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2026 Supreme(Online)(Del) 747

IN THE HIGH COURT OF DELHI AT NEW DELHI
Vinod Kumar, Presiding Officer, K. Venkatraman, Co-Member
Akashganga Infraventures India Pvt Ltd – Appellant
Versus
Anju Devi – Respondent
FAO 187/2023



Advocates:
For the Appellants/Petitioners: Shwetanu Sharma, Vinod Kumar
For the Respondents: S.N. Parashar, Ritik Singh

A settlement arrived at between parties in a Lok Adalat serves as a full and final resolution of the dispute, allowing for the disposal of the appeal and the refund of deposited compensation amounts to the employer upon fulfillment of payment obligations.

Headnote:The case concerns an appeal against an order passed under the Employee’s Compensation Act, which directed the payment of compensation, interest, and penalties. The court facilitated a settlement between the parties in a Lok Adalat setting to resolve the dispute amicably. The court determined that the parties had reached a full and final settlement, leading to the payment of a lump sum amount by the appellant. The primary issue involved the quantification and payment of compensation for a claim arising under the Employee’s Compensation Act. The ratio decidendi rests on the principle of party autonomy and the efficacy of mediated settlements in Lok Adalat, where parties voluntarily agree to a compromise that disposes of the litigious dispute without further adjudication. The appeal and all pending applications were ordered to be disposed of in terms of the settlement agreement entered between the parties.

Table of Content
1. overview of the appeal and admitted compensation amount. (Para 1 , 2)
2. terms of the settlement agreement reached in lok adalat. (Para 3)

O R D E R

10.01.2026

Appellant has filed an appeal for challenging the order dated 21.06.2023 passed by the Commissioner, Employee’s Compensation Act directing the appellant to pay Rs. 8,06,640/- as compensation along with interest @12% w.e.f. 17.01.2017 till the realization along with 25% penalty of the awarded amount.

On appeal, the appellant deposited total amount of Rs. 16,45,546/- inclusive of interest.

After comprehensive discussion between the parties along with the assistance of Learned Counsel for both the parties, it was agreed in Pre-Sitting Lok Adalat as under:-

1. (a). The appellant shall pay lump sum compensation of Rs.7,50,000/- to the respondent Smt. Anju Devi as full and final compensation of the subject matter of the appeal.

(b). The appellant shall pay the said amount Rs. 7,50,000/- by way of demand draft on 10.01.2026 i.e. the date of National Lok Adalat.

(c). On payment of the settled amount to the respondent, respondent has no objection, if the amount lying deposited before Commissioner Employee’s Compensation Act along with accrued interest is released to the appellant.

2. The appellant has today paid the amount Rs. 7,50,000/- to the R-1 vide Demand Draft No. 009059 dated 09.01.2026 and same has been accepted by legal heirs of the deceased, identified by learned counsel for the respondent and accepted as full and final settlement.

3. In view of the above, the appellant may approach the Commissioner Employee’s Compensation Act for release of the deposited amount along with accrued interest and the Learned Commissioner is directed to release the deposited amount along with accrued interest to the appellant subject to completion of requisite formalities.

In terms of the aforesaid, the present appeal along with pending application (s) stand disposed of.

A copy of this order be sent to the concerned learned Commissioner Employees Compensation Act with LCR, if already received.

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