Supreme Court’s Celestium Doctrine Applied to Section 138 Appeals, Upholding Victim’s Right to Challenge Acquittal
Summary
| Category | Data |
|---|---|
| Case Name | ACQA Nos. 299/2022, 304/2022, 305/2022, 308/2022 & 946/2024 of Vikas Keswani vs Sulabh Israni; CNR CGHC010392492022 |
| Decision Date | 01-09-2025 |
| 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 |
| Overrules / Affirms | Affirms Supreme Court precedent in Celestium Financial vs A. Gnanasekaran Etc. (2025 INSC 804) |
| Type of Law | Criminal Procedure; Negotiable Instruments Act, 1881 (Section 138) |
| Questions of Law | Whether a complainant has the right under the proviso to Section 372 CrPC to appeal an acquittal in a Section 138 NI Act prosecution |
| Ratio Decidendi | In view of the Supreme Court’s decision in Celestium Financial (2025 INSC 804), the complainant under Section 138 of the Negotiable Instruments Act has a statutory right to appeal an acquittal under the proviso to Section 372 CrPC. The High Court may reserve liberty to file such an appeal within a specified period and must not insist on limitation if the appeal is filed within that period. Appeals under the proviso lie to the court which would hear an appeal against conviction in that case. |
| Judgments Relied Upon | Celestium Financial vs A. Gnanasekaran Etc., 2025 INSC 804 |
| Logic / Jurisprudence / Authorities Relied Upon | Supreme Court’s interpretation of the proviso to Section 372 CrPC in Celestium Financial |
| Facts as Summarised by the Court | Appellant challenged five separate acquittals dated 30 December 2021 by a JMFC, Raipur, in Criminal Cases Nos. 1–5/2017 under Section 138 NI Act; each appeal sought leave to challenge those acquittals. |
| Citations | 2025:CGHC:44588; 2025 INSC 804 |
Practical Impact
| Category | Impact |
|---|---|
| Binding On | All courts hearing appeals under Section 372 CrPC in Chhattisgarh |
| Persuasive For | Other High Courts considering Section 138 NI Act acquittal appeals under Section 372 CrPC |
| Follows | Celestium Financial vs A. Gnanasekaran Etc. (2025 INSC 804) |
What’s New / What Lawyers Should Note
- Confirms that a complainant in a Section 138 NI Act case has a statutory right to appeal an acquittal under the proviso to Section 372 CrPC.
- Permits filing of such appeals within 45 days from the High Court’s order, without objection on limitation if filed within that period.
- Appeals lie to the same court that would hear an appeal against conviction.
- High Court may dispose of interlocutory challenge by reserving liberty rather than dismissing it as time-barred.
- Counsel should secure certified copies promptly, as per the registry directions in this judgment.
Summary of Legal Reasoning
- The appeals challenge acquittals under Section 138 of the Negotiable Instruments Act by a JMFC, Raipur.
- Reliance placed on the Supreme Court’s judgment in Celestium Financial (2025 INSC 804), which construed the proviso to Section 372 CrPC as granting victims a right to appeal acquittals.
- Held that the proviso to Section 372 CrPC applies equally to Section 138 NI Act proceedings.
- The High Court may grant leave or reserve liberty to file the appeal within a reasonable period.
- If the appeal is filed within 45 days from this order, the appellate court must not insist on limitation and must decide on merits.
- Directions issued for return of certified copies and transmission of records to the trial court.
Arguments by the Parties
Appellant (Original Complainant)
- Relied on Celestium Financial to assert a right to appeal the JMFC acquittals under the proviso to Section 372 CrPC.
- Sought liberty to file appeal out of time.
Respondent (Original Accused)
- Did not oppose the application for leave to appeal or reservation of liberty.
Factual Background
Vikas Keswani, the original complainant, filed five separate criminal complaints under Section 138 of the Negotiable Instruments Act in 2017 against Sulabh Israni. On 30 December 2021, the Judicial Magistrate First Class, Raipur, acquitted the accused in each case. The complainant thereafter filed applications (ACQA Nos. 299, 304, 305, 308 of 2022 and 946 of 2024) seeking to challenge those acquittals.
Statutory Analysis
- Proviso to Section 372 CrPC: interpreted in Celestium Financial to grant a victim the right to appeal an acquittal.
- Section 138 Negotiable Instruments Act: criminal liability for dishonour of cheque, but does not bar appeal by complainant against acquittal.
- Emphasized harmonization of procedural rights for victims across criminal statutes.
Procedural Innovations
- Recognizes a streamlined route for victims to challenge acquittals: reserve liberty to file appeal rather than dismiss for delay.
- Directs courts not to insist on statutory limitation if the appeal is filed within the period fixed by the High Court.
Alert Indicators
- ✔ Precedent Followed – Affirms the Supreme Court’s Celestium Financial interpretation of Section 372 CrPC.
Citations
- 2025:CGHC:44588 (High Court of Chhattisgarh)
- Celestium Financial vs A. Gnanasekaran Etc., 2025 INSC 804