TSLSA: Over 3,100 Cheque Dishonour, Pre-Litigation Cases Settled In First Special Lok Adalat

According TSLSA, cheque dishonour cases, being financial disputes that are compoundable in nature, are well-suited for resolution through Alternative Dispute Resolution mechanisms such as Lok Adalats and mediation. The Special Lok Adalat was conducted across Telangana, including at the High Court for the State of Telangana, under the guidance of the Chief Justice and Patron-in-Chief of TSLSA and the Executive Chairman of the Authority.

For the conduct of the Special Lok Adalat, 255 Lok Adalat Benches were constituted across the State, including one Bench at the High Court. Through these Benches, 2,828 cheque dishonour cases and 318 pre-litigation cases were settled amicably, with Lok Adalat awards being passed in terms of the compromises arrived at between the parties. The total settlement amount awarded in these 3,146 cases was ₹41,29,59,145.

The TSLSA further stated that 23 cases were settled before the High Court Lok Adalat, comprising 18 Motor Accident Civil Miscellaneous Appeals, three cheque dishonour cases and two other matters. Compensation of ₹2.56 crore was awarded in the motor accident cases, while the three cheque dishonour cases were settled for ₹40.30 lakh.

The Authority also informed that, on the request of the Union Bank of India, a Special Lok Adalat was organised exclusively for the bank's pending recovery matters. As a result, 792 pending original suits and 1,396 pre-litigation cases were settled amicably, involving settlements amounting to ₹9.61 crore.

According to the TSLSA, the process of identifying and referring eligible cheque dishonour cases for settlement will continue until the Second Special Lok Adalat, scheduled to be held on 21 November 2026, to facilitate further amicable resolution of such disputes.