Does a “victim” under Section 138 NI Act have a statutory right to appeal an acquittal under the proviso to Section 372 CrPC?

The Chhattisgarh High Court applies the Supreme Court’s Celestium Financial ruling (2025 INSC 804), affirming that complainants can appeal acquittals in negotiable-instrument cases; persuasive authority for other High Courts on victims’ appellate rights.

 

Summary

Category Data
Case Name ACQA No. 946 of 2024 of Vikas Keswani Vs Sulabh Israni
CNR CGHC010313932024
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 Bench
Precedent Value Persuasive
Affirms / Overrules Affirms Supreme Court precedent
Type of Law Criminal Procedure / Appellate
Questions of Law Whether a complainant (victim) can appeal an acquittal order under the proviso to Section 372 CrPC in NI Act prosecutions?
Ratio Decidendi

The Court held that in light of the Supreme Court’s Celestium Financial judgment (2025 INSC 804), a complainant acquitted in a Section 138 NI Act case has a statutory right to file an appeal under the proviso to Section 372 CrPC.

Appeals against acquittals must lie to the same appellate forum as appeals against convictions. Limitation for filing such an appeal may be waived if the appeal is filed within 45 days of this order.

Judgments Relied Upon Celestium Financial vs A. Gnanasekaran Etc., 2025 INSC 804
Logic / Jurisprudence / Authorities Relied Upon
  • Interpretation of proviso to Section 372 CrPC as per Celestium
  • Principles of statutory right to appeal for victims
Facts as Summarised by the Court Appellant challenged five acquittals dated 30.12.2021 by Judicial Magistrate First Class, Raipur, in five petitions under Section 138 NI Act.
Citations
  • 2025:CGHC:44588
  • 2025 INSC 804

Practical Impact

Category Impact
Binding On All subordinate courts in Chhattisgarh
Persuasive For Other High Courts, Supreme Court
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 right to appeal an order of acquittal under the proviso to Section 372 CrPC.
  • High Court will permit a fresh appeal within 45 days and will not insist on statutory limitation if filed in time.
  • Practitioners can cite this decision to secure appellate remedy for clients acquitted in cheque-bounce matters.

Summary of Legal Reasoning

  1. Identification of issue: appeals against acquittals in Section 138 NI Act prosecutions.
  2. Reliance on Supreme Court in Celestium Financial (2025 INSC 804), which construed the proviso to Section 372 CrPC to grant victims a right of appeal against acquittal orders.
  3. Application: High Court disposes appeals by preserving appellant’s liberty to file statutory appeal within 45 days, waiving limitation.
  4. Direction to return records to facilitate filing of fresh appeal before appropriate court.

Arguments by the Parties

Appellant (Complainant):

  • Relied on Celestium Financial to claim right to appeal acquittals.
  • Sought disposal of these appeals with liberty to file fresh appeal under proviso to Section 372 CrPC.

Respondent (Accused):

  • Did not oppose appellant’s prayer.

Factual Background

The appellant challenged five separate acquittal orders dated 30.12.2021 by the JMFC, Raipur, in Criminal Cases Nos. 1–5/2017 under Section 138 of the Negotiable Instruments Act. Each acquittal was assailed by filing ACQA appeals. The High Court heard arguments in light of a recent Supreme Court ruling on victims’ appellate rights.

Statutory Analysis

  • Section 138 NI Act: Cheque-bounce offence; leads to criminal complaint.
  • Section 372 CrPC proviso: Grants “victim” the right to appeal against an order of acquittal; interpreted expansively in Celestium Financial.
  • Limitation provisions: Held subject to waiver if appeal filed within 45 days of High Court order.

Dissenting / Concurring Opinion Summary

No separate or dissenting opinions; single-judge decision.

Procedural Innovations

  • Reservation of liberty to file fresh appeals under proviso to Section 372 CrPC without limitation objections.
  • Direction to registry for return of records to facilitate appeal.

Alert Indicators

  • ✔ Precedent Followed

Citations

  • 2025:CGHC:44588
  • Celestium Financial vs A. Gnanasekaran Etc., 2025 INSC 804

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