Surat: Surat’s textile industry has set up an informal Lok Adalat in line with the village panchayat system for resolution of business disputes between traders in the country’s largest man-made fabric (MMF) wholesale market.
With the cases of defaults, cheating and outstanding payments rising post the coronavirus pandemic, the Surat Mercantile Association (SMA) launched an informal system to resolve their disputes faster.
This Lok Adalat consists of a panel of 10 members from the trader community and legal experts known as ‘panchas’ to help the traders resolve the disputes. First such Lok Adalat was organized at Vesu where 34 cases, out of the total 87 were resolved on December 6.
Industry sources said that the textile markets witness defaults and payment related issued to the tune of Rs 500 crore every year. This time around, there has been a two-fold rise in default cases with the majority of the parties in other trading centres across the country. Most of them are unable to repay the outstanding due to the losses during the pandemic.
Narendra Saboo, president of SMA, who heads the informal Lok Adalat told TOI, “We have adopted the panchayat system to resolve the disputes of the traders’ community. Traders having dispute with their parties have to register their complaints with us and it will be taken up for discussion at the Lok Adalat.”
Asked why the traders are not seeking legal assistance from the police or the court, Saboo said, “Majority of the traders don’t want to indulge themselves in legal matters and prefer amicable solution. They (traders) don’t want to visit the police station, fearing that they would be called frequently for questioning. At the Lok Adalat, we work with the legal expert to redress the dispute.”