Authority: Supreme Court Special Lok Adalat (Special Leave Petition)
Order Date: 23-08-2026
Case Overview
- Petitioner: Agriculture Insurance Company of India Ltd (AICIL); Respondents: Gopal Ram Sahu & Anr, Mohan Lal Bafna & Anr (farmers); Respondent bank: Punjab National Bank (PNB).
- The matter concerned insurance claims of the farmer respondents under agricultural insurance policies issued by AICIL.
- The court, on the petition, directed that PNB shall make the payment to the farmer respondents without prejudice to their rights, thereby exonerating AICIL.
- Any amount that AICIL may have already paid to the farmers shall be reimbursed by PNB to AICIL.
- The payment by PNB must be effected within fifteen (15) days from the date of the order.
- Upon completion of the payment, the liability of AICIL is deemed discharged.
- The settlement is expressly stated not to be a precedent for future cases, and the Registry is instructed to draw up the award accordingly.
Final Outcome
- Punjab National Bank is ordered to pay the farmer respondents directly and to compensate Agriculture Insurance Company of India Ltd for any prior payments, within 15 days, thereby discharging the insurer’s liability; the settlement is non‑precedential.
Topics: Insurance Settlement, Bank Liability