ZALA MAHENDRASINH KESHARISINHversusSTATE OF GUJARAT
- Disposal
- 97-DISPOSED AS TRANSFER TO DISTRICT/SESSION COURT N.I. ACT.
- Bench
- HEMANT M PRACHCHHAK
Holding
The appeal must be transferred to the Sessions Court and treated as an appeal under the proviso to Section 372 CrPC/Section 413 BNSS.
Summary
The original complainant under Section 138 of the Negotiable Instruments Act filed a criminal complaint, and the trial court acquitted the accused. The complainant appealed the acquittal under Section 378(4) CrPC and Section 419 of the Bharatiya Nagrik Suraksha Sanhita. The High Court examined the Supreme Court’s decision in Celestium Financial v. A. Gnanasekaran, which held that a complainant in a Section 138 case is the victim and may appeal under the proviso to Section 372 CrPC (or Section 413 BNSS) without resorting to Section 378. Relying on that precedent and a Gujarat High Court decision, the Court ordered that the appeal be transferred to the Sessions Court and treated as an appeal under the proviso to Section 372/Section 413. No merits of the case were considered, and the matter was directed to be disposed of expeditiously by the lower appellate court.
Issues considered
- The original complainant/victim under Section 138 NI Act has a right to prefer an appeal against an acquittal under the proviso to Section 372 CrPC/Section 413 BNSS.
- Whether the appeal should be heard by the High Court or transferred to the Sessions Court as an appeal under the said proviso.
Legislation cited
- Code of Criminal Procedure, 1973s. 372, s. 378(4)
- Negotiable Instruments Act, 1881s. 138
Subjects
Judgment
R/CR.A/1049/2022 ORDER DATED: 12/06/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL APPEAL (AGAINST ACQUITTAL) NO. 1049 of 2022
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ZALA MAHENDRASINH KESHARISINH
Versus
STATE OF GUJARAT & ANR.
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Appearance:
DR. HARDIK K RAVAL(6366) for the Appellant(s) No. 1
BAILABLE WARRANT SERVED for the Opponent(s)/Respondent(s) No. 2
MS JIRGA JHAVERI ADDITIONAL PUBLIC PROSECUTOR for the
Opponent(s)/Respondent(s) No. 1
RULE SERVED for the Opponent(s)/Respondent(s) No. 2
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CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
Date : 12/06/2026
ORAL ORDER
1. The present appeal is filed by the appellant – original
complainant under Section 378 (4) of the Criminal Procedure
Code, 1973 (hereinafter referred to as ‘the Code’ for short) /
under Section 419 of the Bharatiya Nagrik Suraksha Sanhita,
2023 (hereinafter referred to as ‘BNSS’ for short) against the
judgment and order dated 31.03.2022 passed by the learned
Judicial Magistrate First Class, Talod (hereinafter be referred
to as “the Trial Court), whereby the learned trial Court had
acquitted the respondent - accused for the offence under
Section 138 of the Negotiable Instruments Act, 1881
(hereinafter referred to as the ‘NI Act’ for short).
2. Heard learned counsel appearing for the respective
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R/CR.A/1049/2022 ORDER DATED: 12/06/2026
parties.
3. Learned Additional Public Prosecutor for respondent –
State of Gujarat has submitted that this matter is required to
be transferred in view of the recent decision of the Hon’ble
Supreme Court in the case of Celestium Financial Vs.
A.Gnanasekaran Etc. reported in 2025 (3) GLH 747
wherein the Hon’ble Supreme Court has held that the original
complainant to be considered as a victim of the offence under
Section 138 of the Act and, therefore, the complainant has
right to file an appeal under Section 372 of the Code before
the lower Appellate Court i.e. immediate Sessions Court
before the District and the judgment dated 22.12.2025
rendered in Criminal Misc. Application No.12753 of 2019
with Criminal Misc. Application No. 12908 of 2019.
4. Before entering into the merits of this case, this Court
deems it proper to refer to the decision rendered by this Court
in the case of Shivsinh Ganpatsinh Solanki Vs. State of
Gujarat being Criminal Miscellaneous Application Nos. 12753
of 2019 with 12908 of 2019 and the decision of the Hon'ble
Supreme Court in the case of Celestium Financial Vs. A.
Gyanasekaran (supra) wherein the Hon’ble Supreme Court
has observed and held that the complainant, in a complaint
under Section 138 of the N.I. Act, considered to be a victim,
has a specific right to file an appeal against the order of
acquittal under Section 372 of the Code / Section 413 of the
BNSS to the Court which is immediately superior in hierarchy
i.e. the Sessions Court.
5. Learned Additional Public Prosecutor has pointed out
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R/CR.A/1049/2022 ORDER DATED: 12/06/2026
that the matter in the case of Celestium Financial Vs. A.
Gyanasekaran (supra) is now pending at large before the
Hon’ble Supreme Court in Special Leave to Appeal (Crl.) No.
12350/2024 wherein the Hon’ble Supreme Court has observed
that it is desirable that a larger Bench gives an authoritative
pronouncement on this issue as it has far-reaching
consequences. Therefore, the matter is to be decided subject
to the final outcome of the reference Court.
6. In the case of Celestium Financial Vs. A.
Gyanasekaran (supra), the Hon’ble Supreme Court has held
and observed in paras – 7.8, 7.9 and 7.12 as under:-
“7.8 In the case of an offence alleged against an accused
under Section 138 of the Act, we are of the view that the
complainant is indeed the victim owing to the alleged
dishonour of a cheque. In the circumstances, the
complainant can proceed as per the proviso to Section 372
of the CrPC and he may exercise such an option and he need
not then elect to proceed under Section 378 of the CrPC.
7.9 In this context, we wish to state that the proviso to
Section 372 does not make a distinction between an accused
who is charged of an offence under the penal law or a
person who is deemed to have committed an offence under
Section 138 of the Act. Symmetrical to a victim of an
offence, a victim of a deemed offence under Section 138 of
the Act also has the right to prefer an appeal against any
order passed by the court acquitting the accused or
convicting for a lesser offence or imposing an inadequate
compensation. When viewed from the perspective of an
offence under any penal law or a deemed offence under
Section 138 of the Act, the right to file an appeal is not
circumscribed by any condition as such, so long as the
appeal can be premised in accordance with proviso to
Section 372 which is the right to file an appeal by a victim,
provided the circumstances which enable such a victim to
file an appeal are met. The complainant under Section 138 is
the victim who must also have the right to prefer an appeal
under the said provision. Merely because the proceeding
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R/CR.A/1049/2022 ORDER DATED: 12/06/2026
under Section 138 of the Act commences with the filing of a
complaint under Section 200 of the CrPC by a complainant,
he does not cease to be a victim inasmuch as it is only a
victim of a dishonour of cheque who can file a complaint.
Thus, under Section 138 of the Act both the complainant as
well as the victim are one and the same person.
7.12 The reasons for the above distinction are not far to see
and can be elaborated as follows:
Firstly, the victim of a crime must have an absolute right to
prefer an appeal which cannot be circumscribed by any
condition precedent. In the instant case, a victim under
Section 138 of the Act, i.e., a payee or the holder of a
cheque is a person who has suffered the impact of the
offence committed by a person who is charged of the
offence, namely, the accused, whose cheque has been
dishonoured.
Secondly, the right of a victim of a crime must be placed on
par with the right of an accused who has suffered a
conviction, who, as a matter of right can prefer an appeal
under Section 374 of the CrPC. A person convicted of a
crime has the right to prefer an appeal under Section 374 as
a matter of right and not being subjected to any conditions.
Similarly, a victim of a crime, whatever be the nature of the
crime, unconditionally must have a right to prefer an appeal.
Thirdly, it is for this reason that the Parliament thought it fit
to insert the proviso to sub-section 372 without mandating
any condition precedent to be fulfilled by the victim of an
offence, which expression also includes the legal
representatives of a deceased victim who can prefer an
appeal. On the contrary, as against an order of acquittal, the
State, through the Public Prosecutor can prefer an appeal
even if the complainant does not prefer such an appeal,
though of course such an appeal is with the leave of the
court. However, it is not always necessary for the State or a
complainant to prefer an appeal. But when it comes to a
victim’s right to prefer an appeal, the insistence on seeking
special leave to appeal from the High Court under Section
378(4) of the CrPC would be contrary to what has been
intended by the Parliament by insertion of the proviso to
Section 372 of the CrPC.
Fourthly, the Parliament has not amended Section 378 to
circumscribe the victim’s right to prefer an appeal just as it
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R/CR.A/1049/2022 ORDER DATED: 12/06/2026
has with regard to a complainant or the State filing an
appeal. On the other hand, the Parliament has inserted the
proviso to Section 372 so as to envisage a superior right for
the victim of an offence to prefer an appeal on the grounds
mentioned therein as compared to a complainant.
Fifthly, the involvement of the State in respect of an offence
under Section 138 of the Act is conspicuous by its absence.
This is because the complaint filed under that provision is in
the nature of a private complaint as per Section 200 of the
CrPC and Section 143 of the Act by an express intention
incorporates the provisions of the CrPC in the matter of trial
of such a deemed offence tried as a criminal offence.
Therefore, the complainant, who is the victim of a dishonour
of cheque must be construed to be victim in terms of the
proviso to Section 372 read with the definition of victim
under Section 2(wa) of the CrPC.”
7. In view of the said submissions and the decision of the
Hon’ble Supreme Court in the case of Celestium Financial
Vs. A. Gyanasekaran (supra) and decision of this Court in
the case of Thakar Hariprasad Dalsukhram Vs. State of
Gujarat and another reported in 2026 SCC OnLine Guj
569, 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
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.
8. Considering that the matter has been pending for
considerable time, the learned lower Appellate Court is
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R/CR.A/1049/2022 ORDER DATED: 12/06/2026
required to make endeavour to dispose of the matter as
expeditiously as possible. It is clarified that this Court has not
gone into the merits of the matter at this stage.
(HEMANT M. PRACHCHHAK,J)
SURESH SOLANKI
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: SURESHKUMAR MOTIBHAI SOLANKI(HC00208), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 12/06/2026 18:14:12
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