Section 10(4) in The Jammu and Kashmir Money Lenders and Accredited Loan Providers Act, 2010
(4)Notwithstanding anything contained in any law for the time being in force, in any suit to which this Act applies, -(a)a Lok Adalat or Panchayat shall, before deciding the claim on merits, frame and decide the issue whether the money lender has complied with the provisions of section 6 ;(b)if the Lok Adalat or Panchayat finds that the provisions of section 6 have not been complied with by the money lender, it may, if the money lender's claim is established in whole or in part, disallow the whole or any portion of the interest found due as may seem reasonable to it in the circumstances of the case and may disallow costs.Explanation : - A money lender who has given the receipt or furnished a statement of accounts or a passbook in the prescribed form and manner, shall be held to have complied with the provisions of section 6, as the case may be, in spite of any errors and omissions if the Lok Adalat or Panchayat finds that such errors and omissions are not material or not fraudulent.
