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Bombay High Court

M/S. NIVEDITA MERCANTILE AND FINANCING LIMITEDversusM/S. CHADALAVADA INFRATECH LIMITED

Decided
Disposal
Disposed Off

Holding

The court held that the applicant is entitled to withdraw the application and file an appeal under Section 372 CrPC, and may avail the pendency period of the withdrawn application for condonation of delay.

Summary

M/s. Nivedita Mercantile and Financing Ltd., the original complainant in a complaint under Section 138 of the Negotiable Instruments Act, sought leave to appeal the acquittal of respondents under Section 372 of the Criminal Procedure Code. The applicant relied on a recent Supreme Court decision (Celestium Financial v. Gnanasekaran) to argue that the appeal could be filed and that the pendency of the present application could be counted for condoning any delay. The High Court examined whether the applicant was entitled to withdraw the pending application and obtain liberty to file the Section 372 appeal in the Sessions Court. It held that, in line with the Apex Court’s principles, the applicant may withdraw the application and file the appeal, and may also benefit from the pendency period for condonation of delay. Accordingly, the court ordered the application withdrawn, granted liberty to file the appeal within eight weeks, and allowed the applicant to retrieve a certified copy of the impugned order for that purpose.

Issues considered

  • Whether the complainant can file an appeal under Section 372 CrPC after an acquittal in a Section 138 NI Act case.
  • Whether the High Court may grant leave to withdraw the pending application and permit filing of the appeal.
  • Whether the period of pendency of the withdrawn application can be counted towards condonation of delay in filing the appeal.

Legislation cited

Subjects

  • Section 372 CrPC
  • appeal
  • condonation of delay
  • Negotiable Instruments Act
  • acquittal
  • criminal procedure

Judgment

                                                                      14-IA-995-2020-ALPST-133-2020.doc



                                     IN THE HIGH COURT OF JUDICATURE AT BOMBAY
         rrpillai                          CRIMINAL APPELLATE JURISDICTION
                                       CRIMINAL APPLICATION (ST) NO. 133 OF 2020
                                                         WITH
                                          INTERIM APPLICATION NO. 995 OF 2020


                                M/s. Nivedita Mercantile and                      ….Applicant
                                Financing Limited
                                      vs.
                                M/s. Chadalavada Infratech Limited                 … Respondents
                                and Others

                                Mr. Yashpal Thakur for the Applicant.
                                Mr. D. J. Haldankar, APP for the respondent – State.

                                                               CORAM : GAURI GODSE, J.

                                                             DATED : 27th FEBRUARY 2026

                                ORDER:

                                1.   This application is filed by the original complainant under

                                Section 378(4) of the Criminal Procedure Code, seeking leave

                                to file appeal. The applicant is the complainant in the complaint

                                filed under Section 138 of The Negotiable Instruments Act,

                                1881. By the impugned order respondent nos. 2 and 7 are
             Digitally signed
RAJESHWARI   by RAJESHWARI
             RAMESH PILLAI
                                acquitted.
RAMESH       Date:
PILLAI       2026.03.04
             11:44:25 +0530

                                2.   Learned counsel for the applicant submits that in view of

                                the recent decision of the Hon’ble Apex Court in the case of
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                                       14-IA-995-2020-ALPST-133-2020.doc



M/s. Celestium Financial Versus. A. Gnanasekaran 1, the

applicant would be entitled to file an appeal under Section 372

of Code of Criminal Procedure. He therefore seeks leave to

withdraw this application with liberty to file an appeal under

Section 372 of Cr.P.C. in the Sessions Court. Learned counsel

for the applicant submits that the applicant be granted benefit

of the period of pendency of this application for seeking

condonation of delay.

3.    In view of the legal principles settled in the decision of the

Hon’ble Apex Court, the applicant is granted leave to withdraw

this application with liberty to file an appeal under Section 372

of Cr.P.C. before the Sessions Court.

4.    This application is filed on 4th March 2020. There is a

delay in filing the application. Hence, separate Interim

Application No. 995 of 2020 is filed. Hence, it is clarified that if

an appeal under Section 372 of Cr.P.C. is filed within eight

weeks from today, the applicant shall be entitled to seek benefit

of the period of pendency of this application for seeking

condonation of delay in filing the appeal before the Sessions

Court.
1 2025 SCC OnLine SC 1320
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                                     14-IA-995-2020-ALPST-133-2020.doc



5.    Learned advocate for the applicant is permitted to take

back certified copy of the impugned order for filing the appeal

in the Sessions Courts, on submitting a photocopy of the

impugned order. Registry shall verify the photocopy and return

the certified copy to the learned advocate for the applicant.

6.    The Application is disposed of as withdrawn subject to

the aforesaid liberty.

                                             (GAURI GODSE, J.)




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