Hi satish,
AP is one of the only states to make 498a compoundable! That basically means that the party filing the case will be allowed to take the case back. I am not sure what the process is, but if the lawyers are stating that it will be done in Lok Adalat, then it must be accurate.
However, you have to remember, make sure the aggrement is re-read by atleast another external lawyer to ensure that it is water tight beuse you don't want them to use any loop holes to mess with you again. Having said that, even with the aggreement in place, will not stop the girl from fliing cases in the future. The agreement might help you when the case comes to court but, from what I have heard, it cannot prevent filing of cases. Pre-nup or post nup aggrements are not recoganised by Indian law.
Also, I truly hope that you are not paying money to get rid of this problem. If you are, you are only doing a great injustice to other men and their families as other girls might feel that it is a easy way to money. Which will only lead to more scruplous women to file more false cases. Best of luck.