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High Court of Gujarat

AMBALAL SHAH AND SONS THRO MUKESHBHAI AMBALAL SHAHversusSTATE OF GUJARAT

Disposal
97-DISPOSED AS TRANSFER TO DISTRICT/SESSION COURT N.I. ACT.

Holding

A complainant in a Section 138 NI Act case has a specific right to appeal under the proviso of Section 372 CrPC, and the appeal must be transferred to the Sessions Court for adjudication.

Summary

The appellant filed an appeal under Section 378 of the CrPC against the trial court's acquittal on a charge under Section 138 of the Negotiable Instruments Act. The High Court, referencing its own earlier decision in Shivsinh Ganpatsinh Solanki v. State of Gujarat (Criminal Miscellaneous Application Nos. 12753/2019 & 12908/2019) and the Supreme Court judgment in Celestium Financial v. A. Gyanasekaran (2025 INSC 804), held that a complainant‑victim has a specific right to appeal under the proviso of Section 372 CrPC to the Sessions Court. Consequently, the High Court declined to consider the merits and ordered the entire record to be transferred to the appropriate Sessions Court for further hearing as an appeal under Section 372. The order clarified that the appeal would be treated as a Section 372 appeal and numbered accordingly. No substantive merits of the original charge were addressed.

Issues considered

  • The applicability of the complainant’s right to appeal under the proviso of Section 372 CrPC after an acquittal under Section 138 NI Act
  • Whether the High Court should entertain the appeal on merits or transfer it to the Sessions Court

Legislation cited

Subjects

Acquittal appealSection 138 NI ActSection 372 CrPCTransfer of appealSessions Court jurisdictionProcedural law

Judgment

     R/CR.A/1758/2024                                      ORDER DATED: 09/02/2026




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

     R/CRIMINAL APPEAL (AGAINST ACQUITTAL) NO. 1758 of 2024

==========================================================
     AMBALAL SHAH AND SONS THRO MUKESHBHAI AMBALAL SHAH
                            Versus
                   STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR RAXIT J DHOLAKIA(3709) for the Appellant(s) No. 1
BAILABLE WARRANT SERVED for the Opponent(s)/Respondent(s) No. 2
K K MAGHNANI(7543) for the Opponent(s)/Respondent(s) No. 2
MR K B MAGHNANI(9673) for the Opponent(s)/Respondent(s) No. 2
MS JYOTI BHATT, ADDITIONAL PUBLIC PROSECUTOR for the
Opponent(s)/Respondent(s) No. 1
==========================================================

 CORAM:HONOURABLE MR.JUSTICE SANJEEV J.THAKER

                               Date : 09/02/2026

                                   ORAL ORDER


1.     This is an acquittal appeal filed under Section 378 of

the Code of Criminal Procedure, 1973 (hereinafter referred to

as `the Code’ for short) by the complainant against the

judgment and order impugned passed by the learned trial

Court, whereby the learned trial Court had acquitted the

respondent/s/accused of the charge under Section 138 of the

Negotiable Instruments Act, 1881 (hereinafter referred to as

the `NI Act’ for short).



2.     Heard learned advocates for the parties. Learned APP

has submitted that this matter is required to be transferred

in   view     of    the   recent    decision       of   this   Court    passed       in
Criminal Miscellaneous Application Nos. 12753 of 2019 with



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     R/CR.A/1758/2024                                             ORDER DATED: 09/02/2026




12908 of 2019.


3.      Before entering into the merits of this case, this Court

deems it proper to refer to the latest decision rendered by

this Court in the case of Shivsinh Ganpatsinh Solanki V/s

State      of    Gujarat         &        Anr.     being    Criminal       Miscellaneous
Application Nos. 12753 of 2019 with 12908 of 2019 on
23.12.2025, wherein, after considering the various judgments
of   the        Hon’ble        Supreme            Court,   more      particularly,          the

judgment         in     the     matter       of     M/s    Celestium      Financial          V/s
A.Gyanasekaran                etc.       reported     in   2025      INSC       804,        has

observed and held that the Complainant, in a complaint

under Section 138 of the N.I. Act, being a Victim, has a

specific right to appeal under proviso of Section 372 of the

Code to the Court which is immediately superior in hierarchy

i.e., the Sessions Court. Therefore, the applications for leave

to appeal/appeals which are pending before this Court can be

disposed         of     with         a     direction       to   transfer        the         said

application/appeal to the concerned Sessions Court.


4.      In view of the above, learned advocate for the petitioner

requested to transfer the appeal to the concerned Sessions

Court.


5.      In view of the said request, this appeal is disposed of



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           R/CR.A/1758/2024                                                        ORDER DATED: 09/02/2026




  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       certified         copies         of     the        order

  impugned and record & proceedings, if lying with this Court,
  to the concerned lower Appellate Court, forthwith.



  6.         It is clarified that this Court has not gone into the

  merits of the matter at this stage.



                                                                                 (SANJEEV J.THAKER,J)
  Bharat


Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: KOSHTI BHARATKUMAR(HC01064), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 09/02/2026 18:29:04




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