Settlement agreements in compensation cases can be recognized and enforced by courts when both parties consent.

JUDGMENT

The appellant is the claimant in O.P.(MV) No.884 of

2019 on the file of the Motor Accidents Claims Tribunal, Ernakulam. The said claim petition was filed by the appellant claiming an amount of ₹10,00,000/- as compensation for the injuries sustained in a motor accident on 15.01.2019. The tribunal awarded an amount of ₹4,06,185/- rounded to ₹4,07,000/- as compensation under different heads, directing the respondent insurer to deposit the said amount along with interest @ 8% per annum from the date of filing the claim petition till realization. Being dissatisfied with the compensation awarded, the claimant has come up in appeal.

2. Today, when the matter came up for consideration, the learned Counsel for the appellant as well as the learned Standing Counsel for the respondent insurer submitted that they have filed a joint statement dated 30.01.2026, wherein it is stated that the claim of the appellant has been settled by the respondent insurer, agreeing to deposit a further amount of ₹18,50,000/- inclusive of all interest and cost to the appellant by way of full and final settlement of all the claims of the appellant against the 3^rd respondent, within a period of 60 days from the date of receipt of a copy of this judgment, failing which, the said amount will carry interest at the rate of 8% per annum from the date of default.

3. In the light of the joint statement filed by the parties, the impugned award is modified by directing the respondent insurer to deposit an additional amount of ₹18,50,000/-(Rupees Eighteen lakhs and fifty thousand only) inclusive of all interest and cost to the appellant by way of full and final settlement of all the claims of the appellant against the respondent, within a period of 60 days from the date of receipt of a copy of this judgment, failing which, the said amount will carry interest at the rate of 8% per annum from the date of default. The claimant shall furnish copies of the PAN Card, AADHAAR Card and bank details before the respondent insurer within a period of 15 days from the date of receipt of a certified copy of this judgment so as to enable the insurance company to make the deposit as ordered above. In case of failure to furnish details as above, it shall be open for the insurance company to deposit the said amount before the tribunal.

The appeal is disposed of, in terms of the joint statement as above. The joint statement will form part of the judgment.

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