Section 138, Negotiable Instruments Act – Andhra Pradesh High Court Holds That Lok Adalat Award in Criminal Proceedings for Cheque Dishonour is Executable as a Civil Court Decree.

The Andhra Pradesh High Court has held that an award rendered by a Lok Adalat in a criminal proceeding pertaining to the dishonour of a cheque under Section 138 of the Negotiable Instruments Act is amenable to execution before a civil court, by virtue of its deemed status as a civil court decree under Section 21 of the Legal Services Authorities Act, 1987.

Initially a private complaint was filed by the respondent against the petitioner for non-payment of dues. The matter was referred to Lok Adalat and an Award was passed directing petitioner herein to pay Rs. 5 Lakh as settlement amount.

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