Does the proviso to Section 372 CrPC entitle a complainant to appeal an acquittal under Section 138 NI Act and permit waiver of limitation?

Summary

Practical Impact

What’s New / What Lawyers Should Note

• Clarifies that a complainant-victim acquitted under Section 138 NI Act has a statutory right to appeal under the proviso to Section 372 CrPC.
• Holds that appellate courts must not insist on limitation if the appeal is filed within the period directed by the High Court.
• Establishes that a High Court can reserve liberty to file an appeal within an extended timeframe and direct registry not to raise limitation objections.

Summary of Legal Reasoning

1. Noted two acquittals under Section 138 NI Act by the Judicial Magistrate on 21.10.2019 and 05.08.2019.
2. Examined the Supreme Court’s decision in Celestium Financial vs. A. Gnanasekaran (08.04.2025), which construed the proviso to Section 372 CrPC as granting a victim the right to appeal an acquittal.
3. Held that, in line with Celestium Financial, the complainant may file an appeal within 45 days, and the appellate court shall not insist on limitation.
4. Observed no opposition from the respondent.
5. Disposed the appeals, reserving liberty and issuing directions to the registry and the concerned court on certified copies and records.

Arguments by the Parties

Petitioner (Bank):

• Relied on Celestium Financial vs. A. Gnanasekaran to assert a right of appeal under the proviso to Section 372 CrPC.
• Sought disposal of the appeals with liberty to file a fresh appeal within a specified period.

Respondent (Accused):

• Did not oppose the appellants’ prayer.

Factual Background

Pragati Mahila Sahakari Bank filed two appeals (ACQA Nos. 157 & 160 of 2020) against acquittals of A. Channeya under Section 138 of the Negotiable Instruments Act in two proceedings before the Judicial Magistrate, Durg, dated 21.10.2019 and 05.08.2019. At the High Court hearing, the bank’s counsel invoked the Supreme Court’s Celestium Financial judgment (08.04.2025) to claim an appellate right under the proviso to Section 372 CrPC. The accused did not contest this prayer. The High Court disposed of the appeals, granting the bank liberty to file an appeal within 45 days and directing that limitation objections be waived.

Statutory Analysis

• Section 138, Negotiable Instruments Act, 1881: Establishes the offence of dishonour of cheque.
• Section 372, Code of Criminal Procedure, 1973, proviso: Interpreted as giving a victim-complainant the right to appeal against any order of acquittal, regardless of conviction appeal provisions. The High Court applied the Supreme Court’s narrow, purposive reading to allow appeals and waive limitation.

Procedural Innovations

• High Court exercises its power to reserve liberty for filing appeals within an extended period and mandate waiver of limitation objections by the appellate court.
• Directions on registry procedures for certified copies and record transmission.

Alert Indicators

• ✔ Precedent Followed
• 📅 Time-Sensitive

Citations

• 2025:CGHC:44516
• Celestium Financial vs. A. Gnanasekaran Etc., 2025 INSC 804