Arun Malhotra Vs Krishan Jalan — Cheque Dishonour | Delhi HC (2025)

Arun Malhotra Vs Krishan Jalan — Cheque Dishonour | Delhi HC (2025)

What the court decided

AI extract

Outcome

Leave and liberty to withdraw the leave to appeal petitions and to file appeal(s) under the proviso to Section 372 of CrPC against the judgments of acquittal dated 27.02.2025; pending applications disposed with the petitions; no comment on merits, rights and contentions left open.

Issue for consideration

Whether the complainant-petitioner should pursue these leave to appeals under Section 419(4)/528 BNSS (Section 378(4) CrPC route), or instead withdraw and file an appeal under the proviso to Section 372 CrPC as a 'victim', in view of the Supreme Court's decision in Celestium Financial.

Court's answer

Leave and liberty granted: the Petitioner is permitted to file an appeal under the proviso to Section 372 of CrPC against the judgments of acquittal dated 27 February 2025, in light of the Supreme Court's decision in Celestium Financial.

Ratio / Principle

Both leave to appeals (CRL.L.P. 250/2025 and CRL.L.P. 253/2025) are disposed of along with the pending applications, if any.

Key takeaways

The Court expressly clarified that it has not commented on the merits of the case and all rights and contentions of the parties are left open.obiter¶24

Detailed headnote1 paragraphs

High Court of Delhi at New Delhi (Sanjeev Narula, J.), order dated 20.08.2025 in CRL.L.P. 250/2025 and CRL.L.P. 253/2025: Arun Malhotra, petitioner/complainant against respondent Krishan Jalan, had sought leave to appeal under Section 419(4) read with Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (corresponding to Sections 378(4) and 482 CrPC) against judgments of acquittal dated 27.02.2025 passed by JMFC (NI Act)-08, South, Saket District Court, Delhi in Complaint Case Nos. 2957/2018 and 28950/2019 for offences under Section 138 of the NI Act. Invoking the Supreme Court's decision in Celestium Financial v. A. Gnanasekaran Etc. (2025 SCC OnLine SC 1320) — to the effect that a Section 138 NI Act complainant is a 'victim' under Section 2(wa) CrPC and may proceed under the proviso to Section 372 CrPC without invoking Section 378(4) CrPC — counsel sought leave to withdraw the petitions. The Court granted leave and liberty to file appeal(s) under the proviso to Section 372 CrPC against the acquittal judgments, and disposed of both leave to appeals with pending applications, expressly leaving the merits untouched and all rights and contentions of the parties open.

$~35 & 36

IN THE HIGH COURT OF DELHI AT NEW DELHI

- CRL.L.P. 250/2025

ARUN MALHOTRA .....Petitioner

Through: Ms. Simran Khurana, Advocate.

versus

KRISHAN JALAN .....Respondent Through: None.

- CRL.L.P. 253/2025

ARUN MALHOTRA .....Petitioner

Through: Ms. Simran Khurana, Advocate.

versus

KRISHAN JALAN .....Respondent Through: None. CORAM: HON'BLE MR. JUSTICE SANJEEV NARULA

O R D E R % 20.08.2025

The Petitioner, who is also the Complainant, has filed the instant leave to appeal under Section 419(4) read with 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023¹ (corresponding to Sections 378(4) and 482 of the Code of Criminal Procedure² ) assailing the judgments of acquittal dated 27^th February, 2025, passed by the Judicial Magistrate First Class (NI Act)-08, South, Saket District Court, Delhi in Complaint Case No. 2957/2018 and Complaint Case No. 28950/2019 pertaining to an offence under Section 138

1 “BNSS”

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/08/2025 at 11:52:09

of the Negotiable Instruments Act, 1881³ .

In a recent judgement of Celestium Financial v. A. Gnanasekaran Etc .⁴ , the Supreme Court has held that in cases involving an offence under Section 138 of the NI Act, the complainant qualifies as a “victim” as defined under Section 2(wa) of CrPC. Therefore, the Complainant may proceed under the proviso to Section 372 of CrPC and need not invoke Section 378(4) of CrPC.

In light of the afore-noted judgment, counsel for the Petitioner seeks leave to withdraw the present petitions, with liberty to file an appeal under the proviso to Section 372 of CrPC.

Considering the above, the following directions are issued:

4.1. Leave and liberty granted. The Petitioner is permitted to file an appeal under the proviso to Section 372 of CrPC against the judgment of acquittal dated 27^th February, 2025, in light of the decision of the Supreme Court in Celestium Financial .

In view of the above, the present leave to appeals are disposed of along with the pending applications, if any.

It is made clear that the Court has not commented on the merits of the case. All rights and contentions of the parties are left open.

SANJEEV NARULA, J

AUGUST 20, 2025/ d.negi

2 “CrPC”

3 “NI Act”

4 2025 SCC OnLine SC 1320.

This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/08/2025 at 11:52:09