Currently the default setting value is not created regarding its setting in init.rb file. Tried various ways to store but both are not working and there is no default value:

settings :default => { :weeklabel_name => 'Weekly Label' }, :partial => 'settings/settings'
settings :default => { 'weeklabel_name' => 'Weekly Label' }, :partial => 'settings/settings'

After editing the default value in settings dialog it is properly retrieved and saved further on. Only first time reading is not working. Checking through database reveals that Settings table does not contain the newly defined default value.