GUJARAT STATE CO-OP. AGRICULTURE AND RURAL DEVELOPMENT BANK LTD. THRO RATANSINH CHANDANSINH VAGHELAversusSTATE OF GUJARAT
- Disposal
- 97-DISPOSED AS TRANSFER TO DISTRICT/SESSION COURT N.I. ACT.
- Bench
- SANJEEV THAKER
Holding
The appeal must be transferred to the Sessions Court and treated as an appeal under the proviso to Section 372 of the Code (Section 413 of the BNSS).
Summary
The Gujarat State Co‑op. Agriculture and Rural Development Bank Ltd. appealed against the trial court's acquittal of Ratansinh Chandansinh Vaghela under Section 138 of the Negotiable Instruments Act. The appeal was filed under Section 378 of the CrPC and Section 419 of the Bharatiya Nagarik Suraksha Sanhita. The High Court referred to its earlier decision in Shivsinh Ganpatsinh Solanki v. State of Gujarat, which held that a complainant who is also a victim must invoke the victim‑specific appellate remedy under the proviso to Section 372 of the CrPC (Section 413 of the BNSS) and file the appeal before the Sessions Court. Applying that precedent, the Court declined to entertain the appeal itself and ordered the record to be transferred to the appropriate Sessions Court for a Section 372/413 appeal. No merits of the underlying criminal charge were examined.
Issues considered
- Whether a complainant who is also a victim under Section 138 of the NI Act may appeal an acquittal under Section 378 of the CrPC/Section 419 of the BNSS or must use the victim‑specific remedy under Section 372 of the CrPC (Section 413 of the BNSS).
- Which court has jurisdiction to entertain an appeal against a magistrate's order of acquittal in a Section 138 NI Act case.
Legislation cited
- Bharatiya Nagarik Suraksha Sanhita, 2023s. 413, s. 419
- Code of Criminal Procedure, 1973s. 372, s. 378
- Negotiable Instruments Act, 1881s. 138
Subjects
Judgment
R/CR.A/3038/2025 ORDER DATED: 20/04/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL APPEAL (AGAINST ACQUITTAL) NO. 3038 of 2025
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GUJARAT STATE CO-OP. AGRICULTURE AND RURAL DEVELOPMENT
BANK LTD. THRO RATANSINH CHANDANSINH VAGHELA
Versus
STATE OF GUJARAT & ANR.
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Appearance:
MS ANCHAL GUPTA FOR MR.AMIT R JOSHI(6682) for the Appellant(s) No.
1
MS SHRUTI PATHAK, APP for the Opponent(s)/Respondent(s) No. 1
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CORAM:HONOURABLE MR.JUSTICE SANJEEV J.THAKER
Date : 20/04/2026
ORAL ORDER
1. This Criminal Appeal is filed under Section 378 of the Code of
Criminal Procedure, 1973 (“Code or CrPC”) / Section 419 of the
Bharatiya Nagarik Suraksha Sanhita, 2023 (`BNSS’ for short) by the
Complainant against the impugned judgment and order 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 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.
Page 1 of 6
R/CR.A/3038/2025 ORDER DATED: 20/04/2026
being Criminal Miscellaneous Application Nos. 12753 of 2019
with 12908 of 2019, 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. reported in 2025 INSC 804, has held (in
Paragraph Nos.11, 19 to 23, 31, 32, 34 43, 56, 78 to 80) as under:
“ xxxxx
11. Upon a perusal of the aforesaid judgment, it becomes
evident that in paragraph 7.7 the Apex Court has, in clear
terms, recognized that a Complainant under Section 138 of
the NI Act, having suffered financial loss and injury arising
from the dishonour of a cheque, is an “aggrieved party”
and, therefore, falls within the definition of a “Victim” under
Section 2(wa) of the Code.
xxxxx
19. Having dealt with the first limb of the argument, the only
other argument which can possibly be made is that the
Victim has the option to choose the hat that he wishes to
wear (i.e., that of a Victim or of a Complainant). It can be
argued that if the Victim chooses to appeal as a Victim,
he/she can go under Section 372 of the Code and if as a
Complainant, then under Section 378 of the Code.
20. It is clear that the Code provides for two remedies. First,
under Section 372 for a Victim. Second, under Section
378(4) for a Complainant. There is no confusion if a person
is either a Victim or a Complainant. There is some
divergence of thought when the Victim is also the
Complainant.
21. While trying to approach this issue, at a bare glance, the
statutory framework appears to offer a Complainant (who is
a Victim in given case) two parallel avenues of appeal (i.e.,
Section 372 and Section 378). Therefore, one may well argue
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R/CR.A/3038/2025 ORDER DATED: 20/04/2026
that it is for the person to choose the hat that he wishes to
wear to file the Appeal.
22. This argument, undoubtedly, seems attractive at first blush.
However, venturing a little deeper, it turns out to be wanting.
This is for several reasons which are as follows.
23. First, a Victim was given a right to file an Appeal under the
Code pursuant to some object and keeping in mind some
reasons thereof. Relevant extract of the Statement of Objects
and Reasons of the Criminal Amendment Act, 2009 [Act 5 of
2009] by way of which the proviso to Section 372 of the
Code was introduced, is extracted hereinbelow:
At present, the Victims are the worst sufferers in
a crime and they don't have much role in the
court proceedings. They need to be given
certain rights and compensation, so that there
is no distortion of the criminal justice system.
(emphasis supplied).
xxxxx
31. Bare perusal of the language of the provision, along with the
law as laid down by the Hon’ble Apex Court in Celestium,
Mahabir (supra) and Joseph (supra) would show in certain
terms that the right of a Victim to file an Appeal against an
Order of acquittal is on a higher footing than that of a
Complainant. This is for the simple reason, that the Victim,
in essence is a sufferer/aggrieved party of the alleged
offence, who has been conferred with this right by the
legislature, which is not the case for a Complainant.
32. Hence, to contend that a Victim may simply proceed as a
Complainant under Section 378 of the Code would then
render illusory, the very purpose for which an independent
and substantive right of appeal was conferred upon a Victim.
Such an interpretation would dilute the legislative intent
behind introducing a distinct, unqualified appellate remedy
under the proviso to Section 372 of the Code and would fail
to give meaningful effect to that statutory right.
Page 3 of 6
R/CR.A/3038/2025 ORDER DATED: 20/04/2026
xxxxx
34. Second, as regards the question of “choice” or “election,”
this Court is not persuaded to readily accept (neither would
it be possible for anyone to readily infer) that a person who
is aware of the statutory right to appeal as a Victim (as an
absolute right) would voluntarily subject himself to the more
taxing requirements of Section 378(4) of the Code by
appealing as a Complainant, i.e., to seek special leave of the
Court for filing the Appeal.
xxxxx
43. A harmonious reading of the provisions therefore requires
that, for the purpose of appellate remedy, a Victim, though a
Complainant in a given case, must proceed under Section
372 of the Code rather than invoking Section 378(4) of the
Code.
xxxxx
56. In the present case, in Section 372 of the Code, the said
Appeal has to be filed before the Sessions Court. The Apex
Court, in the said judgment, has also taken into
consideration that the acquittal would be challenged at the
stage of first appeal before the Sessions Court. The Appeal
would not lie to the High Court.
xxxxx
78. For the foregoing reasons, this Court holds that where an
order of acquittal is rendered by a Magistrate, the statutory
remedy available to the Victim is to institute an appeal
before the Sessions Court in terms of the proviso to Section
372 of the Code, which mandates that such an appeal shall
lie to the court that would ordinarily entertain an appeal
against an order of conviction passed by that Court.
79. In view of the above, it transpires 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.
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R/CR.A/3038/2025 ORDER DATED: 20/04/2026
80. In view of the above, the applications/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. 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 and numbered
accordingly.
xxxxx”
4. Therefore, it has been held in the aforesaid judgment 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 (Section 413 of BNSS) to the Court which
is immediately superior in hierarchy i.e., the Sessions Court. 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.
5. In the present case also, given the position of law as now settled and
since the Complainant in the present case is also a Victim, there is no
reason for this Court to take any view different from that taken in
Shivsinh Ganpatsinh (supra).
6. In view of the above, 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. The
Registry is directed to transfer the entire record of the case,
including the certified copies of the order impugned and Record and
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R/CR.A/3038/2025 ORDER DATED: 20/04/2026
Proceedings, if lying with this Court, to the concerned lower
Appellate Court, forthwith. It is open for the parties to agitate all the
grievances before the concerned Court afresh. It is clarified that this
Court has not gone into the merits of the matter at this stage.
(SANJEEV J.THAKER,J)
SRILATHA
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SRILATHA VENKATARAO UPADHYAYULA(HC00185), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 20/04/2026 15:23:25
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