if these were notified as public utility services.
“Such inclusion would empower permanent Lok Adalats to take up these matters, reduce the burden on regular courts and provide accessible, low-cost, and time-bound legal remedies to the public,” said an official.
The three services were closely aligned with the characteristics of public utility services, and given the increasing volume of cases related to them, there was a pressing need to ensure expeditious, cost-effective, and amicable resolution of such matters, the proposal said.
Further, disputes related to these services often involve individuals who are unable to afford prolonged litigation, making permanent Lok Adalats a simplified and affordable alternative.
Three permanent Lok Adalats currently function to resolve electricity-related disputes involving power discoms.
The Delhi State Legal Services Authority (DSLSA) is also in the process of setting up a permanent Lok Adalat to cater to other public utility services that include transport, postal, telecom, water supply, public sanitation, health and insurance services, among others, the official added.
‘Permanent Lok Adalats an affordable option’
Disputes related to these services often involve individuals who are unable to afford prolonged litigation, making permanent Lok Adalats a simplified and affordable alternative. Three permanent Lok Adalats currently function to resolve electricity-related disputes involving power discoms.