M/S. Pranava Souharda Sahakari Ltd. Vs Mr. P. M. Ahammad — Cheque Dishonour | Karnataka HC (2026)

M/S. Pranava Souharda Sahakari Ltd. Vs Mr. P. M. Ahammad — Cheque Dishonour | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Appeal disposed of by transfer: Registry directed to transfer the entire record (including requisitioned trial-court copies) to the concerned Principal District & Sessions Judge for assignment to the jurisdictional appellate Court; transferee court to issue court notice to both parties and proceed in accordance with law; pending applications (including condonation of delay) also transferred; expeditious disposal requested; appellant permitted to amend the cause-title and provisions; appeal to be treated and numbered as an appeal under the proviso to Section 413 BNSS, 2023 (formerly proviso to Section 372 Cr.P.C.); no observations on merits, rights and contentions left open.

Issue for consideration

Whether the complainant in a cheque-dishonour case under Section 138 of the Negotiable Instruments Act, 1881, being the victim, is entitled to appeal against the judgment of acquittal before the Sessions Court under the proviso to Section 372 Cr.P.C. (proviso to Section 413 BNSS, 2023) rather than under Section 378(4) Cr.P.C. +1 more

Court's answer

The appellant, being the complainant under Section 138 of the Negotiable Instruments Act, 1881, is considered a victim and is entitled to file an appeal against the judgment of acquittal before the Sessions Court under the proviso to Section 372 Cr.P.C., as recently clarified by the Supreme Court in Celestium Financial.

Ratio / Principle

The present appeal is to be transferred to the concerned appellate Court of Sessions, to be considered and numbered as an appeal under the proviso to Section 413 of BNSS, 2023 (formerly Section 372 of Cr.P.C.).

Key takeaways

This Court has made no observations on the merits of the case; all rights and contentions of the parties are left open to be agitated before the Court concerned.obiter¶55

Detailed headnote1 paragraphs

Victim-complainant's appeal against acquittal — forum and numbering. Appellant society, complainant in C.C.No.8/2021 (JMFC, V Court, Mangaluru), aggrieved by the acquittal of the respondent dated 08.12.2022 in a Section 138 NI Act matter, had filed CRL.A. No. 405 of 2023 under Section 378(4) Cr.P.C. Relying on Celestium Financial v. A Gnanasekaran (2025 SCC OnLine SC 1320, para 10) — that a victim may appeal under the proviso to Section 372 Cr.P.C. irrespective of being the complainant — and on concurring decisions of the Andhra Pradesh, Madhya Pradesh, Chhattisgarh and Delhi High Courts and coordinate benches of the Karnataka High Court, HELD: the complainant under Section 138 NI Act is a 'victim' entitled to appeal against acquittal before the Sessions Court under the proviso to Section 372 Cr.P.C.; the appeal was disposed of by directing transfer of the entire record to the Principal District & Sessions Judge for assignment to the appellate Court, to be considered and numbered as an appeal under the proviso to Section 413 BNSS, 2023 (formerly proviso to Section 372 Cr.P.C.), with court notice to the parties, transfer of pending applications (including condonation of delay), a request for expeditious disposal, and liberty to amend the cause-title; no observations were made on the merits and all rights and contentions were left open. (G Basavaraja J., 12.01.2026)

1 - NC: 2026:KHC:1644 CRL.A No. 405 of 2023

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12^TH DAY OF JANUARY, 2026

BEFORE

THE HON'BLE MR. JUSTICE G BASAVARAJA CRIMINAL APPEAL NO. 405 OF 2023 (A)

BETWEEN:

M/S. PRANAVA SOUHARDA SAHAKARI LTD (REGN. NO. 3364/2014-15), REPRESENTED BY THE PRESIDENT, MR. G. R. PRASAD, AGED 57 YEARS, S/O. RAMACHANDRA GOWDA, OFFICE AT DOOR NO. 3/39, 3-3/11, 1^ST FLOOR, ‘JAYARAM PRASAD’, AIRPORT ROAD, YEYYADI KONCHADI POST, MANGALURU-575 008. …APPELLANT

(BY SRI. AKASH B SHETTY, ADVOCATE)

Digitally signed by VIJAYALAKSHMI B N Location: HIGH COURT OF KARNATAKA

AND:

MR. P. M. AHAMMAD AGED 32 YEARS, S/O. P. M. MOHAMMAD, RESIDING AT D.NO. #2-222, 2^ND BLOCK, NEAR SHAMSUDDIN CIRCLE, KATIPALLA, MANGALORE-575 030. …RESPONDENT

(BY SRI. VENKATESH SOMAREDDI, ADVOCATE)

2 -

NC: 2026:KHC:1644 CRL.A No. 405 of 2023

HC-KAR

THIS CRL.A. IS FILED U/S.378(4) OF CR.P.C PRAYING TO CALL FOR THE RECORDS OF C.C.NO.8/2021, ON THE FILE OF HON’BLE JUDICIAL MAGISTRATE OF FIRST CLASS (V COURT), MANGALORE AND FURTHER BE PLEASED TO SET ASIDE THE JUDGMENT AND ORDER DATED 08.12.2022 IN C.C.NO.8/2021 PASSED BY THE HON’BLE JUDICIAL MAGISTRATE OF FIRST CALLS (V COURT) AND ETC.

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

CORAM: HON'BLE MR. JUSTICE G BASAVARAJA

ORAL JUDGMENT

appellant/complainant being aggrieved by the judgment of acquittal dated 08.12.2022 passed in C.C.No.8/2021 by

the Judicial Magistrate of First Class (V Court), Mangaluru, D.K. (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:

3 - NC: 2026:KHC:1644 CRL.A No. 405 of 2023

HC-KAR

" 10. As already noted, the proviso to Section 372 of Cr.P.C. 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 Cr. P.C., irrespective of whether he is a complainant or not. Even if the victim of an offence is a complainant, he can still proceed under the proviso to Section 372 and need not advert to sub-section (4) of Section 378 of Cr. P.C. "

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

4 -

NC: 2026:KHC:1644 CRL.A No. 405 of 2023

HC-KAR

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 LATE 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 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

5 - NC: 2026:KHC:1644 CRL.A No. 405 of 2023

HC-KAR

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 Coordinate 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.

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

6 -

NC: 2026:KHC:1644 CRL.A No. 405 of 2023

HC-KAR

Section 372 of Cr.P.C) 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 be considered by the learned Judge of transferee Court, in accordance with law;

7 -

NC: 2026:KHC:1644 CRL.A No. 405 of 2023

HC-KAR

iv. Considering the matter has been pending for considerable time, the Appellate Court is requested to make an endeavor 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

GSR List No.: 1 Sl No.: 23