Can a Complainant Appeal an Acquittal Under Section 138 NI Act by Invoking the Proviso to Section 372 CrPC?

Yes—the High Court, following the Supreme Court’s decision in Celestium Financial v. A. Gnanasekaran (2025 INSC 804), held that a complainant acquitted the accused under Section 138 of the Negotiable Instruments Act has a right to appeal under the proviso to Section 372 CrPC; the appeals were disposed of with liberty to file within 45 days and limitation to be ignored.

 

Summary

Category Data
Case Name ACQA Nos. 299/2022, 304/2022, 305/2022, 308/2022 & 946/2024 of Vikas Keswani vs Sulabh Israni
CNR CGHC010392472022
Date of Registration 28-11-2022
Decision Date 01-09-2025
Disposal Nature Disposed of
Judgment Author Hon’ble Shri Justice Deepak Kumar Tiwari
Court High Court of Chhattisgarh at Bilaspur
Bench Single-Judge Bench
Precedent Value Persuasive authority
Overrules / Affirms Affirms Supreme Court precedent
Type of Law Criminal appellate procedure; Negotiable Instruments Act
Questions of Law Whether a complainant acquitted of an offence under Section 138 NI Act has a right to appeal under the proviso to Section 372 CrPC.
Ratio Decidendi In light of Celestium Financial v. A. Gnanasekaran (2025 INSC 804), a complainant acquitted under Section 138 NI Act can invoke the proviso to Section 372 CrPC to file an appeal. The High Court must grant leave, allow 45 days’ time and disregard limitation objections in accordance with that apex decision.
Judgments Relied Upon Celestium Financial vs A. Gnanasekaran Etc., 2025 INSC 804
Logic / Jurisprudence / Authorities Relied Upon by the Court Reliance on Supreme Court’s interpretation of proviso to Section 372 CrPC in Celestium Financial.
Facts as Summarised by the Court The appellant was original complainant in five criminal cases under Section 138 NI Act; JMFC, Raipur acquitted the accused in each case on 30.12.2021; appeals filed against acquittals.
Citations 2025 INSC 804; 2025:CGHC:44588

Practical Impact

Category Impact
Binding On All subordinate courts of Chhattisgarh
Persuasive For Other High Courts
Follows Celestium Financial vs A. Gnanasekaran Etc., 2025 INSC 804

What’s New / What Lawyers Should Note

  • Clarifies that a complainant acquitted in a Section 138 NI Act case can appeal under the proviso to Section 372 CrPC.
  • High Court may grant leave and provide 45 days to file such an appeal, ignoring limitation objections.
  • Reinforces that lower courts must follow the Supreme Court’s Celestium Financial ruling when assessing appeal rights post-acquittal.
  • Useful authority for applications under Section 372 CrPC in negotiable instruments disputes.

Summary of Legal Reasoning

  1. The sole issue was whether the proviso to Section 372 CrPC entitles a complainant acquitted under Section 138 NI Act to file an appeal.
  2. The Supreme Court in Celestium Financial (2025 INSC 804) held that the “victim” (complainant) has that right and appeal lies to the same court that hears appeals from convictions.
  3. Applying that precedent, the High Court reserved liberty to the appellant to file appeals within 45 days and directed that limitation would not bar such appeals.
  4. No conflict with existing Chhattisgarh High Court or Supreme Court decisions—merely application of the binding apex ruling.

Arguments by the Parties

Petitioner (Appellant – Vikas Keswani):

  • Relied on Celestium Financial to assert the right to appeal under proviso to Section 372 CrPC.
  • Sought liberty to file appeal despite limitation period having lapsed.

Respondent (Accused – Sulabh Israni):

  • Did not oppose the prayer to reserve liberty for filing the appeal.

Factual Background

The original complainant filed five separate cases under Section 138 of the Negotiable Instruments Act. On 30 December 2021, the Judicial Magistrate First Class, Raipur acquitted the accused in each case. The complainant challenged all acquittals by preferring separate appeals (ACQA Nos. 299/2022, 304/2022, 305/2022, 308/2022 and 946/2024) before the High Court of Chhattisgarh.

Statutory Analysis

  • Section 372 CrPC provides appellate rights for convictions; its proviso extends the right to victims to appeal acquittals.
  • The judgment strictly follows the Supreme Court’s interpretation in Celestium Financial without expanding or narrowing the text beyond that ruling.

Procedural Innovations

  • High Court’s direction to reserve liberty for appeal and to ignore limitation when filing within the specified period.
  • Reinforcement of procedural entitlement under Section 372 CrPC’s proviso in negotiable instruments cases.

Alert Indicators

  • ✔ Precedent Followed
  • 📅 Time-Sensitive

Citations

  • Celestium Financial vs A. Gnanasekaran Etc., 2025 INSC 804
  • High Court of Chhattisgarh: 2025:CGHC:44588, Para 1–12

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