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Bombay High Court

M/S. SULPHUR MILLS LTD.versusKAMIREDDY MURALI REDDY S/O. SUBRAMANYAN AND ANR

Decided
Disposal
Disposed Off

Holding

The Court allowed the withdrawal of the Section 378(4) application and granted liberty to file an appeal under Section 372 within eight weeks, with the benefit of the elapsed period for condonation of delay.

Summary

M/s. Sulphur Mills Ltd., the original complainant and victim, filed an application for leave to appeal under Section 378(4) of the CrPC challenging the Metropolitan Magistrate's acquittal in a case under Section 138 of the Negotiable Instruments Act. Relying on the Supreme Court’s recent decision in Celestium Financial Services Pvt. Ltd. v. Gnanasekaran, the appellant sought permission to withdraw the present application and instead file an appeal under Section 372 of the CrPC before the Sessions Court. The Court, agreeing with the Supreme Court precedent, allowed the withdrawal and granted liberty to file the Section 372 appeal within eight weeks, permitting the appellant to claim the time elapsed on the withdrawn application for condonation of any delay. The Court also directed the Registry to return the certified copy of the impugned order for filing the appeal. Consequently, the application was disposed of as withdrawn, and the interim application was also dismissed.

Issues considered

  • Whether the appellant may withdraw the Section 378(4) application and file an appeal under Section 372 of the CrPC in light of the Supreme Court’s decision in Celestium Financial Services Pvt. Ltd. v. Gnanasekaran.
  • Whether the period during which the withdrawn application remained pending can be counted towards condonation of delay for the forthcoming appeal.

Legislation cited

Subjects

  • Criminal appeal
  • Section 138 NI Act
  • Section 372 CrPC
  • Withdrawal of application
  • Condonation of delay
  • Supreme Court precedent

Judgment

                                                                                           14 ALP 366-19.DOC



LAXMI
SUBHASH
                                IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SONTAKKE
                                     CRIMINAL APPELLATE JURISDICTION
Digitally signed
by LAXMI
SUBHASH
SONTAKKE
Date: 2026.01.13
15:27:43 +0530
                            APPLICATION FOR LEAVE TO APPEAL NO. 366 OF 2019
                                                WITH
                                  INTERIM APPLICATION NO. 69 OF 2019
                                                 IN
                            APPLICATION FOR LEAVE TO APPEAL NO. 366 OF 2019


                   M/s. Sulphur Mills Ltd.                                         ...Appellant
                         Versus
                   Kamireddy Murali Reddy & Anr.                                   ...Respondents
                                                     _______
                   Mr. Sanjeev Sawant a/w. Abhishek Deshmukh and Bhakti Wast for Appellant.
                   Mr. Avinash Kamkhedkar, APP for the State.


                                                         _______

                                               CORAM:          AARTI SATHE, J.

                                               DATE:           13th JANUARY 2026

                   P.C.

                   1.         The present Application is preferred under Section 378(4) of the Code

                   of Criminal Procedure, 1973, challenging the judgment and order of acquittal

                   passed in Criminal Case No. 545/SS/2016 by the learned Metropolitan Magistrate,

                   63rd Court, Andheri, Mumbai whereby the Respondents came to be acquitted of

                   the offence punishable under Section 138 of the Negotiable Instruments Act, 1881.


                   2.            Learned counsel appearing for the Applicant submits that the

                   Applicant is the original complainant as well as the victim in the present case.


                   3.            Learned counsel further submits that in view of the recent decision of

                   the Hon’ble Supreme Court in Celestium Financial Services Pvt. Ltd. v. A.


                                                      Page 1 of 3
                   Laxmi
                                                                      14 ALP 366-19.DOC



Gnanasekaran, reported in 2025 SCC OnLine SC 1320, the Applicant would be

entitled to prefer an Appeal under Section 372 of the Code of Criminal Procedure,

1973. He, therefore, seeks leave to withdraw the present Criminal Application with

liberty to file an Appeal under Section 372 of the Code before the learned Sessions

Court.


4.         Reserving the liberty as prayed for, the Applicant is permitted to

withdraw the present Application, in view of the settled legal position as

enunciated by the Hon’ble Supreme Court in Celestium Financial Services Pvt.

Ltd. (supra).


5.         If such Appeal is filed before the learned Sessions Court within a period

of eight (8) weeks from today, the Applicant shall be entitled to the benefit of the

period during which the present Application remained pending, for the purpose of

seeking condonation of delay, if any.


6.         If the applicant prefers an Appeal within a period of 8 weeks as

directed, before the learned Sessions Court, considering that the proceedings in

respect of which the Summary Criminal Cases have been preferred are old

proceedings, the Sessions Court may expeditiously decide the Appeal filed before

it.


7.         The Registry is directed to verify and return the original certified copy

of the impugned judgment and order to the learned Advocate for the Applicant,

for the purpose of filing the Appeal before the Sessions Court, on submitting a




                                   Page 2 of 3
Laxmi
                                                                   14 ALP 366-19.DOC



photocopy of the impugned order. Registry shall verify the photocopy and return

the certified copy to the learned Advocate for the Applicant.


8.         The Appeal is accordingly disposed of as withdrawn with the aforesaid

liberty. In view of disposal of the Appeal, nothing survives in the above Interim

Application and the same stands disposed of.




                                           (AARTI SATHE, J.)




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Laxmi


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