Please Log in / Register to access the full text of this judgment and the entire database
(2026) Law Today Live Doc. Id. 21391
Decided on: 12.02.2026
For Petitioner(s):
Mr. B. Badrinath, AOR
***
Cheque dishonour -- Complainant's right to appeal against acquittal without special leave under Section 378(4) of Cr.P.C. -- Divergent views -- Issue referred for authoritative pronouncement by larger Bench.
***
Code of Criminal Procedure, 1973 (2 of 1974), Sections 372 and 378(4) -- Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Dishonour of cheque -- Appeal against acquittal -- Complainant -- Proviso to Section 372 -- In Celestium Financial's case, 2025 INSC 804 = (2025) Law Today Live Doc. Id. 20136, it was held that complainant in a case under Section 138 of Negotiable Instruments Act is a 'victim' who would be entitled to file an appeal under proviso to Section 372 without seeking special leave under Section 378(4) -- Present Bench unable to agree with such interpretation -- Earlier decisions holding to the contrary not considered -- Issue having far-reaching consequences -- Matter may be placed before Chief Justice for appropriate directions for authoritative pronouncement by larger Bench.
(Para 1-4)
Cases referred:
1. Celestium Financial vs. A. Gnanasekaran, 2025 INSC 804 = (2025) Law Today Live Doc. Id. 20136.
2. Satya Pal Singh vs. State of M.P., 2015 15 SCC 613.
3. Subhash Chand vs. State (Delhi Administration), (2013) 1 SCC 802.
ORDER
Reliance is placed by the learned counsel for the petitioner on the recent judgment of this Court in “Celestium Financial vs. A. Gnanasekaran1 [12025 INSC 804]”= (2025) Law Today Live Doc. Id. 20136. By way of the said judgment, a co-ordinate Bench of this Court held that a complainant in a case arising under Section 138 of the Negotiable Instruments Act, 1881, is a ‘victim’ who would be entitled to file an appeal under the proviso to Section 372 of the Code of Criminal Procedure, 19732 [2For short “the Code”]. It was further held that such appeal could be filed against an order of acquittal under the proviso to Section 372 of the Code without seeking special leave to appeal under Section 378(4) of the Code.
However, this judgment did not take into account the earlier decisions of this Court in Satya Pal Singh vs. State of M.P.3 [32015 15 SCC 613] and Subhash Chand vs. State (Delhi Administration)4 [4(2013) 1 SCC 802], which have a bearing on both the aspects that were considered in the aforestated judgment, as they held to the contrary.
Further, we are also unable to agree with the interpretation placed by the co-ordinate Bench upon the scheme of the Code in the context of Sections 372 and 378 thereof. Perusal of Section 378(1), (2) and (3) of the Code reflects that the proviso to Section 372 thereof was carved out, keeping in mind the distinction between the prosecuting agency and the victim. We may also notice that Section 378(4) and (5) were preserved in the Code, which make it incumbent upon the complainant, who initiated the prosecution on a complaint which resulted in acquittal, to obtain leave before an appeal is filed before the High Court.
In such circumstances, we are of the opinion that it is desirable that a larger Bench gives an authoritative pronouncement on this issue as it has far-reaching consequences. The matter may be placed before the Hon’ble The Chief Justice for appropriate directions in that regard.
Order accordingly.
********