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How Lok Adalat Settles Loans and Challans

Ankit Gupta · Content Strategist
Published · 2 min read

In short

  • Lok Adalats are settlement forums that act only when both parties agree, and they do not impose any decision on borrowers or lenders.
  • Civil disputes and compoundable criminal cases can be taken up, while non-compoundable criminal offences remain outside the scope of these sittings.
  • The National Legal Services Authority has fixed the 2026 national sittings for the second Saturday of four months, with the last one set for 12 December.
  • Results from recent sittings, including more than 2.07 crore cases resolved in May, are being followed closely by families with old dues and pending challans.
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NALSA reported that the second National Lok Adalat of 2026, held on 9 May 2026, settled more than 2.07 crore cases. Borrowers and vehicle owners follow these sittings because pending loan dues and traffic fines can be closed there.

The fourth National Lok Adalat of 2026 is set for 12 December. Disputes over loan repayments and unpaid challans are among the matters that such forums handle, and families with old dues are checking the dates announced by the legal services authorities.

A Lok Adalat is a settlement forum, and it works only where both the parties come forward for a compromise.

What Lok Adalats can and cannot settle

Lok Adalats were set up under the Legal Services Authorities Act, 1987, and they sit at the state, district and taluk levels. The legal services authorities at each level arrange the sittings in their own areas.

The matters that can be taken up are civil in nature, and these include marriage and family disputes. Compoundable criminal cases are also eligible, which means offences where the law itself permits the parties to reach a compromise.

For an individual with a pending loan dispute or an unpaid challan, there will be a settlement only if both the sides agree to the terms placed before them. The forum does not impose a decision on either party, and a case in which one side refuses will not be closed there.

Non-compoundable criminal offences are outside the scope of a Lok Adalat, and such cases cannot be settled in these sittings.

The 2026 sitting calendar

The National Legal Services Authority (NALSA) coordinates the national sittings, and the legal services authorities in the states arrange them in their own areas. As per a NALSA letter dated 4 December 2025, the National Lok Adalats in 2026 are held on the second Saturday of March, May, September and December.

Borrowers and vehicle owners with pending matters are noting these dates, as the sittings are held on fixed days only.

The sitting on 12 December is the last of the four dates for the year. Non-compoundable criminal offences cannot be taken up at any of these sittings and a case will be settled only if both sides agree.

lok adalatnational lok adalat 2026loan settlementchallan settlementNALSALegal Services Authorities Actcompoundable offenceslok adalat date december 2026

Frequently asked questions

What is a Lok Adalat?

It is a forum set up under the Legal Services Authorities Act, 1987, where parties settle disputes by mutual consent.

Can unpaid traffic challans be settled in a Lok Adalat?

Pending challans are among the matters taken up at these sittings. The settlement happens only when both the sides accept the terms.

Which cases cannot be settled in a Lok Adalat?

Non-compoundable criminal offences cannot be taken up. A case where one party refuses to compromise will also not be closed.

Sources & credits

Facts and figures in this article draw on these sources. All writing is our own.

  • Haryana State Legal Services Authority (haryana.nalsa.gov.in)
  • Andhra Pradesh State Legal Services Authority (andhrapradesh.nalsa.gov.in)
  • Bar and Bench ↗

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About the author

Ankit Gupta

Ankit Gupta

Content Strategist New Delhi, India

Writer focused on markets, personal finance and the economy. I simplify complex topics with clear, research-backed insights and practical takeaways for everyday readers.

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