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2022 DIGILAW 1419 (SC)

Babu Khan v. National Insurance Company Limited

2022-09-07

HEMANT GUPTA, SUDHANSHU DHULIA

body2022
ORDER 1. Delay condoned. 2. Leave granted. 3. The challenge in the present appeal is to an order passed by the High Court of Madhya Pradesh Bench at Indore on 13.07.2017 whereby the Award rendered by the Lok Adalat was modified at the instance of Insurance Company that the amount settled was Rs.3,85,000/- instead of Rs.5,14,000/- awarded by the Motor Accident Claims Tribunal, Indore. 4. We find that the order passed by the High Court in a review is unsustainable. Firstly, it is not understood how the claimants would agree for reduction of the amount of compensation awarded by the Motor Accident Claims Tribunal from Rs.5,14,000/- to Rs.3,85,000/-. In fact, the agreement was awarding of Rs.3,85,000/-in addition to the awarded amount of Rs.5,14,000/-. 5. We find that the approach of the High Court in modifying the Award of the Lok Adalat which is an Award passed on the consent terms was unjustified. Consequently, the order dated 13.07.2017 passed by the High Court is set aside and that of the Lok Adalat dated 08.04.2017 is restored. 6. The Insurance Company will pay the amount awarded i.e. Rs. 5,14,000/- and the amount enhanced of Rs. 3,85,000/- alongwith interest @ 9% p.a. from the date of the Award of the Lok Adalat i.e. 08.04.2017. 7. With the above observations, the appeal is allowed.