SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Online)(Kar) 11305

THE HIGH COURT OF KARNATAKA
M. Nagaprasanna, J
Shaila – Appellant
Versus
ICICI Lombard Gic Ltd. – Respondent
WRIT PETITION No.102733 OF 2021



Advocates:
For the Appellants/Petitioners: Shriya S.Katagimath
For the Respondents: S.K.Kayakamath, Mahesh Wodeyar

A Lok Adalat award, based on a settlement or joint memo, is only legally valid and binding if signed by the parties themselves to confirm voluntary and informed consent; a settlement signed only by Advocates without the client's express instruction is not binding.

Headnote:(A) Legal Services Authorities Act, 1987 - Section 20 - National Legal Services Authority (Lok Adalats) Regulations, 2009 - Regulation 17(2) - Award passed by Lok Adalat without signatures of parties - Validity - Settlement arrived at between Advocates without instructions from clients - Counsel cannot throw away legal rights of their clients - Regulation mandates signatures of parties on settlement - Award passed in absence of parties and without their signatures is illegal and cannot be binding. (Paras 9, 10.3, 10.4)

Facts of the case:
The petitioners challenge an award passed by the Lok Adalat in an appeal arising from a motor accident claim, wherein the award amount was reduced from the original tribunal award. The petitioners contended they were unaware of the settlement and had not signed the joint memo, which was signed only by the legal representatives.

Findings of Court:
The court observed that the joint memo lacked the signatures of the claimants, rendering the settlement procedurally flawed. Relying on established principles, the court held that an Advocate's compromise without client instruction cannot bind the party and that a Lok Adalat award is only valid under the Regulations if the parties have signed the settlement.

Issues: Whether an award of the Lok Adalat is valid and binding if the parties did not sign the joint memo and were not present during the proceedings.

Ratio Decidendi: An award passed by the Lok Adalat without the signatures of the parties and without ensuring their full understanding and voluntary participation is legally unsustainable and does not constitute a valid settlement under the Lok Adalat Regulations.

Result: Writ Petition allowed, Lok Adalat award quashed, and appeal restored to file for disposal on merits.

Table of Content
1. factual background regarding the challenged lok adalat award in a motor accident case. (Para 1 , 2 , 3)
2. arguments concerning advocate authority and the necessity of party signatures for settlement. (Para 4 , 5)
3. requirement of signed settlements for the validity of lok adalat awards. (Para 6 , 7 , 8 , 9 , 10 , 11)
4. final order quashing the invalid award and restoring the appeal. (Para 12)

Reserved on : 03.12.2025

Pronounced on : 25.03.2026

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, DIRECTIONS OR ORDER QUASHING THE ANNEXURE-A THAT THE ORDER DATED 13.07.2019 PASSED BY THE HON'BLE HIGH COURT LEGAL SERVICES COMMITTEE, AT DHARWAD BENCH BEFORE THE LOKADALATH (LOKADALATH NO.2267/2019) IN MFA NO.100905/2014.

THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED FOR ORDERS ON 03.12.2025, COMING ON FOR PRONOUNCEMENT THIS DAY, THE COURT MADE THE FOLLOWING:-

CORAM: THE HON'BLE MR JUSTICE M.NAGAPRASANNA

CAV ORDER

The petitioners are before this Court calling in question the award dated 13-07-2019 passed by the Lok Adalat in Lok Adalat No.2267 of 2019 in M.F.A.No.100905 of 2014 (MV).

2. Heard Smt. Shriya S.Katagimath, learned counsel appearing for the petitioners, Sri S.K.Kayakamath, learned counsel appearing for respondent No.1 and Sri Mahesh Wodeyar, learned counsel appearing for respondent No.2.

3. Facts, in brief, germane are as follows: -

The petitioners 1 and 2, mother and son respectively were going as pillion riders in the motorcycle of the deceased, who is the husband and father of petitioner Nos.1 and 2, respectively to ESI Hospital for treatment of the 2nd petitioner for ailment. On the way, in a road traffic accident involving a car and the motorcycle, the husband of the 1st petitioner dies. A claim petition comes to be filed after the death seeking compensation from the hands of the Insurance Company. The Tribunal, in terms of its order dated 13-11-2013 in M.V.C. No.647 of 2012 awards a compensation of ₹9,18,600/- with interest at 6% per annum from the date of petition till the date of the amount is made good to the hands of the claimants. The Insurance Company challenges the said award before this Court in M.F.A. No.100905 of 2014. During the subsistence of the appeal, the matter was referred to the Lok Adalat and on the settlement arrived at between the parties before the Lok Adalat, the award amount was reduced to ₹7,82,000/- as full and final settlement, which is in reduction of the compensation awarded by the Tribunal. The petitioners challenge the said award of the Lok Adalat in the subject petition on the score that the petitioners were not even aware that their learned counsel had agreed for a settlement to reduce the award amount before the Lok Adalat and that they had not signed the joint memo filed thereto.

4. The learned counsel appearing for the petitioners submits that the reduction of the award amount is erroneous. The settlement is arrived at between the earlier counsel for the petitioners and the Insurance Company, which was never within the knowledge of the petitioners. The deceased was the sole earning member of the family and there was no other source of income. Therefore, it is not possible for the petitioners to agree to a reduced award amount. The deceased, at the relevant point in time, was earning ₹6,000/- per month and ₹125/- per day as bhatta. As per the chart of calculation of award notified by the Karnataka Legal Services Authority itself it should have been at ₹7,000/- per month, since the accident had occurred in the year 2012. Therefore, the compensation would go beyond ₹12,00,000. It cannot be that the petitioners would have accepted the reduced compensation amount of ₹7,82,000/- before the Lok Adalat. The learned counsel submits that the award be set aside and the appeal be restored to file with one more opportunity to contest the matter.

5. Per contra, the learned couns

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top