JUDGMENT :

JAGMOHAN BANSAL, J. 

1. The petitioner through instant petition under Articles 226/227 of the Constitution of India is seeking setting aside of award dated 05.05.2025 whereby Permanent Lok Adalat, Patiala has awarded compensation of Rs.5,60,000/- along with interest.

2. The private respondents on account of death of Mr. Rampal Soni S/o Sh. Hari Chand preferred an application before Permanent Lok Adalat seeking compensation of Rs.8,00,000/- along with costs and interest. They had filed claim petition on the ground that Mr. Rampal has died in an accident, thus, as per insurance policy issued by petitioner-Cholamandalam MS General Insurance Company Limited they are entitled to claimed amount. The insured sum was Rs.5,60,000/- whereas claimed amount was Rs.8,00,000/-. The insurer repudiated claim of dependents of insured on the ground that insured had died due to illness and not accident. Learned Permanent Lok Adalat considered documentary evidence and framed following terms of settlement vide order dated 10.03.2025:-

“i) Whether the respondents No.1 to 5 may be directed to settle and pay the claim amount of Rs.8,00,000/- along with interest as alleged?

ii) Whether the applicant is entitled to get Rs.25,000/- as compensation on account of harassment as claimed?

iii) Whether the applicant is entitled to get Rs.20,000/- towards costs of litigation charges as claimed?”

3. The terms of possible settlement were supplied to contesting parties, however, they could not reach at amicable settlement. Learned Permanent Lok Adalat proceeded to decide claim on merits. Learned Permanent Lok Adalat concluded that Mr. Rampal Soni who on 15.09.2021 left the mortal world, slipped at home and suffered injuries. He was first taken to Mahavir Hospital, Hanumangarh. Doctor of said hospital in certificate (Exh. A-10) confirmed history of fall in the morning. He further confirmed that deceased was brought to said hospital by his son. The insured was not under the influence of liquor or any other drug at the time he was brought to the hospital. Ayush Detective Agency, an investor appointed by insurer in its report dated 28.01.2022 opined that on 06.05.2021 insured fell at home and sustained injuries because of which he remained admitted in different hospitals. He died on 15.09.2021 during the treatment of cervical injury and COVID-19. Learned Permanent Lok Adalat noticed that claim cannot be repudiated on the ground that no FIR/DDR relating to the incident was lodged. It is common knowledge that people do not report such occurrences to the police and do not get postmortem conducted unless and until they suspect some foul play.

4. Learned counsel for the petitioner submits that insured namely Mr. Rampal Soni did not die on account of accident whereas he died on account of illness. He was subjected to procedure on 13.05.2021. Post operation, he suffered cardio respiratory arrest on 16.05.2021. He was intubated and ventilatory support was given. These facts collectively indicate that he died in an accident. As per policy, accident means sudden, unforeseen and involuntary event caused by external, visible and violent means. Case of respondent did not fall within the definition of ‘accident’.

5. Section 22C of Legal Services Authority Act, 1987 (for short “1987 Act”) provides that every award of the Permanent Lok Adalat either made on merit or in terms of settlement shall be final and binding on all the parties. It shall be deemed to be a decree of a Civil Court. Section 22C reads as:-

“22C Cognizance of cases by Permanent Lok Adalat.— (1) Any party to a dispute may, before the dispute is brought before any court, make an application to the Permanent Lok Adalat for the settlement of dispute:

Provided that the Permanent Lok Adalat shall not have jurisdiction in respect of any matter relating to an offence not compoundable under any law:

Provided further that the Permanent Lok Adalat shall also not have jurisdiction in the matter where the value of the property i