Bombay High Court

K.G.N. BABA TRADERS THROUGH ITS PROP. KASAM SIDDIQUI KACCHIversusM/S. RUCHA FOUNDERS THROUGH ITS PROP. ASTIK VITTHALRAO PATIL AND ANR

Disposal: Disposed Off
Bench: RANJITSINHA RAJA BHONSALE

Holding

A victim has a right to appeal an order of acquittal under Section 372 of the CrPC, and the application is to be transferred as an appeal to the concerned District and Sessions Court.

Summary

The applicant K.G.N. Baba Traders filed an application seeking leave to appeal an order of acquittal under Section 138 of the Negotiable Instruments Act. The High Court considered the Supreme Court’s decision in Celestium Financial v. Ganasekaran, which held that a victim has a statutory right to appeal an acquittal under Section 372 of the Code of Criminal Procedure. The Court concluded that the appeal should be treated as an appeal under the proviso to Section 372 and ordered the matter to be transferred to the appropriate District and Sessions Court. It also directed that the time spent in prosecuting the leave application be excluded when calculating limitation periods. The application was consequently disposed of, with the appeal to proceed in the lower court.

Issues considered

Whether a victim can prefer an appeal against an order of acquittal under Section 138 of the Negotiable Instruments Act.
Whether Section 372 of the CrPC, as interpreted in Celestium Financial v. Ganasekaran, confers such a right on the victim.
Procedural steps required for transferring the matter to the appropriate court.

Legislation cited

Code of Criminal Procedure — s. 372
Negotiable Instruments Act, 1881 — s. 138

Subjects

Section 138 NI Act
appeal against acquittal
victim's right
Section 372 CrPC
criminal procedure
transfer of proceedings

Judgment

                                                          902-ALP-6-2017 (CR).docx


           IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                    CIRCUIT BENCH AT KOLHAPUR

                    CRIMINAL APPELLATE JURISDICTION

            APPLN FOR LEAVE TO APPEAL (PVT.) NO. 6 OF 2017

K.G.N. Baba Traders                                  … Applicant
Through Its Prop. Kasam Siddiqui Kacchi
Through Its POA Afiq Ballechand Shikalgaar
                    Versus
M/s. Rucha Founders                                  … Respondents
Through Its Prop. Astik Vitthalrao Patil & Anr.



                                 ——————
None for the Applicant.
Mrs. S.N. Deshmukh, A.P.P. for the Respondent-State.
                                 ——————

                    Coram :     RANJITSINHA RAJA BHONSALE, J.

                    Date    :   27th March 2026.

PER COURT :

1.    Heard learned A.P.P. for Respondent No.2 - State.

2.    Record indicates that the instant application has been preferred

seeking leave to file appeal against the order of acquittal from offence under

Section 138 of the Negotiable Instruments Act, 1881.

3.    In view of the decision of the Hon’ble Supreme Court in M/s.

Celestium Financial Vs. Ganasekaran ETC., reported in [(2025) SCC OnLine

SC 1320], it is clear that as per Section 372 of the Code of Criminal Procedure,


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                                                               902-ALP-6-2017 (CR).docx


the victim has a right to prefer an appeal against the order passed by the

Court acquitting the accused or convicting accused for lesser offence or

imposing inadequate compensation, and that such an appeal shall lie to the

Court to which the appeal ordinarily lies against the order of conviction.

4.       In view of thereof, the following order is passed :

                                       ORDER

 (i)        The present proceeding be transferred to the concerned District
            and Sessions Court. Learned Registrar (Judicial) of this Court to
            take further necessary action for transferring this matter to the
            concerned District and Sessions Court, immediately.
 (ii)       The concerned Court to whom this matter will be assigned, after
            registering it, shall issue notice to the concerned parties, and
            thereafter, proceed further with the matter in accordance with
            law.
 (iii)      The concerned Court shall treat this matter as appeal under
            proviso to Section 372 of the Code of Criminal Procedure as per
            the observations of the Hon’ble Supreme Court in the case of
            M/s. Celestium Financial (supra).
 (iv)       Learned District and Sessions Judge to exclude the period spent
            in prosecuting instant leave application before this Court while
            calculating the period of limitation.
 (v)        The Application therefore stands disposed of.



                                  [ RANJITSINHA RAJA BHONSALE, J. ]




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