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Notice received for lok Adalat hearing even after repayment of loan


05-Mar-2023 (In Recovery Law)
I had taken education loan in PSU on 2011. I couldn't repay EMI's on time due to unemployment. I have settled the entire pending amount and took clearance certificate on November 2020. But on 04 March 2022, i have received notice from civil district judge to appear for lok Adalat. Is this right?
Answers (2)

Answer #1
805 votes
If you’ve received clearance certificate, you have nothing outstanding and not due to pay anything.

lol Adalat is a place where existing matters are settled outside court.
Had any case been filed against you?
You should have yourself represented by a lawyer to find out what’s happening in this case and why it’s been called before the Lok adalat.

Answer #2
925 votes
you can appear and appraise them that you have made the payment and give them a copy of clearance certificate

this happens because the bank would have started the legal process before you paid the entire emi and closed the loan

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