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Bombay High Court

NEW INDIA ASSURANCE CO LTD THR MANAGER (LEGAL) DIVISIONAL OFFICE DHULEversusPRATIBHA NIKESH PAWARA AND ORS

Disposal
DISPOSED OFF

Holding

The Court accepted the compromise and ordered the award to be drawn, thereby disposing of the appeal.

Summary

The Special Lok Adalat of the Aurangabad Bench of the High Court heard First Appeal No. 1623 of 2024 filed by New India Assurance Co. Ltd. against claimants Pratibha Nikesh Pawara and others. The parties negotiated a compromise whereby the claimants accepted a full and final settlement of Rs. 9,00,000, to be distributed equally among them, with the balance and accrued interest to be refunded to the insurer. The insurer had already deposited the entire amount with the Court, and the compromise was reduced to Exhibit ‘X’ and signed by all parties and their counsel. The Court verified the terms, ordered the award to be drawn accordingly, and directed the refund of court fees as per law. Consequently, the First Appeal was disposed of on the basis of the compromise.

Issues considered

  • Whether the compromise reached between the insurer and the claimants is permissible under Section 19 of the Legal Services Authorities Act, 1987 in a Special Lok Adalat.

Legislation cited

Subjects

  • Lok Adalat
  • compromise
  • insurance claim
  • settlement
  • Legal Services Authorities Act

Judgment

2026:BHC-AUG:15678

                                       1                            FA-1623-24-nbtb.odt


                             BEFORE THE SPECIAL LOK ADALAT
                     AT HIGH COURT OF BOMBAY BENCH AT AURANGABAD
                                HELD ON 29th MARCH, 2026

                 Organized by High Court Legal Services Sub-Committee, Aurangabad
           under section 19, of the Legal Services Authorities Act, 1987 (Central Act)
                                                 …
                                 FIRST APPEAL NO.1623 OF 2024

                          NEW INDIA ASSURANCE CO LTD THROUGH
                        MANAGER (LEGAL) DIVISIONAL OFFICE DHULE
                                             VERSUS
                           PRATIBHA NIKESH PAWARA AND OTHERS
                                               …
                       Advocate for Applicant/Appellant : Ms. Anagha Rotte
                                               ...

                             HON’BLE SHRI JUSTICE SANDIPKUMAR C. MORE,
                             (Head of the Panel)

                             SHRI. S. G. SHETE
                             (Retd. District Judge)

                             SHRI. A. M. PHULE, (Advocate)
                             (Member)
                                             ...
                                             ORDER

           1.    Not on board. Taken on board.

           2.    The learned counsel Ms. Anagha Rotte for the appellant-Insurance

           Company along with representative Mr. Dinesh Bankar, an authorized

           signatory for appellant - New India Assurance Company Limited and

           respondent Nos.1 to 5/claimants along with their learned Advocate Mr. M.S.

           Shah, are present today.

           3.    The parties have arrived at compromise. The terms of compromise

           are placed on record, they are duly signed by the parties and their learned
                                        2                               FA-1623-24-nbtb.odt


          Advocates. It is taken on record and marked as Exhibit ‘X’, for identification.

          As per the said compromise terms, the respondents/claimants have settled

          the matter with the appellant-Insurance Company by accepting total amount

          of compensation of Rs.9,00,000/- (Rs. Nine Lakh) towards full and final

          settlement of their claim.

          4.    The appellant-Insurance Company has already deposited the entire

          amount of compensation along with interest with this Court. However, as

          per the settlement, now the respondents-claimants are permitted to

          withdraw the amount of Rs.9,00,000/- (Rs.Nine Lakh) out of the same and

          it be distributed among them equally. The remaining amount alongwith the

          accrued interest be refunded to the appellant-Insurance Company.

          5.    The compromise terms are duly verified through the parties. As such,

          award be drawn up accordingly.

          6.    The request of refund of court fees shall be processed by the office in

          accordance with law.

          7.    The First Appeal stands disposed of in terms of the compromise

          Exhibit “X”.

          8.    The Civil Application/s, if any, stand/s disposed of.



      (A. M. PHULE)           (S. G. SHETE)          (SANDIPKUMAR C. MORE, J.)
          MEMBER         RETD. DISTRICT JUDGE             HEAD OF THE PANEL

          Date: 29.03.2026
          Place: Aurangabad
ysk/rrd


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