M/S Mfar Constructions Pvt. Ltd. Vs M/S Canopy Estates… — Cheque Dishonour | Karnataka HC (2026)

M/S Mfar Constructions Pvt. Ltd. Vs M/S Canopy Estates… — Cheque Dishonour | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Entire record directed to be transferred 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 for condonation of delay or otherwise also transferred; expeditious disposal requested; appellant permitted to amend the cause-title and provisions thereof; no observations on merits, all rights and contentions left open.

Issue for consideration

Whether the criminal appeal filed by the complainant under Section 378(4) Cr.P.C. against dismissal of his complaint for non-prosecution should be heard by the High Court or proceeds before the Sessions Court appellate forum.

Court's answer

In the light of the Supreme Court's recent clarification in Celestium Financial, the appellant, being the complainant under Section 138 of the Negotiable Instruments Act, 1881, is entitled to file an appeal before the Sessions Court.

Ratio / Principle

Proceeding to hear and decide the appeal in the High Court could deprive the parties of an available forum for further challenge; accordingly, the present appeal is transferred to the concerned appellate Court of Sessions.

Detailed headnote1 paragraphs

Criminal Appeal No. 846 of 2022 (under Section 378(4) Cr.P.C.) filed by the complainant, M/s MFAR Constructions Pvt Ltd, against dismissal for non-prosecution and default (order dt. 18.10.2021, XXXVI Addl. Chief Metropolitan Magistrate, Bengaluru) of its Section 138, Negotiable Instruments Act, 1881 complaint in C.C.No.7674/2018 against M/s Canopy Estates Pvt Ltd and its directors: relying on Celestium Financial v. A Gnanasekaran, 2025 SCC OnLine SC 1320 (a victim-complainant may appeal under the proviso to Section 372 Cr.P.C.), the Karnataka High Court held the complainant entitled to prefer the appeal before the Sessions Court and, so as not to deprive the parties of a further challenge forum, disposed of the appeal by directing transfer of the entire record to the Principal District & Sessions Judge for assignment to the jurisdictional Sessions appellate court; transferee court to issue notice; pending delay-condonation and other applications also transferred; expeditious disposal requested; liberty to amend cause-title; expressly no observations on merits and all rights and contentions left open.

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16^TH DAY OF FEBRUARY, 2026 BEFORE

THE HON'BLE MR. JUSTICE G BASAVARAJA CRIMINAL APPEAL NO. 846 OF 2022 (A)

BETWEEN:

M/S MFAR CONSTRUCTIONS PVT LTD HAVING REGISTERED OFFICE AT NO.8 AND 8A, AVS COMPOUND 80 FEET ROAD, 4TH BLOCK KORAMANGALA BANGALORE-560034

REPRESENTED BY ITS SR VP TECHNICAL BRIG R N TRIVEDI SON OF LATE SHRI DEI DUTT TEWARY AGED ABOUT 71 YEARS

…APPELLANT

(BY SRI RAVI CHANDAN R K, ADVOCATE)

AND:

M/S CANOPY ESTATES PRIVATE LIMITED Digitally HAVING ITS REGISTERED OFFICE AT NO.969 signed by R MANJUNATHA 5^TH A CROSS, HRBR, 1ST BLOCK Location: KALYAN NAGAR HIGH COURT BANGALORE-560043 OF REPRESENTED BY ITS MANAGING DIRECTOR KARNATAKA MR SYED YASIR RIZVI

MR SYED YASIR RIZVI MANAGING DIRECTOR M/S CANOPY ESTATES PRIVATE LIMITED HAVING OFFICE AT NO.969 5^TH A CROSS, HRBR I BLOCK KALYAN NAGAR BANGALORE-560 043

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MR ZAHIRUDDIN AHMED DIRECTOR M/S CANOPY ESTATES PRIVATE LIMITED HAVING OFFICE AT NO.969 5^TH A CROSS, HRBR I BLOCK KALYAN NAGAR BANGALORE-560043.

…RESPONDENTS

THIS CRL.A. IS FILED UNDER SECTION 378(4) CR.P.C PRAYING TO SET ASIDE THE ORDERS OF DISMISSAL FOR NON PROSECUTION AND DEFAULT DATED 18.10.2021 PASSED BY THE XXXVI ADDITIONAL CHIEF METROPOLITAN MAGISTRATE AT BENGALURU.

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 dismissal of complaint vide order dated 18.10.2021 passed in C.C.No.7674/2018

by the XXXVI Additional Chief Metropolitan Magistrate At Bengaluru (for short "the trial Court")

The Hon'ble Supreme Court in the case of CELESTIUM FINANCIAL v. A GNANASEKARAN ETC.

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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 Cr.P.C. was inserted in the statute 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. "

3. 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 before the Sessions Court. If this Court were to proceed to hear and decide the appeal at this

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stage, it could deprive the parties of an available forum,

i.e. this Court, for further challenge.

Considering the above, it is deemed fit that the

present appeal be transferred to the concerned appellate Court of Sessions. Accordingly, I pass the following:

O R D E R

i. Registry is directed to transfer the entire record of the case 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

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to 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

MR, List No.: 1 Sl No.: 5