SHETH RAJENDRABHAI BABUBHAIversusSTATE OF GUJARAT
- Disposal
- 97-DISPOSED AS TRANSFER TO DISTRICT/SESSION COURT N.I. ACT.
- Bench
- HEMANT M PRACHCHHAK
Holding
The complainant, being the victim of a cheque dishonour, is entitled to file an appeal under the proviso to Section 372 CrPC (and Section 413 BNSS) against the acquittal, and the appeal must be transferred to the Sessions Court.
Summary
The appellant, the original complainant in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, appealed the acquittal of the accused by filing a petition under Section 378 CrPC and Section 419 BNSS. The key issue was whether the complainant, as the victim, could invoke the proviso to Section 372 CrPC (or Section 413 BNSS) to file an appeal against the acquittal. The High Court relied on the Supreme Court’s decision in Celestium Financial v. A. Gnanasekaran, which held that the complainant is the victim and has an unconditional right to appeal under the proviso. It also noted a pending Supreme Court reference on the matter. Consequently, the Court did not examine the merits but ordered the appeal to be transferred to the appropriate Sessions Court as an appeal under Section 372 CrPC/Section 413 BNSS, directing the registry to forward the complete record.
Issues considered
- The complainant/victim’s right to prefer an appeal under the proviso to Section 372 CrPC (or Section 413 BNSS) against an acquittal in a Section 138 NI Act case.
Legislation cited
- Code of Criminal Procedure, 1973s. 372, s. 374, s. 378
- Negotiable Instruments Act, 1881s. 138
Subjects
Judgment
R/CR.A/1673/2022 ORDER DATED: 06/08/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL APPEAL (AGAINST ACQUITTAL) NO. 1673 of 2022
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SHETH RAJENDRABHAI BABUBHAI
Versus
STATE OF GUJARAT & ANR.
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Appearance:
MS POOJA M PANCHAL(12720) for the Appellant(s) No. 1
MR NISHITH P THAKKAR(2836) for the Opponent(s)/Respondent(s) No. 2
MS JIRGA JHAVERI, ADDL. PUBLIC PROSECUTOR for the
Opponent(s)/Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
Date : 06/08/2026
ORDER
1. The present appeal is 5led by the appellant – original
complainant under Section 378 of the Criminal Procedure Code, 1973
(hereinafter referred to as ‘the Code’ for short) / under Section 419 of
the Bharatiya Nagrik Suraksha Sanhita, 2023 (hereinafter referred to
as ‘BNSS’ for short) against the judgment and order dated 22.04.2022
passed by the learned Additional Judicial Magistrate First Class,
Visnagar, Mehsana (hereinafter be referred to as “the Trial Court),
whereby the learned trial Court has acquitted the respondent -
accused for the oEence under Section 138 of the Negotiable
Instruments Act, 1881 (hereinafter referred to as the ‘NI Act’ for
short).
2. Heard learned counsel appearing for the respective parties.
3. This matter is required to be transferred in view of the recent
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R/CR.A/1673/2022 ORDER DATED: 06/08/2026
decision of the Hon’ble Supreme Court in the case of Celestium
Financial Vs. A.Gnanasekaran Etc. reported in 2025 (3) GLH 747
wherein the Hon’ble Supreme Court has held that the original
complainant to be considered as a victim of the oEence under Section
138 of the Act and, therefore, the complainant has right to 5le an
appeal under Section 372 of the Code before the lower Appellate
Court i.e. immediate Sessions Court before the District and the
judgment dated 22.12.2025 rendered in Criminal Misc. Application
No.12753 of 2019 with Criminal Misc. Application No. 12908 of 2019.
4. Before entering into the merits of this case, this Court deems it
proper to refer to the decision rendered by this Court in the case of
Shivsinh Ganpatsinh Solanki Vs. State of Gujarat being Criminal
Miscellaneous Application Nos. 12753 of 2019 with 12908 of 2019 and
the decision of the Hon'ble Supreme Court in the case of Celestium
Financial Vs. A. Gyanasekaran (supra) wherein the Hon’ble
Supreme Court has observed and held that the complainant, in a
complaint under Section 138 of the N.I. Act, considered to be a victim,
has a speci5c right to 5le an appeal against the order of acquittal
under Section 372 of the Code / Section 413 of the BNSS to the Court
which is immediately superior in hierarchy i.e. the Sessions Court.
5. In view of the above, learned counsel for respondent - accused
submits that let the matter be remanded back to the concerned
Sessions Court.
6. Learned Additional Public Prosecutor has pointed out that the
matter in the case of Celestium Financial Vs. A. Gyanasekaran
(supra) is now pending at large before the Hon’ble Supreme Court in
case of M/s. Everest Automobiles Vs. M/s. Ranjit Enterprises in Special
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R/CR.A/1673/2022 ORDER DATED: 06/08/2026
Leave to Appeal (Crl.) No. 12350/2024 wherein the Hon’ble Supreme
Court has observed that it is desirable that a larger Bench gives an
authoritative pronouncement on this issue as it has far-reaching
consequences. Therefore, the matter is to be decided subject to the
5nal outcome of the reference.
7. In the case of Celestium Financial Vs. A. Gyanasekaran
(supra), the Hon’ble Supreme Court has held and observed in paras –
7.8, 7.9 and 7.12 as under:-
“7.8 In the case of an o ence alleged against an accused under
Section 138 of the Act, we are of the view that the complainant
is indeed the victim owing to the alleged dishonour of a cheque.
In the circumstances, the complainant can proceed as per the
proviso to Section 372 of the CrPC and he may exercise such an
option and he need not then elect to proceed under Section 378
of the CrPC.
7.9 In this context, we wish to state that the proviso to Section
372 does not make a distinction between an accused who is
charged of an o ence under the penal law or a person who is
deemed to have committed an o ence under Section 138 of the
Act. Symmetrical to a victim of an o ence, a victim of a deemed
o ence under Section 138 of the Act also has the right to prefer
an appeal against any order passed by the court acquitting the
accused or convicting for a lesser o ence or imposing an
inadequate compensation. When viewed from the perspective of
an o ence under any penal law or a deemed o ence under
Section 138 of the Act, the right to *le an appeal is not
circumscribed by any condition as such, so long as the appeal
can be premised in accordance with proviso to Section 372
which is the right to *le an appeal by a victim, provided the
circumstances which enable such a victim to *le an appeal are
met. The complainant under Section 138 is the victim who must
also have the right to prefer an appeal under the said provision.
Merely because the proceeding under Section 138 of the Act
commences with the *ling of a complaint under Section 200 of
the CrPC by a complainant, he does not cease to be a victim
inasmuch as it is only a victim of a dishonour of cheque who can
*le a complaint. Thus, under Section 138 of the Act both the
complainant as well as the victim are one and the same person.
7.12 The reasons for the above distinction are not far to see
and can be elaborated as follows:
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R/CR.A/1673/2022 ORDER DATED: 06/08/2026
Firstly, the victim of a crime must have an absolute right to
prefer an appeal which cannot be circumscribed by any
condition precedent. In the instant case, a victim under Section
138 of the Act, i.e., a payee or the holder of a cheque is a person
who has su ered the impact of the o ence committed by a
person who is charged of the o ence, namely, the accused,
whose cheque has been dishonoured.
Secondly, the right of a victim of a crime must be placed on par
with the right of an accused who has su ered a conviction, who,
as a matter of right can prefer an appeal under Section 374 of
the CrPC. A person convicted of a crime has the right to prefer
an appeal under Section 374 as a matter of right and not being
subjected to any conditions. Similarly, a victim of a crime,
whatever be the nature of the crime, unconditionally must have
a right to prefer an appeal.
Thirdly, it is for this reason that the Parliament thought it *t to
insert the proviso to sub-section 372 without mandating any
condition precedent to be ful*lled by the victim of an o ence,
which expression also includes the legal representatives of a
deceased victim who can prefer an appeal. On the contrary, as
against an order of acquittal, the State, through the Public
Prosecutor can prefer an appeal even if the complainant does
not prefer such an appeal, though of course such an appeal is
with the leave of the court. However, it is not always necessary
for the State or a complainant to prefer an appeal. But when it
comes to a victim’s right to prefer an appeal, the insistence on
seeking special leave to appeal from the High Court under
Section 378(4) of the CrPC would be contrary to what has been
intended by the Parliament by insertion of the proviso to Section
372 of the CrPC.
Fourthly, the Parliament has not amended Section 378 to
circumscribe the victim’s right to prefer an appeal just as it has
with regard to a complainant or the State *ling an appeal. On
the other hand, the Parliament has inserted the proviso to
Section 372 so as to envisage a superior right for the victim of
an o ence to prefer an appeal on the grounds mentioned therein
as compared to a complainant.
Fifthly, the involvement of the State in respect of an o ence
under Section 138 of the Act is conspicuous by its absence. This
is because the complaint *led under that provision is in the
nature of a private complaint as per Section 200 of the CrPC and
Section 143 of the Act by an express intention incorporates the
provisions of the CrPC in the matter of trial of such a deemed
o ence tried as a criminal o ence. Therefore, the complainant,
who is the victim of a dishonour of cheque must be construed to
be victim in terms of the proviso to Section 372 read with the
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R/CR.A/1673/2022 ORDER DATED: 06/08/2026
de*nition of victim under Section 2(wa) of the CrPC.”
8. In view of the said submissions and the decision of the Hon’ble
Supreme Court in the case of Celestium Financial Vs. A.
Gyanasekaran (supra) and decision of this Court in the case of
Thakar Hariprasad Dalsukhram Vs. State of Gujarat and
another reported in 2026 SCC OnLine Guj 569, this appeal is
disposed of with a direction to the Registry to transfer the appeal to
the concerned Sessions Court. After it is transferred to the concerned
Sessions Court, it has to be treated as an Appeal under the proviso
under Section 372 of the Code / Section 413 of BNSS and numbered
accordingly and issue notice to the parties. The Registry is directed to
transfer the entire record of the case, including the certi5ed copies of
the order impugned and record & proceedings, if lying with this Court,
to the concerned lower Appellate Court, forthwith.
9. Considering that the matter has been pending for considerable
time, the learned lower Appellate Court is required to make
endeavour to dispose of the matter as expeditiously as possible. It is
clari5ed that this Court has not gone into the merits of the matter at
this stage.
(HEMANT M. PRACHCHHAK,J)
Dolly
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: DOLLYBEN CHETANBHAI VADUKAR(HC01392), PRIVATE SECRETARY, at High Court of Gujarat on 06/08/2026 17:04:56
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