- 1 - HC-KAR NC: 2025:KHC:52958 WP No. 35180 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE MOHAMMAD NAWAZ WRIT PETITION NO. 35180 OF 2025 (GM-RES) BETWEEN: 1. M/S. AISHWARYAGIRI CONSTRUCTIONS PRIVATE LIMITED, NO.1/4. UNIT NO.F-2. 2ND FLOOR, 10TH CROSS. 4TH MAIN ROAD, M.C.LAYOUT. BENGALURU 560 040. REPRESENTED BY ITS DIRECTOR SRI. JAYARAMAIAH GIRIYAPPA, SRI. SHIVAKUMAR GIRIYAPPA. 2. SRI. JAYARAMAIAH GIRIYAPPA, SON OF CHIKKANNA GIRIYAPPA, R/AT. NO.236. EWS 2ND STAGE. 2ND MAIN, 5TH CROSS, KHB COLONY. BASAVESHWARANAGAR, BENGALURU 560 079 3. SRI. SHIVAKUMAR GIRIYAPPA, SON OF CHIKKANNA GIRIYAPPA. R/AT. NO.147, 4TH CROSS, NAGARABHAVI CIRCLE, JYOTHINAGAR, CHANDRA LAYOUT, BENGALURU 560 072. …PETITIONERS (BY SRI. UNNIKRISHNAN M.,ADVOCATE) AND: 1. M/S. ANUSHKA STEEL AND CEMENT BY ITS PROPRIETOR SMT. SRIRATHNA, WIFE OF RAJA NARAYANA, AGED ABOUT 49 YEARS, R/AT. NO.38. PIPE LINE ROAD, NEAR GURUKULA COLLEGE, Digitally signed by LAKSHMI T Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:52958 WP No. 35180 of 2025 BYADARAHALLI. BENGALURU 560 091. REPT. BY HER SPA HOLDER, SRI. RAJA NARAYANA @ YATHIRAJU, S/O. LATE NANJUNDAIAH, AGED ABOUT 50 YEARS. R/AT. NO.38, PIPE LINE ROAD, NEAR GURUKULA COLLEGE. BYADARAHALLI, BENGALURU 560 091. …RESPONDENT (BY SRI. SHRIDHARA K.,ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 23.08.2025 IN C.C.NO.9003/2022 PASSED BY THE HON'BLE CHIEF JUDICIAL MAGISTRATE, BANGALORE RURAL DISTRICT, BENGALURU,B) ORDER TO CALL FOR RECORDS IN C.C.NO.9003/2022 PENDING BEFORE THE HON'BLE CHIEF JUDICIAL MAGISTRATE, BANGALORE RURAL DISTRICT, BENGALURU..GRANT AN INTERIM ORDER TO STAY THE OPERATION OF THE ORDER, DATED 23.08.2025 PASSED BY THE HON'BLE CHIEF JUDICIAL MAGISTRATE, BANGALORE RURAL DISTRICT, BENGALURU, IN C.C.NO.9003/2022 I.E, ANNEXURE 'A', TILL THE DISPOSAL OF THE ABOVE WRIT PETITION IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE MOHAMMAD NAWAZ - 3 - HC-KAR NC: 2025:KHC:52958 WP No. 35180 of 2025 ORAL ORDER Petitioners are aggrieved by the Order dated 23.08.2025. passed by the Learned Chief Judicial Magistrate, Bengaluru Rural District, Bengaluru, on an interlocutory application, in C.C.No.9003/2022. 2. Vide impugned order, the Learned Magistrate has allowed the application filed by the Respondent/Complainant under Section 143A of the Negotiable Instruments Act, 1881 (hereinafter referred to as the 'NI Act' for brevity) and directed the petitioners/accused to pay 20% of the cheque amount i.e., `39,47,529 as interim compensation to the Respondent within 60 days from the date of the order. 3. It is not in dispute that the total cheque amount is `1,94,37,647. While allowing the application, the learned Magistrate has observed that the accused are persistently non- cooperative and sought repeated adjournments for cross- examination of PW.1, in spite of issuance of costs etc. 4. It is the contention of the learned counsel for the petitioners that, the cheque has been disputed and there is no legally enforceable debt and therefore, the Learned Magistrate - 4 - HC-KAR NC: 2025:KHC:52958 WP No. 35180 of 2025 could not have ordered for compensation and ought to have dismissed the application filed under Section 143A of the NI Act. 5. Under Section 143 A of the NI Act, the Court, trying an offence under Section 138 of the NI Act, may order the drawer of the cheque to pay interim compensation to the complainant, which shall not exceed 20% of the amount of the cheque. The trial Court can pass the order considering the attending circumstances and the said order will be subject to Section 143A(4) of the NI Act, which stipulates the complainant to repay to the drawer the amount of interim compensation, with interest at the bank rate, as mentioned therein. 6. In the case on hand, the Learned Magistrate has directed the accused to pay 20% of the cheque amount as interim compensation. Section 143 A of the NI Act provides that, the interim compensation shall not exceed 20%. Hence, considering the cheque amount, this Court is of the opinion that the petitioners/accused can be directed to pay 15% of the cheque amount as interim compensation. 7. Accordingly the following : - 5 - HC-KAR NC: 2025:KHC:52958 WP No. 35180 of 2025 ORDER i) The order dated 23.08.2025 passed by the Learned Chief Judicial Magistrate, Bengaluru Rural District, Bengaluru, in C.C.No.9003/2022 is modified; ii) The petitioner/accused is directed to pay 15% of the cheque amount as interim compensation to the complainant within 30 days from today, subject to the complainant giving an undertaking as provided under Section 143 A(4) of the NI Act; iii) Rest of the direction issued by the trial Court shall be intact. iv) The observations made by the Learned Magistrate in its order shall be confined to the disposal of the application filed under Section 143A of the NI Act. Petition is disposed of. Sd/- (MOHAMMAD NAWAZ) JUDGE rs/List No.: 1 Sl No.: 31