#Lok Adalat settlement

The Madhya Pradesh High Court has ruled that interest under a Lok Adalat settlement is enforceable regardless of whether the delay in payment is bona fide, rejecting the Commissioner’s attempt to excuse non-compliance due to bank account restraint. This sets a critical precedent for claimants: compromise awards are binding contracts, and delays-even those beyond the insurer’s immediate control-trigger automatic interest liability as stipulated in the award.

Karnataka High Court rules that a Lok Adalat settlement does not require consent from all parties if the underlying partition suit has been dismissed, even if an appeal is pending. The court held that enforceable rights must exist at the time of settlement, clarifying the scope of Lok Adalat's authority in property disputes.

MP High Court Gwalior rules that motor insurance coverage is invalid if the policy effective date follows the accident date. The court quashed a Lok Adalat award, emphasizing that liability hinges on the policy being active at the time of the incident, impacting insurers and claimants in motor accident disputes.