M/S Vani Feeds Vs M/S Mahaluxmi Poultry Farm and… — Cheque Dishonour | Punjab & Haryana HC (2025)

M/S Vani Feeds Vs M/S Mahaluxmi Poultry Farm and… — Cheque Dishonour | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Leave-to-appeal application disposed of with directions that: (i) the appeal be treated as instituted under the proviso to Section 372 of the Cr.P.C.; (ii) the learned Sessions Judge concerned assign it to an appropriate Court for disposal on merits in accordance with law; (iii) the Appellate Court decide the appeal expeditiously without being impeded by any delay in filing; and (iv) the Registry transmit the order along with the complete paper-book and return the Trial Court record, if received, to the learned Sessions Judge.

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 raised is no longer res integra: in view of the Hon'ble Supreme Court's authoritative pronouncement in M/s Celestium Financial (2025 INSC 804), 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 the requirement of special leave under Section 378(4).

Ratio / Principle

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

Key takeaways

The present application was 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 it to an appropriate Court for disposal on merits, in accordance with law.ratio¶17
The concerned Appellate Court shall 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¶18

Detailed headnote1 paragraphs

Punjab & Haryana High Court at Chandigarh (Manjari Nehru Kaul, J.), CRM-A-366-2023 (O&M), decided 23.07.2025 — Leave to appeal against acquittal of the accused in a complaint case under Section 138 of the Negotiable Instruments Act, 1881. Held: the question whether a complainant can maintain an appeal against acquittal under the proviso to Section 372 of the Cr.P.C. is no longer res integra, having been authoritatively settled by the Hon'ble Supreme Court in M/s Celestium Financial v. A. Gnanasekaran, 2025 INSC 804 : 2025(3) RCR (Criminal) 208, wherein a complainant in a Section 138 NI Act prosecution was held to be a 'victim' under Section 2(wa) of the Cr.P.C., entitled to appeal against acquittal under the proviso to Section 372 of the Cr.P.C. without special leave under Section 378(4). Guided also by this Court's earlier view in Rajat Deep v. Prince (CRM-A-1320MA-2016, decided 21.07.2025), the Court directed that the appeal be treated as instituted under the proviso to Section 372 of the Cr.P.C., that the learned Sessions Judge assign it to an appropriate Court for decision 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. Application disposed of.

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

CRM-A-366-2023 (O&M) Date of decision: 23.07.2025

M/s Vani F e eds

.... Applicant

Versus

M/s Mahal u xmi Poultry Farm and another

.... Respondents

CORAM: HON’BLE MRS. JUSTICE MANJARI NEHRU KAUL

Present: Mr. Abhinav Aggarwal, Advo c ate, 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. 2. 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 2025.07.24 08:36 I attest to the accuracy and integrity of this document

CRM-A-366-2023 (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 2025.07.24 08:36 I attest to the accuracy and integrity of this document

CRM-A-366-2023 (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 2025.07.24 08:36 I attest to the accuracy and integrity of this document