GITA MITTAL, J.

1. The instant appeal has been filed by the appellants assailing the order dated 19th March, 2018 passed by the learned Single Judge accepting OWP No.1965/2014 filed by the Punjab And Sind Bank, respondent No.1 herein.

2. By way of the writ petition, the Punjab & Sind Bank, Udhampur challenged an order dated 06th December, 2014 passed by the Lok Adalat, Udhampur permitting a settlement proposed before it.

3. The facts giving rise to the present appeal fall within a narrow compass and to the extent necessary, we note the factual background hereafter.

Factual background

4. M/S Singh Hospitality & Resorts Ltd (the appellant No.1 before us) had sought and been authorized financial facilities by the Punjab and Sind Bank (respondent No.1 herein). Daljit Singh-appellant No.2 and Sarbjeet Singh- the appellant No.3 are the Directors of the appellant No.1.The facilities which were sanctioned in 2011 to the respondent No.1 herein included an ODP limit of Rupees Twenty lakhs; and three term loans. To secure these facilities, the appellant mortgaged several properties in favour of the Punjab & Sind Bank-the respondent No.1 (the “Bank” hereafter).

5. Default in abiding with the financial discipline lead to the filing of a civil suit by the Bank against the appellants before the District Judge, Udhampur for the recovery. In the plaint filed by the respondent No.1, reference was made to several demands, requests as well as the notice dated 16th January, 2014 issued under the SARFEASI Act, 2002 served upon the appellants herein which were not complied with necessitating the filing of the suit on 03rd June, 2014. The suit was filed for recovery of the following amounts:

Principal Amount	Rs.6,83,72,664/-
Interest	Rs. 96, 44,217/-
Total	Rs.7,80,16,881/-.

The respondent No.1-Bank also sought pendentelite and future interest at the rate of 15.25 per cent per annum with monthly rests on the above amount from 01st May, 2014.

6. The suit was listed before the court on 28th November, 2014 when the following order came to be recorded:

“Counsel for the parties present. During hearing of the case and submissions of the parties in order to settle the case in National Lok Adalat, following reference point is made with regard to which parties may deliberate and also inform their respective higher competent authority or head office and put up their respective stand before this court by or before 06.12.2014 date of scheduled National Lok Adalat.

In case the principal amount is agreed to be paid in lumpsum what shall be the rate of interest which the parties will agree to pay.

It is mentioned that while putting forth the stand by respective parties nothing shall be taken into account for disposal of the said case on merits nor any stand or submission during negotiations shall prejudice either of the parties for final determination of the suit. Put up the case on 06.12.2014.” (Emphasis by us)

7. On the 06th December, 2014, instead of the case being listed before the court, the suit was also placed in the National Lok Adalat. The proceedings of the Lok Adalat as placed before us record the presence of the counsel for the plaintiff Mr. Sohan Lal, Advocate; Daljit Singh; defendant and the defendant’s counsel- Mr. Ajay Bendral, Advocate before it.

8. It appears that the Presiding Officer of the trial Court was appointed as one of the two members of the National Lok Adalat along with Shri Ch. M Shafi, Advocate. The proceedings of the Lok Adalat and the Award which came to be passed on 06th December, 2014 are self-speaking and also deserve to be extracted in extenso. The same reads as follows:

“Award

The suit has been taken in National Lok Adalat in presence of the Counsel for the plaintiff Mr. Sohan Lal Advocate and defendant Daljit Singh and defendant’s counsel Mr. Ajay Bendral Advocate.

The parties and their