Can a Complainant Under Section 138 NI Act Appeal as a “Victim” and Be Excused From Delay Under the Proviso to Section 372 CrPC?

High Court Applies Celestium Financial to Extend Appellate Rights to NI Act Complainants, Affirms Victim-Centric Interpretation, and Waives Limitation if Filed Within 60 Days

Summary

Practical Impact

What’s New / What Lawyers Should Note

• Post-Celestium Financial, complainants under Section 138 NI Act are entitled to file appeals as “victims” under the proviso to Section 372 CrPC.
• High Courts can reserve leave for filing delayed appeals and direct lower courts not to insist on limitation if appeals are filed within the period granted.
• This decision provides a procedural route for complainants to challenge acquittals without being barred by time constraints.

Summary of Legal Reasoning

1. The appeal under Section 378(4) CrPC challenged the acquittal under Section 138 NI Act.
2. Counsel for the appellant invoked Celestium Financial (2025 INSC 804), which deemed the complainant a “victim” under Section 2(wa) CrPC/Section 2(y) BNSS and granted appellate rights under the proviso to Section 372 CrPC.
3. Applying that precedent, the High Court granted leave to the appellant to file an appeal within 60 days and directed the appropriate court to waive limitation.
4. The Court’s reasoning rested entirely on the Supreme Court’s holding, ensuring consistency in victim-centric interpretation and appellate remedy.

Arguments by the Parties

Petitioner

• Relied on M/s Celestium Financial (2025 INSC 804) to assert “victim” status and entitlement to appeal under the proviso to Section 372 CrPC.
• Sought disposal of the appeal with liberty to file a substantive appeal despite limitation.

Factual Background

The appellant filed an appeal under Section 378(4) CrPC against an acquittal under Section 138 of the Negotiable Instruments Act by the JMFC Raipur in Criminal Case No. 4040/2017. The appeal hinged on the Supreme Court’s ruling in Celestium Financial that classifies the complainant as a “victim” under victim-centred procedural provisions. The High Court, recognizing the new appellate right, disposed of the appeal while reserving leave for the appellant to file an appeal within 60 days. The Court also instructed that the appropriate court should not insist on the limitation period in entertaining the appeal.

Statutory Analysis

The judgment interprets Section 378(4) CrPC (acquittal appeal by complainant) read with Section 138 NI Act to establish appellate jurisdiction. It invokes Section 2(wa) CrPC/Section 2(y) BNSS definitions of “victim” and applies the proviso to Section 372 CrPC (Section 413 BNSS) to extend an appeal right to complainants. The Court’s direction on limitation is grounded in equitable application of these procedural provisions.

Procedural Innovations

• Courts may reserve leave to file delayed appeals on victim-centred grounds and instruct lower courts to disregard limitation if appellants comply within the period granted.

Alert Indicators

• ✔ Precedent Followed
• 📅 Time-Sensitive

Citations

• M/s Celestium Financial Vs. A. Gnanasekaran Etc., 2025 INSC 804
• ACQA No. 20 of 2024 (High Court of Chhattisgarh), Judgment dated 02/09/2025