Cheque-dishonour acquittal appeal transferred to Sessions Court under victim-appeal route, subject to Supreme Court ruling on the issue

The original complainant appealed under Section 378(4) of the Code of Criminal Procedure, 1973 (“CrPC”) against the respondent-accused’s acquittal by the 4th Additional Chief Judicial Magistrate, Surat, dated 24 October 2016

The High Court considered whether, in light of Celestium Financial v. A. Gnanasekaran and the related Gujarat High Court decisions, a complainant in a prosecution under Section 138 of the Negotiable Instruments Act, 1881 (“NI Act”) should pursue an appeal as a victim before the Sessions Court under the proviso to Section 372 CrPC

Whether a complainant in a Section 138 NI Act prosecution may be treated as a victim entitled to appeal against acquittal under the proviso to Section 372 CrPC before the immediately superior court, namely the Sessions Court

Whether the appeal filed under Section 378(4) CrPC should be transferred to the Sessions Court and treated there as an appeal under the proviso to Section 372 CrPC, subject to the final outcome of the pending reference

Section 378(4) CrPC provides for an appeal by a complainant against acquittal, while the proviso to Section 372 CrPC gives a victim a right to appeal against acquittal to the court to which an appeal ordinarily lies from the trial court’s order.

The High Court referred to Celestium Financial v. A. Gnanasekaran (reported at 2025 (3) GLH 747), which held that a complainant in a Section 138 NI Act case is the victim of the alleged cheque dishonour and may appeal under the proviso to Section 372 CrPC before the immediately superior court, without needing to proceed under Section 378 CrPC.

Applying the cited decisions, the High Court treated the complainant’s appeal against acquittal as one that should be pursued before the Sessions Court under the victim-appeal route in Section 372 CrPC, rather than determined by the High Court under Section 378(4) CrPC

Because the Supreme Court’s consideration of the issue remained pending, the High Court directed the transfer subject to the final outcome of that reference; it did not examine the acquittal on its merits

The Sessions Court was directed to treat and number it as an appeal under the proviso to Section 372 CrPC or Section 413 BNSS, issue notice to the parties, and endeavour to decide it expeditiously.

The High Court expressly left the merits undecided