JUDGMENT

N S Sanjay Gowda, J. - The undisputed facts in this writ petition are as follows:

The first petitioner and the respondent had entered into an agreement, whereby, the respondent had undertaken to construct an apartment complex called 'LOTUS PALACE'. It appears that disputes arose between the first petitioner and the respondent and the first petitioner terminated the contract. It appears that the first petitioner had issued a cheque in a sum of Rs.40,00,000/- to the respondent and the said cheque has been dishonoured resulting in initiation of proceedings under Section 138 of the Negotiable Instruments Act (for short hereinafter referred to as "N.I.Act"), before the XLII Additional Chief Metropolitan Magistrate in CC No.7281/2015.

2. During the pendency of the proceedings before the Chief Metropolitan Magistrate, the petitioners and the respondent settled their differences and on 24.08.2015, filed a memo before the Chief Metropolitan Magistrate regarding the settlement and the Chief Metropolitan Magistrate on the basis of the Memo referred the matter to the Lok-Adalath.

3. The Lok-Adalath on 03.09.2015, took up the joint memo for consideration and after hearing the parties, p