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Section 11

Power of Panchayat Or Lok Adalat to Deposit Money Due on Loan in Panchayat Or Lok Adalat.

(1) The Panchayat or Lok Adalat may, at any time, on application of judgement-debtor, after notice to the decree holder, direct that the amount of any decree passed against him, whether before or after the date on which this Act comes into force, in respect of a loan, shall be paid in such number of instalments and subject to such conditions, and payable on such dates, as having regard to the circumstances of the judgement-debtor and the amount of the decree, it considers fit.

(2) (a) Where a money lender refuses to accept the whole or any portion of the money due in respect of his loans, the borrower may deposit the said money into the Panchayat or Lok Adalat, as the case may be, to record full or part satisfaction of the loan.

(b) Where any such application is made, the Panchayat or Lok Adalat, as the case may be, shall, after due inquiry pass orders recording full or part satisfaction of the loan, as the case may be.