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Section 138 NI Act Complainant Is a ‘Victim’, Gujarat High Court Transfers Acquittal Appeal to Sessions Court

Section 138 NI Act Complainant Is a ‘Victim’, Gujarat High Court Transfers Acquittal Appeal to Sessions Court

Madhu Enterprise v. Balabhai Shah & Anr. [Decided on 06-07-2026]

Gujarat High Court

In a couple of appeals filed before the Gujarat High Court by the original complainant under Section 378 of the Code of Criminal Procedure, 1973 (CrPC) against a judgment and order dated 12-11-2014 by the Additional Chief Metropolitan Magistrate, whereby the respondents accused for offences under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) were acquitted, a Single Judge Bench of Justice Hemant M. Prachchhak transferred the appeals to the Sessions Court being the lower appellate court and directed for it to be treated as an appeal under Section 372 of CrPC.

The respondents submitted that both matters were required to be transferred in view of the Supreme Court’s decision in Celestium Financial v. A. Gnanasekaran Etc 2025 (3) GLH 747, wherein it was held that the original complainant is to be considered a victim of offence under Section 138 and that the complainant had a right to file an appeal under Section 372 of CrPC before the lower appellate court.

Referring to Celestium Financial (supra) as well as a decision of this court in Thakar Hariprasad Dalsukhram v. State of Gujarat 2026 SCC OnLine Guj 569, the Court directed the Registry to transfer the appeals to the Sessions Court concerned. It was also directed that after the transfer, it must be treated as an appeal under the proviso to Section 372 of CrPC. The Court noted that the matters had been pending for a considerable time and ordered the appellate court to dispose of the matters as expeditiously as possible.

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Appearances

For Appellant – Mr. Dipan Desai

For Respondents – Mr. Nirav C Sanghavi, Ms. Jigra Jhaveri (APP)

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Madhu Enterprise v. Balabhai Shah & Anr.

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