THIRUVANANTHAPURAM: The Lok Adalat (people's court) at the Vanchiyoor court complex has settled a dispute relating to a loan amount of over Rs.2 crore, taken by a private construction company based at Nalanchira from the Kerala Financial Corporation (KFC), through conciliation and compromise.

The amount is the highest settled by the Adalat since it was set up eight years ago.

The dispute related to 59.09 acres of property at Pangappara and Vattappara, which the construction company mortgaged for Rs.1.20 crore in February 2001 to execute the construction of the Kozhimuku-Champakulam road.

However, following default of payment of instalments, the KFC issued a letter to the company informing the sale of hypothecated properties. It gave 15 days to the company to remit the dues.

P.P. Poulose, managing partner of the company who filed a petition before the Lok Adalat, alleged that the KFC was trying to sell the properties at an undervalued rate to realise the principal amount and interest, which came to Rs.2.42 crore, and termed the time given for remitting the dues `not practicable.' The petitioner requested the Adalat to waive a portion of the interest and grant a period of one year to repay the loan amount with interest.

The dispute was finally settled by a panel comprising judicial officer Prabathu Kumar, advocate K.Veni and S. Krishnan Achary, social worker, after the KFC agreed to waive the interest amount and hand over the property to the company on condition that the petitioner furnish Rs.1 crore before December 2. The Adalat decreed that the KFC is at liberty to go ahead with the existing sale proceedings in case the petitioner failed to comply with the above condition.

According to the administrative staff of the District Legal Services Authority, who are conducting the Lok Adalat, there has been a steady growth in the number of people seeking redressal from the Lok Adalat over the years. In 2003 the number of cases filed before the adalat was only 630, and the figure doubled to 1,560 in 2005. This year till November 31 about 1,000 cases have been filed.

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