High Court Upholds Supreme Court in Celestium Financial (2025 INSC 804), Confirming That Complainants under Section 138 NI Act Are “Victims” under CrPC/BNSS and May File Appeals Post-Acquittal; Binding on Subordinate Courts in Chhattisgarh
Summary
| Category | Data |
|---|---|
| Case Name | ACQA No. 515 of 2024 of Somit Kumar Sahu Vs Mangilal Rathi |
| CNR | CGHC010241072024 |
| Decision Date | 02-09-2025 |
| Disposal Nature | Appeals disposed with liberty to file fresh appeals |
| Judgment Author | Hon’ble Shri Justice Sanjay Kumar Jaiswal |
| Court | High Court of Chhattisgarh at Bilaspur |
| Precedent Value | Binding on subordinate courts in Chhattisgarh |
| Overrules / Affirms | Affirms the Supreme Court’s ruling in Celestium Financial vs. A. Gnanasekaran (2025 INSC 804) |
| Type of Law |
|
| Questions of Law | Whether a complainant under Section 138 NI Act qualifies as a “victim” under Section 2(wa) CrPC/Section 2(y) BNSS and is entitled to appeal under the proviso to Section 372 CrPC (Section 413 BNSS)? |
| Ratio Decidendi | The High Court held that in view of the Supreme Court’s decision in Celestium Financial (2025 INSC 804), a complainant under Section 138 of the Negotiable Instruments Act is a “victim” as defined in Section 2(wa) CrPC and Section 2(y) of the BNSS. Such a complainant is entitled to file an appeal under the proviso to Section 372 CrPC corresponding to Section 413 BNSS. The Court granted the appellants a 60-day window to file the appeal and directed that limitation would not be insisted upon if the appeal is filed within that period. |
| Judgments Relied Upon | Celestium Financial vs. A. Gnanasekaran & Ors., 2025 INSC 804 |
| Logic / Jurisprudence / Authorities Relied Upon | Supreme Court’s interpretation of “victim” under CrPC/BNSS and entitlement to appeal against acquittals in Section 138 cases |
| Facts as Summarised by the Court | Respondent was acquitted by JMFC, Dallirajhara on 26-07-2022 in Complaint Cases No. 57/2019 and 94/2019 under Section 138 NI Act; appellants filed appeals under Section 378(4) CrPC |
| Citations | 2025 INSC 804 |
Practical Impact
| Category | Impact |
|---|---|
| Binding On | All subordinate courts in Chhattisgarh |
| Persuasive For | Other High Courts |
| Follows | Celestium Financial vs. A. Gnanasekaran, 2025 INSC 804 |
What’s New / What Lawyers Should Note
- Confirms that complainants in cheque-bounce proceedings under Section 138 NI Act qualify as “victims” under Section 2(wa) CrPC and Section 2(y) BNSS.
- Establishes that such complainants can invoke the proviso to Section 372 CrPC (Section 413 BNSS) to appeal acquittals.
- Grants a 60-day window for filing fresh appeals against acquittals, with limitation waived if filed within that period.
- Lower courts must not insist on limitation objections when appeals are filed in accordance with this order.
Summary of Legal Reasoning
- The Court took note of the Supreme Court’s judgment in Celestium Financial (2025 INSC 804) holding that complainants under Section 138 NI Act are “victims” under CrPC/BNSS.
- It held that this classification entitles complainants to file appeals under the proviso to Section 372 CrPC corresponding to Section 413 BNSS.
- Exercising its supervisory jurisdiction, the High Court granted the appellants 60 days to file such appeals and directed that limitation would not be a bar if filed within time.
- Administrative directions were issued to return and retain certified copies and transmit records back to the trial court.
Arguments by the Parties
Appellants (Somit Kumar Sahu)
- A complainant in a Section 138 NI Act prosecution is a “victim” under Section 2(wa) CrPC and Section 2(y) BNSS.
- Entitled to appeal against acquittals under the proviso to Section 372 CrPC (Section 413 BNSS).
- Limitation should be waived to permit fresh appeals.
Respondent (Mangilal Rathi)
- No arguments recorded in the judgment.
Factual Background
Respondent was tried under Section 138 of the Negotiable Instruments Act in two complaint cases (Nos. 57/2019 and 94/2019) before the JMFC, Dallirajhara. By common order dated 26 July 2022, the learned Magistrate acquitted the respondent. The complainant filed appeals under Section 378(4) CrPC, challenging those acquittals.
Statutory Analysis
- Section 138 of the Negotiable Instruments Act (cheque-bounce offence).
- Section 378(4) CrPC (appeal against acquittal).
- Proviso to Section 372 CrPC (entitlement of “victims” to appeal) corresponding to Section 413 BNSS.
- Section 2(wa) CrPC and Section 2(y) BNSS defining “victim.”
Procedural Innovations
- Creation of a 60-day period for filing fresh appeals against acquittals under Section 138 NI Act.
- Direction that limitation will not be insisted upon if the appeal is filed within the prescribed period.
Alert Indicators
- ✔ Precedent Followed
- 📅 Time-Sensitive (limitation waiver)
Citations
- Celestium Financial vs. A. Gnanasekaran & Ors., 2025 INSC 804