Paras Nath Kushwaha Vs Vishal Gautam — Cheque Dishonour | Punjab & Haryana HC (2025)

Paras Nath Kushwaha Vs Vishal Gautam — Cheque Dishonour | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Application for leave to appeal disposed of with directions: the appeal is to be treated as instituted under the proviso to Section 372 of the Cr.P.C., assigned by the learned Sessions Judge to an appropriate Court for disposal on merits, and decided expeditiously without being impeded by any delay in filing.

Issue for consideration

Whether an appeal against an order of acquittal passed in a complaint case under Section 138 of the NI Act can be entertained under the proviso to Section 372 of the Cr.P.C. at the instance of the complainant?

Court's answer

The issue is no longer res integra: adopting the Supreme Court's authoritative ruling in M/s Celestium Financial, a complainant in a prosecution under Section 138 of the NI Act qualifies as a 'victim' under Section 2(wa) of the Cr.P.C. and is entitled to appeal against acquittal under the proviso to Section 372 of the Cr.P.C. without special leave under Section 378(4) of the Cr.P.C.

Ratio / Principle

Adopting a pragmatic and justice-oriented approach, this Court directs that the present appeal be treated as one authoritatively instituted under the proviso to Section 372 of the Cr.P.C.

Key takeaways

The learned Sessions Judge concerned shall treat the present appeal as an appeal filed under the proviso to Section 372 of the Cr.P.C. and assign the same to an appropriate Court for disposal on merits, in accordance with law; in consequence the present application is disposed of.ratio¶¶18
The concerned Appellate Court shall proceed to decide the appeal expeditiously, without being impeded by any delay in filing the appeal, in view of the legal position now clarified by the Hon'ble Apex Court.ratio¶¶19

Detailed headnote1 paragraphs

Punjab and Haryana High Court at Chandigarh (Manjari Nehru Kaul, J., oral), CRM-A-244-2019 (O&M), decided 23.07.2025 — The applicant-complainant sought leave to appeal against the judgment of acquittal passed in his complaint case under Section 138 of the Negotiable Instruments Act, 1881, whereby his complaint was dismissed and the accused acquitted. The limited question was whether an appeal against such an acquittal can be entertained under the proviso to Section 372 of the Cr.P.C. at the instance of the complainant. Held: the issue is no longer res integra; per the Supreme Court's authoritative ruling in M/s Celestium Financial Vs. A. Gnanasekaran, 2025 INSC 804 : 2025(3) RCR (Criminal) 208, a complainant in a Section 138 NI Act prosecution qualifies as a 'victim' under Section 2(wa) of the Cr.P.C. and is entitled to appeal against acquittal under the proviso to Section 372 Cr.P.C. without special leave under Section 378(4) Cr.P.C. Following that ruling and this Court's own view in Rajat Deep Versus Prince, CRM-A-1320MA-2016 (disposed off on 21.07.2025), the application was disposed of with directions that the appeal be treated as instituted under the proviso to Section 372 Cr.P.C., that the learned Sessions Judge assign it to an appropriate Court for disposal on merits in accordance with law, and that the Appellate Court decide it expeditiously without being impeded by delay in filing; the Registry was directed to transmit the order with the complete paper-book and return the Trial Court record to the learned Sessions Judge.

235. IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CRM-A-244-2019 (O&M) Date of decision: 23.07.2025

Paras Nath K ushwaha

.... Applicant

Versus

Vishal Gau t am

.... Respondent

CORAM: HON’BLE MRS. JUSTICE MANJARI NEHRU KAUL

Present: Mr. Sandeep Verma, Advocate, for the applicant.

MANJARI NEHRU KAUL, J. (ORAL)

The applicant has filed the pre s ent application seeking grant o f leave to ap p eal against the judgment of acq u ittal passed in a complaint cas e instituted u nder Section 138 of the Ne g otiable Instruments Act, 1881 (hereinafter referred to as, ‘NI Act’), whe r eby the complaint filed by th e applicant w a s dismissed and the accused w a s acquitted.

The limited question arising f or consideration in the presen t proceeding s is whether an appeal against a n order of acquittal passed in a complaint c ase under Section 138 of the N I Act can be entertained unde r the proviso to Section 372 of the Cr.P.C. at t he instance of the complainant? 3. The issue is no longer re s integra . In ‘M/s Celestium Financial Vs. A. Gnanasekaran Etc. 2025 INSC 804: 2025(3) RCR (Criminal) 208’ , the Hon'ble Supreme C o urt authoritatively held that a complainan t in a prosecution under Section 138 of the NI Act, qualifies as a

SANJEEV KUMAR 2025.07.25 10:18 I attest to the accuracy and integrity of this document

CRM-A-244-2019 (O&M) - 2 -

‘victim’ under Section 2(wa) of the Cr.P.C., being the person who suffers financial loss due to the dishonour of a cheque. Consequently, such a complainant is entitled to pursue an appeal against acquittal under the proviso to Section 372 of the Cr.P.C., without the requirement of seeking special leave under Section 378(4) of the Cr.P.C.

Adopting a pragmatic and justice oriented approach and guided by the principle that procedural rule must serve and not obstruct the course of justice, this Court deems it appropriate to direct that the present appeal be treated as one authoritatively instituted under the proviso to Section 372 of the Cr.P.C.

In view of the authoritative pronouncement in M/s Celestium Financial's case (supra) and the view taken by this Court also in subsequent cases including in Rajat Deep Versus Prince, CRM-A-1320MA-2016 , disposed off on 21.07.2025, the present application is disposed of with a direction that the learned Sessions Judge concerned shall treat the present appeal as an appeal filed under the proviso to Section 372 of the Cr.P.C. and assign the same to an appropriate Court for disposal on merits, in accordance with law.

The concerned Appellate Court shall proceed to decide the appeal expeditiously, without being impeded by any delay in filing the appeal, in view of the legal position now clarified by the Hon'ble Apex Court.

SANJEEV KUMAR 2025.07.25 10:18 I attest to the accuracy and integrity of this document

CRM-A-244-2019 (O&M) - 3 -

The Registry is directed to transmit this order along with copy of the complete paper-book and return the Trial Court record, if received, to the learned Sessions Judge.

Disposed of accordingly.

(MANJARI NEHRU KAUL) JUDGE July 23, 2025 sanjeev Whether speaking/reasoned: Yes/No Whether reportable: Yes/No

SANJEEV KUMAR 2025.07.25 10:18 I attest to the accuracy and integrity of this document