The writ petition is filed by an insurance company, (hereinafter referred to as the "insurer") challenging an award passed by the Insurance Ombudsman, Kochi.

2. The facts of case are as follows:

The insured, the second respondent, was running a manufacturing unit for manufacture of mattresses, beds etc. A fire broke out in the unit. The Surveyor deputed by the insurer has assessed the loss at Rs.49.36 lakhs. However, the insurer settled the claim for Rs.27 lakhs. Challenging the action of the insurer, the insured approached the Insurance Ombudsman. The Insurance Ombudsman awarded a further sum of Rs.15 lakhs to be paid by the insurer to the insured. It is challenging this award that the writ petition is filed.

3. The question in this writ petition revolves around legality of the settlement arrived at between the insurer and the insured.

4. Admittedly, the insured settled the claim for a sum of Rs.27,15,948/- as discernible from Ext.P2. This settlement was based on the request made by the petitioner dated 02/05/2012, which is produced as Ext.P1.

5. The case of the insured is that he was constrained to accept the settlement due to extreme financial distress and on account of und