Is an Appeal Against an Acquittal Under Section 138 NI Act Maintainable via the Proviso to Section 372 CrPC?

High Court Upholds Supreme Court’s Celestium Financial Ruling, Grants 45-Day Liberty to File Appeal; Binding on Subordinate Courts in NI Act Cases

 

Category Data
Case Name ACQA/303/2019 of Brijmohan Agrawal Vs Avinash Kumar Sahu
CNR CGHC010131892019
Date of Registration 11-04-2019
Decision Date 02-09-2025
Disposal Nature DISPOSED OFF
Judgment Author Hon’ble Shri Justice Deepak Kumar Tiwari
Court High Court of Chhattisgarh at Bilaspur
Bench Single Judge
Precedent Value Binding on subordinate courts
Overrules / Affirms Affirms Celestium Financial vs. A. Gnanasekaran Etc., 2025 INSC 804
Type of Law Criminal Procedure / Negotiable Instruments Act
Questions of Law Whether a complainant can appeal an acquittal under Section 138 NI Act by invoking the proviso to Section 372 CrPC?
Ratio Decidendi Following the Supreme Court’s holding in Celestium Financial (2025 INSC 804), a victim has the right to prefer an appeal against any order of acquittal; the High Court may grant leave to file such appeal within a specified period and waive limitation objections.
Judgments Relied Upon Celestium Financial vs. A. Gnanasekaran Etc., 2025 INSC 804
Logic / Jurisprudence / Authorities Relied Upon by the Court Application of the Apex Court’s interpretation of the proviso to Section 372 CrPC allowing appeals against acquittals.
Facts as Summarised by the Court Appeal against acquittal under Section 138 NI Act; appellant seeks remedy post-acquittal; reliance on Celestium Financial decision.
Citations 2025:CGHC:44677; 2025 INSC 804

Practical Impact

Category Impact
Binding On All subordinate courts of the High Court of Chhattisgarh
Persuasive For Other High Courts and trial courts in NI Act proceedings
Follows Celestium Financial vs. A. Gnanasekaran Etc., 2025 INSC 804

What’s New / What Lawyers Should Note

  • Confirms a complainant’s right to appeal an acquittal under Section 138 NI Act via the proviso to Section 372 CrPC.
  • Grants 45 days’ liberty to file such an appeal before the appropriate court.
  • Clarifies that limitation will not be insisted upon if appeal is filed within the granted period.
  • Demonstrates High Court’s adherence to and implementation of the Supreme Court’s Celestium Financial ruling.

Summary of Legal Reasoning

  1. The appellant challenged an acquittal order under Section 138 of the Negotiable Instruments Act.
  2. Learned counsel invoked the Supreme Court’s decision in Celestium Financial vs. A. Gnanasekaran Etc. (2025 INSC 804) on the proviso to Section 372 CrPC.
  3. The High Court applied that precedent, confirming a victim’s right to appeal against acquittal orders.
  4. Liberty was granted to the appellant to file an appeal within 45 days, with any limitation objections waived.
  5. Appeal disposed accordingly; certified copies returned and records remitted.

Arguments by the Parties

Petitioner (Appellant):

  • Relied on the Supreme Court’s Celestium Financial judgment to assert a right to appeal the acquittal.
  • Requested liberty to file the appeal despite any limitation period issues.

Respondent (Accused):

No submissions recorded in the judgment.

Factual Background

The appellant, complainant in a Section 138 NI Act proceeding (Complaint Case No. 615/2009), challenged the acquittal granted to the respondent by the JMFC, Raigarh, on 08.10.2018. Relying on the Supreme Court’s April 2025 Celestium Financial decision, the appellant sought permission to appeal the order of acquittal. The High Court considered the precedent and disposed of the appeal by granting 45 days’ liberty to file the same.

Statutory Analysis

  • Section 138, Negotiable Instruments Act, 1881: criminal liability for dishonour of cheque—underlying acquittal order.
  • Section 372, Criminal Procedure Code, 1973 (Proviso): allows a complainant to appeal against an order of acquittal; interpreted per Celestium Financial to be an unqualified right.

Procedural Innovations

  • High Court’s grant of time-bound liberty to file an appeal under the proviso to Section 372 CrPC.
  • Waiver of limitation objections if appeal is instituted within the stipulated 45-day period.

Alert Indicators

  • ✔ Precedent Followed

Citations

  • High Court of Chhattisgarh: 2025:CGHC:44677
  • Supreme Court of India: Celestium Financial vs. A. Gnanasekaran Etc., 2025 INSC 804

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