Sri. a. Prakash Vs Bajaj Allianz General Insurance Co. Ltd. — Cheque Dishonour | Karnataka HC (2025)

Sri. a. Prakash Vs Bajaj Allianz General Insurance Co. Ltd. — Cheque Dishonour | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Appeal allowed in terms of the memorandum of settlement; judgment and decree dated 14.07.2016 in O.S. no.9083/2013 modified; appellants to pay Rs.1,25,000/- in full and final settlement (paid by cheques bearing Nos. 504653 and 647800, receipt admitted by respondent); refund of admissible court fee and of the deposit made vide order dated 19.08.2016 to the appellants; Registry to draw decree incorporating the terms of settlement.

Issue for consideration

Whether the appeal should be disposed of in terms of the settlement arrived at between the parties in mediation. +1 more

Court's answer

The appeal is allowed to the extent of and in terms of the settlement, modifying the judgment and decree dated 14.07.2016 passed by the XXX Addl. City Civil Judge, Bengaluru, in O.S. no.9083/2013.

Ratio / Principle

The terms of settlement were perused and found to be lawful; the memorandum of settlement was taken on record and accepted.

Key takeaways

In view of the disposal, the appellants are entitled to refund of admissible court fee and also of the amount deposited before the Court vide order dated 19.08.2016.ratio¶¶56

Detailed headnote1 paragraphs

Consent disposal of a Regular First Appeal. The High Court of Karnataka (Ravi V Hosmani, J.) allowed RFA No. 1293 of 2016 (MON), filed under Section 96 r/w Order 41 Rule 1 CPC against the judgment and decree dated 14.07.2016 of the XXX Addl. City Civil Judge, Bengaluru in O.S. No.9083/2013 (recovery suit by Bajaj Allianz General Insurance Co. Ltd.; decree for Rs.80,000/- with interest @ 18% p.a. from 25.10.2011), in terms of a memorandum of settlement under Section 89 CPC read with Rules 24 and 25 of the Karnataka Civil Procedure (Mediation) Rules, 2005, arrived at in mediation to which the matter was referred by order dated 31.07.2025. Finding the terms lawful, the Court took the memorandum on record and accepted it. The appellants paid Rs.1,25,000/- in full and final settlement by two cheques (Nos. 504653 and 647800) drawn on Karnataka Co-operative Apex Bank Ltd., Bengaluru, receipt whereof the respondent admitted; on dishonour of any cheque, the respondent's liberty to proceed under Section 138 of the N.I. Act stands reserved. The decree was modified accordingly; the appellants were held entitled to refund of admissible court fee and of the amount deposited vide order dated 19.08.2016; and the Registry was directed to draw the decree incorporating the terms of settlement.

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 14^TH DAY OF OCTOBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE RAVI V HOSMANI

REGULAR FIRST APPEAL NO. 1293 OF 2016 (MON)

BETWEEN:

SRI A. PRAKASH S/O LATE ANNAYYA REDDY,

SMT. SHAILA PRAKASH W/O A PRAKASH,

BOTH ARE MAJORS, R/AT NO.38/16, 12^TH CROSS, 4^TH MAIN ROAD, OPP. SBI, WILSON GARDEN, BANGALORE - 560 030.

…APPELLANTS

(BY SRI VINOD PRASAD, ADVOCATE)

AND:

Digitally signed by BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD., GEETHAKUMARI REG. OFFICE AT G.E. PLAZA, PARLATTAYA S AIRPORT ROAD, YERAWADA, Location: High Court of PUNE - 411 006, Karnataka REP. BY HEAD CORPORATE LEGAL, SRI KORANGATI SREENIVASA RAO, (BY PLEADER SRI, SEETHARAMA RAO B.C. ADV)

…RESPONDENT

(BY SRI D. GOVARDHAN, ADVOCATE)

THIS RFA IS FILED UNDER SECTION 96 R/W ORDER 41, RULE 1 OF CPC., AGAINST JUDGMENT AND DECREE DATED 14.07.2016 PASSED IN O.S NO.9083/2013 ON THE FILE OF THE XXX ADDL. CITY

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CIVIL JUDGE, BENGALURU CITY, DECREEING THE SUIT FOR RECOVERY OF MONEY.

THIS APPEAL IS COMING ON FOR FINAL HEARING , THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE RAVI V HOSMANI

ORAL JUDGMENT

Challenging judgment and decree dated 14.07.2016 passed by XXX Addl. City Civil Judge, Bengaluru, in O.S. no.9083/2013, this appeal is filed by defendants.

It was submitted, during pendency of appeal, by order dated 31.07.2025, matter was referred for mediation. Parties have participated in mediation, which has resulted in settlement and terms of which are drawn in agreement placed before Court and prayed that appeal may be disposed of in terms of settlement.

Terms of settlement reads as under:

" MEMORANDUM OF SETTLEMENT UNDER SECTION 89 OF CPC READ WITH RULES 24 AND 25 OF THE KARNATAKA CIVIL PROCEDURE (MEDIATION) RULES, 2005

I. The Respondent had filed the suit in O.S.No.9083/2013 on the file of the XXX Addl. City Civil & Sessions Judge, Bengaluru against

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appellant seeking recovery of a sum of Rs.96,144 (Rupees Ninety Six Thousand One Hundred and Forty Four Only) together with interest @ 18% per annum from 05.08.2009 till payment and cost. The Hon'ble Trial Court was pleased to passed judgment and decree on 14.07.2016 in favour of the respondent herein for a sum of Rs.80,000/- (Rupees Eighty Thousand Only) along with interest @ 18% per annum from 25.10.2011 till payment.

II. The appellants herein filed the above appeal challenging the order passed in O.S.No.9083/2013 on the file of the XXX Addl. City Civil & Sessions Judge, Bengaluru dated 14.07.2016.

III. The aforesaid appeal was referred to mediation for resolving the dispute between the parties. During the course of mediation, the Appellants and the Respondent along with their respective advocates were present and resolve their disputes and they have agreed and arrived the following terms and conditions

1. The Appellants have agreed to pay a sum of Rs.1,25,000/- (Rupees One Lakh Twenty Five Thousand Only) to the respondent towards full and final settlement of all the claims of the respondent. The said amount shall be paid by the appellants by way of the following cheques:

a) Cheque bearing No.504653 dated 01.09.2025 for a sum of Rs.50,000/(Rupees Fifty Thousand Only) drawn on Karnataka Co-operative Apex Bank Ltd., Bengaluru.

b) Cheque bearing No.647800 dated 12.09.2025 for a sum of Rs.75,000/(Rupees Seventy Five Thousand Only) drawn on Karnataka Co-operative Apex Bank Ltd., Bengaluru.

2. The parties have agreed that the aforesaid cheques are subject to realization and the in the

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case of dishonour of the any of the above cheques the respondent company is at liberty to proceed under section 138 of N.I.Act in accordance with law.

3. The parties have agreed that the appellants are at liberty withdraw the deposit sum of Rs.40,000/- (Rupees Forty Thousand Only) and seek refund of the court fee.

4. The parties agree that apart from the above they do not have any other claim against each other.

5. The parties further state that there has been no collusion or force, fraud or any undue influence by any of the parties to enter into this compromise in the aforesaid manner.

IV. In view of the aforesaid agreement, both the parties pray that this Hon'ble court may be pleased to pass appropriate orders in terms of the aforesaid agreement.

V. Parties will appear before the Hon'ble Court for passing necessary orders in terms of the agreement."

In terms of compromise, appellants have agreed to pay a sum of Rs.1,25,000/- to respondent in full and final settlement of all claims and that said amount is paid by way of two cheques bearing no.504653 dated 01.09.2025 for Rs.50,000/- and 647800 dated 12.09.2025 for Rs.75,000/drawn on Karnataka Co-operative Apex Bank Ltd., Bengaluru. Respondent admits receipt of said amount.

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Memorandum of settlement is duly signed by both

parties. whose signatures are identified by their respective counsel and settlement is reported by them.

I have perused terms of settlement and same are found to be lawful. Memorandum of settlement is taken on record and accepted.

Appeal is allowed to extent and in terms of settlement, modifying judgment and decree dated 14.07.2016 passed by XXX Addl. City Civil Judge, Bengaluru, in O.S. no.9083/2013.

In view of disposal, appellants would be entitled for refund of admissible court fee and also amount deposited before this Court vide order dated 19.08.2016.

Registry to draw decree incorporating terms of

settlement.

Sd/(RAVI V HOSMANI) JUDGE

List No.: 1 Sl No.: 48

AV