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Criminal · Reportable judgment

M/s Celestium Financial vs A. Gnanasekaran Etc.

Court
Supreme Court of India
Date
8 April 2025
Case No.
Criminal Appeal No(s). 1868-70 of 2025
Result
Allowed
Bench
B.V. Nagarathna, Satish Chandra Sharma
Citation
[2025] 4 S.C.R. 2612 : 2025 INSC 804
Acts & Sections
Constitution CrPC Negotiable Instruments Act, 1881 CrPC
Supreme Court Reports [2025] 4 S.C.R. 2612 : 2025 INSC 804
Issue for consideration
Issue arose as regards the maintainability of an appeal under proviso to s.372 CrPC against order of acquittal in a case instituted upon a private complaint u/s.138 Negotiable Instruments Act, by treating the complainant in such proceeding as a victim within the meaning ascribed to the term u/s.2(wa) CrPC.
Headnote

Code of Criminal Procedure, 1973 – ss.2(wa), 372, 378, 200 – Negotiable Instruments Act, 1881 – s.138 – Respondents issued cheques to appellant against the loan facility availed from the appellant – Cheques dishonoured with the endorsement “funds insufficient” on presentation – Statutory demand notices by appellant – Non-compliance by respondents – Criminal complaints by appellant against the respondents, however, the magistrate acquitted them – Appellant filed petitions before the High Court seeking special leave to appeal u/s.378(4) which were dismissed – Correctness:

Read the full headnote (4 more paragraphs)

Held: Victim of an offence has the right to prefer an appeal inter alia, against an order of acquittal in terms of the proviso to s.372, irrespective of whether he is a complainant or not – Such victim need not advert to sub-section (4) of s.378, which mandates obtaining special leave to appeal from the High Court – Thus, the person who is a complainant u/s.200 who complains about the offence committed by a person who is charged as an accused u/s.138 of the 1881 Act, thus has the right to prefer an appeal as a victim under the proviso to s.372 – Right to prefer an appeal is a statutory right – Right of a victim of an offence to prefer an appeal cannot be equated with the right of the State or the complainant to prefer an appeal – Thus, the statutory rigours for filing of an appeal by the State or by complainant against order of acquittal cannot be read into the proviso to s.372 so as to restrict the right of a victim to file an appeal on the grounds mentioned therein, when none exists – Thus, if a victim who is a complainant, proceeds u/s.378, the necessity of seeking special leave to appeal would arise but if a victim whether he is a complainant or not, files an appeal in terms of proviso to s.372, then the mandate of seeking special leave to appeal would not arise – In the context of offences under NI Act, particularly u/s.138, the complainant is clearly the aggrieved party who has suffered economic loss and injury due to the default in payment by accused owing to the dishonour of cheque which is deemed to be an offence under that provision – It would be just, reasonable and in consonance with the spirit of the CrPC to hold that the complainant under NI Act also qualifies as a victim within the meaning of s.2(wa) – Consequently, such complainant ought to be extended the benefit of the proviso to s.372, thereby enabling him to maintain an appeal against an order of acquittal in his own right without having to seek special leave u/s.378(4) – Symmetrical to a victim of an offence, a victim of a deemed offence u/s.138 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 – Thus, u/s.138 both the complainant as well as the victim are one and the same person – Impugned order set aside – Negotiable Instruments Act, 1881 – ss.139-143. [Paras 7.7, 7.8-11]

Code of Criminal Procedure, 1973 – ss.372, 378 – Appeal to be preferred by the complainant – Complainant also the victim, or complainant only an informant – Difference:

Held: s.378 clearly indicate that in case the complainant intends to file an appeal against the order of acquittal, his right is circumscribed by certain conditions precedent – If the complainant is not a victim and the case is instituted upon a complaint, then sub-section (4) requires that the complainant must seek special leave to appeal from an order of acquittal from the High Court – However, if the complainant is also a victim, he could proceed under the proviso to s.372, in which case the rigour of sub-section (4) of s.378, which mandates obtaining special leave to appeal, would not arise at all, as he can prefer an appeal as a victim and as a matter of right – Thus, if a victim who is a complainant, proceeds u/s.378, the necessity of seeking special leave to appeal would arise but if a victim whether he is a complainant or not, files an appeal in terms of proviso to s.372, then the mandate of seeking special leave to appeal would not arise. [Para 7.11]

Words and phrases – Victim – Meaning and scope – Discussed. [Para 6.2-6.7.2]

Keywords: Dishonour of cheque · Funds insufficient · Victim · Complainant · Statutory demand notice · Justice Malimath Committee · Report on ‘Reforms of Criminal Justice System’ · Victims right to appeal · 154th Report of the Law Commission · Committee on the Draft National Policy on Criminal Justice · Professor Madhava Menon Committee Report · Victim-oriented criminal justice · 221st Report of Law Commission of India · Couched in negative language · Loss · Injury · Criminologist B. Mendelsohn

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Nidhi Jain. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Nagarathna, J. Leave granted. 2. These appeals have been preferred by the appellant against the common judgment dated 12.06.2024 passed by the High Court of Judicature at Madras in Crl. O.P. Nos.929, 931 and 1034 of 2024 in Crl. A. SR. Nos.1282, 1300 and 1321 of 2024. 2.1 The central issue arising for adjudication in the instant appeals is, whether an appeal would be maintainable under the proviso to Section 372 of the Code of Criminal Procedure, 1973 (for short, “CrPC”) against an order of acquittal passed in a case instituted upon a private complaint under Section 138 of the Neg
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