S.138 NI Act | Lok Adalat Award In A Criminal Case For Cheque Dishonour Can Be Executed By Civil Court: Andhra Pradesh HC

The Andhra Pradesh High Court ruled that a Lok Adalat award is executable in a cheque bounce case under Section 138 of the Negotiable Instruments Act. The court clarified that awards passed by Lok Adalats have the status of a decree and are therefore enforceable through execution proceedings. This ruling reinforces the effectiveness and binding nature of settlements reached through Lok Adalats, providing a quicker and more accessible route for dispute resolution, even in cases involving financial instruments.