M/S Sree Bhavatharini Chits Pvt. Ltd., Vs Subramani — Company and Corporate | Karnataka HC (2025)

M/S Sree Bhavatharini Chits Pvt. Ltd., Vs Subramani — Company and Corporate | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Appeal disposed of with directions: Registry to transfer the entire record (including requisitioned trial-court copies) to the concerned Principal District & Sessions Judge for assignment to the competent Appellate Court; transferee court to issue notice to both parties and proceed in accordance with law; pending applications (including condonation of delay) also transferred for consideration; appellate court requested to dispose expeditiously; appellant permitted to amend the cause-title; no observations on merits, all rights and contentions left open.

Issue for consideration

Whether the complainant under Section 138 of the Negotiable Instruments Act, being a victim, is entitled to prefer an appeal against acquittal under the proviso to Section 372 Cr.PC (now the proviso to Section 413 BNSS, 2023) rather than under Section 378(4) Cr.PC. +1 more

Court's answer

The appellant, being the complainant under Section 138 of the Negotiable Instruments Act, 1881 and therefore a victim, is entitled to file the appeal against the acquittal before the Sessions Court under the proviso to Section 372 Cr.PC (now the proviso to Section 413 BNSS, 2023).

Ratio / Principle

The present appeal, though filed under Section 378 Cr.PC, shall be transferred to the concerned appellate Court of Sessions and considered as an appeal under the proviso to Section 413 of BNSS, 2023 (formerly Section 372 of Cr.PC), and numbered accordingly.

Key takeaways

This Court has made no observations on the merits of the case; all rights and contentions of the parties remain open to be agitated before the transferee court.ratio¶51

Detailed headnote1 paragraphs

High Court of Karnataka at Bengaluru (G Basavaraja, J.), CRL.A No. 1205 of 2024, decided 08.12.2025 — Complainant-company under Section 138 of the Negotiable Instruments Act, 1881 appealed (u/S 378 Cr.PC) against its acquittal dated 04.04.2024 in C.C.No.33972/2022 (XXVII Addl. Chief Metropolitan Magistrate, Bengaluru). Relying on Celestium Financial v. A Gnanasekaran (2025 SCC ONLINE SC 1320) and cognate rulings of the Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Delhi and Karnataka High Courts, the Court held that the complainant, being a victim, is entitled to appeal against acquittal before the Sessions Court under the proviso to Section 372 Cr.PC, now the proviso to Section 413 BNSS 2023, without recourse to Section 378(4) Cr.PC; and, so as not to deprive the parties of the High Court as an available forum for further challenge, directed transfer of the appeal to the concerned Sessions Court for consideration and renumbering under the proviso to Section 413 BNSS 2023, with ancillary directions on record transfer, notice, pending applications, expeditious disposal and cause-title amendment, expressly making no observations on the merits and leaving all rights and contentions open. Appeal stood disposed of.

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 8^TH DAY OF DECEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE G BASAVARAJA

CRIMINAL APPEAL NO. 1205 OF 2024 (A)

BETWEEN:

M/S SREE BHAVATHARINI CHITS PVT. LTD., (COMPANY LIMITED BY SHARES, REGISTERED UNDER THE COMPANIES ACT, 1956) HAVING ITS REGISTERED OFFICE AT, NO.66/3, 10^TH CROSS, 9^TH MAIN ROAD, JAYANAGAR 3^RD BLOCK, BANGALORE - 560 011. REPRESENTED BY ITS DIRECTOR, SRI. RAJANNA SURESH.

…APPELLANT

(BY SRI. ANKITH S REDDY., ADVOCATE)

AND:

Digitally signed by LAKSHMINARAYAN N Location: HIGH COURT OF KARNATAKA

SUBRAMANI SON OF LATE GOPAL, AGED ABOUT 50 YEARS, R/NO.2-1, VIJAYLAKSHMI ROAD, KUPPAM, ANDHRA PRADESH - 517 425.

…RESPONDENT

THIS CRL.A IS FILED U/S 378 CR.PC PRAYING TO SET ASIDE THE ORDER OF ACQUITTAL IN C.C.NO.33972/2022 ON THE FILE OF XXVII ADDL. CHIEF METROPOLITAN MAGISTRATE, BENGALURU AS PER ANNEXURE-B AND REMAND THE CASE FOR FRESH DISPOSAL IN ACCORDANCE WITH LAW, IN THE

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LIGHT OF THE OBSERVATIONS OF THIS HON'BLE COURT AND ETC

THIS APPEAL, COMING ON FOR ORDERS THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE G BASAVARAJA

ORAL JUDGMENT

This appeal is filed by the appellant/complainant being aggrieved by the judgment of acquittal dated 04.04.2024 passed in C.C.NO.33972/2022 by the XXVII Additional Chief Metropolitan Magistrate, Bengaluru (for short "the trial Court").

The Hon'ble Supreme Court in the case of CELESTIUM FINANCIAL v. A GNANASEKARAN ETC. reported in 2025 SCC ONLINE SC 1320, at paragraph 10 of the judgment, has observed as under:

" 10. As already noted, the proviso to Section 372 of CrPC was inserted in the statue book only with effect from 31.12.2009. The object and reason for such insertion must be realised and must be given its full effect to by a court. In view of the aforesaid discussion, we hold that the victim of an offence has the right to prefer an appeal under the proviso to Section 372 of CrPC, irrespective of whether he is a complainant or not. Even if the victim of an offence is a complainant, he can

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still proceed under the proviso to Section 372 and need not advert to sub-section (4) of Section 378 of Cr.PC. "

In the light of the Hon'ble Supreme Court's recent clarification of the legal position, it is now evident that the appellant, being the complainant under Section 138 of Negotiable Instruments Act, 1881, is also entitled to file an appeal against the judgment of acquittal passed by the trial Court before the Sessions Court, since he is considered to be a victim. If this Court were to proceed to hear and decide the appeal at this stage, it could deprive the parties of an available forum, i.e. this Court, for further challenge.

Similar view has been taken by the High Court of Andhra Pradesh in CHARBEL INDIA V. STATE OF ANDHRA PRADESH reported in 2025 SCC ONLINE AP 2815; by the High Court of Madhya Pradesh in MANORAMA KANKANE v. NARENDRA KUMAR SHUKLA rendered in Criminal Appeal No.5910 of 2025 decided on 03^rd July, 2025; and in the case of M/S. LATA KISAN SEWA KENDRA v. PRITAM SINGH reported in 2025 SCC ONLINE MP 4818; and in SMT. URMIT MADRAH v. SAMARPAN JAIN rendered Criminal Appeal No. 11872 of 2022 decided on 21^st July, 2025; the decision of High Court of

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Chattisgarh in NEELAM SAHU v. NARADNAGWANSHI rendered

in ACQA No. 340 of 2018 decided on 16^th July, 2025; and in SMT. KIRTI KURIAN v. AJAY SINGH rendered in ACQA No. 198 of 2019 decided on 16^th July, 2025; the judgment of this Court in the case of SIDAGONDAPPA v. SHAFI AHAMAD rendered in CRL.A. No. 20021/2018 decided on 31^st July, 2025 and in SRI T.H. LENKAPPA v. SRI SANJAY AND ANOTHER rendered in Criminal Appeal No.146 of 2015 decided on 23^rd July, 2025; the decision of High Court of Delhi in the case of D.K. ASSOCIATES v. SHANKAR AND ANOTHER rendered in Criminal Appeal No.694 of 2016 decided on 13^th November, 2025 and the decision rendered by the Co-ordinate Bench of this Court in the case of M/S. ANANYA ENTERPRISES v. SRI G.S. GOPALAKRISHNA rendered in Criminal Appeal No.100171 of 2016 decided on 24^th November, 2025. An overall assessment of the aforestated decisions reveals that the decision of the Hon'ble Supreme Court in the case of CELESTIUM FINANCIAL (supra) has been relied upon by this Court, as well as other High Courts across the country.

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Considering the above, it is deemed fit that the present appeal be transferred to the concerned appellate Court of Sessions and be considered as an appeal under the proviso to Section 413 of BNSS, 2023 (formerly Section 372 of Cr.PC) and numbered accordingly. Accordingly, I proceed to pass the following:

O R D E R

i. Registry is directed to transfer the entire record of the case, including the requisitioned copies of the trial court Records, to the concerned Principal District & Sessions Judge, who may assign it to the concerned Appellate Court having the jurisdiction and for which purpose, it would be listed before the Principal District & Sessions Judge;

ii. The concerned transferee court is directed to issue Court notice to both the parties to appear before the concerned Court, and the concerned Court, thereafter, shall proceed with the case in accordance with law;

iii. In case there are applications pending for condonation of delay or any other pending applications, the same also be transferred to

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be considered by the learned Judge of transferee Court, in accordance with law;

iv. Considering the matter has been pending for considerable time, the Appellate Court is requested to make an endeavour to dispose of the matter as expeditiously as possible;

v. The appellant is permitted to carry out necessary amendment in the cause-title and also the provisions thereof;

vi. It is made clear that this Court has not made any observations as to the merits of the case and all rights and contentions of the parties are left open to be agitated before the Court concerned.

In the light of the above observation and

directions, appeal stands disposed of.

Sd/-

(G BASAVARAJA) JUDGE

DHA

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