National Insurance Company Limited vs. Suman Devi

Held

The Court held that both parties have voluntarily and amicably settled the matter with their free consent, will, and volition, without any undue influence or misrepresentation. This finding is based on the parties placing on record Ext. PA, a calculation sheet duly signed by the parties and their counsels, which details the agreed settlement terms. The final settlement amount is Rs. 4,15,960/-, to carry interest at 12% per annum from 22.09.2008. The difference amount of Rs. 3,11,970/- is to be refunded to the appellant-Insurance Company along with proportionate interest. Any amount found due to the claimant, in view of the compromise, is also to be refunded. Consequently, the order passed by the learned Commissioner, Employee’s Compensation, Solan, dated 01.04.2013, in ECA No. 2/2 of 2021, stands modified. The matter is finally settled, and nothing further is due between the parties. The ratio decidendi is that disputes can be amicably settled through Lok Adalats, and such settlements, when voluntarily agreed upon and documented, are binding and lead to modification or finalization of prior orders.

Facts

This matter was referred to the National Lok Adalat for determination. The appellant, National Insurance Co. Ltd., and respondents Suman Devi & anr. (claimant and another party) voluntarily and amicably settled the dispute. The settlement was reached with free consent, without undue influence or misrepresentation. A calculation sheet, Ext. PA, detailing the settlement, was placed on record and signed by the parties and their counsels. The agreed final settlement amount is Rs. 4,15,960/-. This amount is to carry interest at 12% per annum from 22.09.2008, as previously awarded. A difference of Rs. 3,11,970/- is to be refunded to the appellant-Insurance Company along with proportionate interest, if any. Any amount found due to the claimant, in view of the compromise, is also to be refunded.

Key Issues

1. Whether the parties have voluntarily and amicably settled the dispute with their free consent, will, and volition, without any undue influence or misrepresentation? Petitioner/Appellant's Argument: The appellant, represented by its Deputy Manager and Legal Assistant, along with its advocate, contended that a settlement has been reached voluntarily and amicably. They presented Ext. PA, a signed calculation sheet, as evidence of this agreement. Revenue/State's Argument: The respondents, represented by their respective counsels, also agreed to the settlement terms presented in Ext. PA, indicating their consent and acceptance of the amicable resolution. The judgment records no specific argument from the revenue/state beyond their acceptance of the settlement.