Friday, 6 June 2025

Supreme Court: Complainant In S.138 NI Act Case Can File Appeal Against Acquittal As 'Victim' Under S.372 Proviso CrPC

A person who is a complainant under Section 200 of the CrPC who complains about the offence committed by a person who is charged as an accused under Section 138 of the Act, thus has the right to prefer an appeal as a victim under the proviso to  Section 372 of the CrPC.

10. As already noted, the proviso to Section 372 of the CrPC 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 the CrPC, 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 the CrPC.

REPORTABLE

IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NOS. OF 2025

M/s. CELESTIUM FINANCIAL  Vs  A. GNANASEKARAN ETC. 

Citation:  2025 INSC 804.

Dated: APRIL 08, 2025.

Leave granted.

2. These appeals have been preferred by the appellant against

the common judgment dated 12.06.2024 passed by the High Court

of Judicature at Madras in Crl. O.P. Nos.929, 931 and 1034 of

2024 in Crl. A. SR. Nos.1282, 1300 and 1321 of 2024.

2.1 The central issue arising for adjudication in the instant

appeals is, whether an appeal would be maintainable under the

proviso to Section 372 of the Code of Criminal Procedure, 1973 (for

short, “CrPC”) against an order of acquittal passed in a case

instituted upon a private complaint under Section 138 of the

Negotiable Instruments Act, 1881 (for short, “the Act”), by treating

the complainant in such a proceeding as a victim within the

meaning ascribed to the term under Section 2(wa) of the CrPC.

Factual Background:

3. Briefly stated, the facts of the case according to the appellant

are as under:

3.1 The appellant herein is the complainant being a registered

partnership firm engaged in the business of finance. The appellant

had extended financial assistance to the respondents over a period

of time. It is the case of the appellant that respondent No.1 was

the principal borrower and in order to avail further credit, he

obtained additional loans through respondent Nos.2 and 3, who

acted at his behest. Respondent No.1 is stated to be carrying on a

catering business under the name and style of “R.R. Caterers”.

3.2 Respondent No.1 had on earlier occasions availed several

loans from the appellant. As on 27.04.2015, an outstanding sum

of Rs. 16,00,000/- stood due from him. Seeking further financial

accommodation, respondent No.1 along with his spouse entered

into a sale agreement dated 15.05.2015 with one Mr. S. Babu, an

employee of the appellant. Pursuant thereto, a further sum of Rs.

20,00,000/- was sanctioned to him carrying interest at 18% per

annum.


3.3 Thereafter, on 13.05.2016, respondent No.2 availed a loan of

Rs. 15,00,000/- from the appellant at an interest of 20% per

annum, repayable in twelve equal monthly instalments of Rs.

1,25,000/-. Respondent No.2 made partial repayments through

cash deposits dated 09.06.2016, 30.09.2016, and 15.07.2017.

Subsequently, on 30.11.2016, respondent No.3 availed a loan of

Rs. 12,00,000/- from the appellant, carrying interest at the rate of

24% per annum. The loan was repayable over a period of twelve

months with EMIs fixed at Rs. 1,00,000/- each.

3.4 Thereafter, on 31.05.2017, respondent No.1 availed a further

loan facility from the appellant to the tune of Rs. 21,00,000/-,

carrying interest at 24% per annum. The interest component,

amounting to Rs. 2,94,000/-, was deducted upfront, and the net

sum of Rs. 18,06,000/- was disbursed to respondent No.1. The

loan was repayable over a period of seven months in equated

monthly instalments of Rs. 3,00,000/- each.

3.5 A few months later, on 17.07.2017, respondent No.1 secured

an additional loan from the appellant in a sum of Rs. 15,00,000/-,

with interest agreed at 22.5% per annum. From the sanctioned

amount, Rs. 1,42,500/- was appropriated towards interest and the

net principal of Rs. 13,57,500/- was determined. On the specific

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request of respondent No.1, one EMI of Rs. 3,00,000/- pertaining

to the earlier loan was deducted and the effective disbursal was

Rs. 10,57,500/-. The loan was structured to be repaid in five

monthly instalments of Rs. 3,00,000/- each.

3.6 Subsequently, on 11.09.2017, respondent No.1 once again

sought financial assistance and was sanctioned a further sum of

Rs. 25,00,000/- carrying interest at the rate of 18% per annum.

After deducting interest to an extent of Rs. 3,75,000/-, the net

amount available stood at Rs. 21,25,000/-. At the instance of

respondent No.1, two EMIs of Rs. 3,00,000/- each relating to

earlier borrowings were adjusted and a final amount of

Rs.15,25,000/- was disbursed. The loan tenure was fixed at ten

months with equated monthly instalments of Rs. 2,50,000/-.

3.7 In partial discharge of his liability, respondent No.2 issued a

cheque bearing No.145325 dated 29.10.2018 for a sum of Rs.

6,25,000/- in favour of the appellant. However, upon presentation

of the said cheque on 30.10.2018, it was dishonoured with the

endorsement “Funds Insufficient”. Similarly, respondent No.3

issued a cheque bearing no. 491078 dated 24.10.2018 for an

amount of Rs. 10,00,000/- and when the same was presented on

30.10.2018, it was returned unpaid on 31.10.2018 for identical

reasons.

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3.8 Thereafter, the appellant issued separate statutory notices

dated 12.11.2018 under Section 138 of the Act, calling upon

respondent Nos.2 and 3 to honour the respective amounts. Upon

their failure to comply, the appellant instituted criminal

complaints before the Fast Track Court at Alandur, which came to

be registered as C.C. No. 417 of 2018 and C.C. No. 418 of 2018

respectively.

3.9 In discharge of his liability, respondent No.1 issued three

cheques bearing nos. 000150, 000191, and 000192, all dated

28.03.2019, in favour of the appellant. The said cheques were

presented for encashment on 21.06.2019 but were returned

dishonoured on 24.06.2019 with the endorsement “Funds

Insufficient”. Consequently, a statutory demand notice dated

08.07.2019 was issued by the appellant to respondent No.1 under

Section 138 of the Act. Upon his failure to make good the payment,

the appellant instituted a criminal complaint before the Fast Track

Court at Alandur which was registered as C.C. No. 285 of 2019.

3.10 For the sake of clarity and convenience, the particulars of

the cheques issued by the respondents said to be towards

discharge of their respective liabilities are as follows:

6

Sl.

No

Cheque

No.

Issued

by:

Amount

(Rs.)

Date of

Issuance of

cheques

Date of

Dishonour

of cheques

Case No.

1 145325 Respt.

No.2

Rs. 6,25,000 29.10.2018 31.10.2018 C.C. No. 417

of 2018

2 491078 Respt.

No.3

Rs.10,00,000 24.10.2018 31.10.2018 C.C. No. 418

of 2018

3 000150

Respt.

No.1

Rs. 9,00,000 28.03.2019 24.06.2019 C.C. No. 285

of 2019

4 000191 Rs. 12,00,000

5 000192 Rs. 25,00,000

3.11 By separate judgments dated 07.11.2023, the learned

Judicial Magistrate acquitted respondent Nos.1 to 3 for the offence

punishable under Section 138 of the Act in terms of Section 255(1)

of the CrPC. The acquittal was premised on the finding that the

appellant had failed to discharge the burden of proving the

existence of a legally enforceable debt or liability and further,

respondent Nos.1 to 3 succeeded in rebutting the statutory

presumption available to the complainant under Section 139 of the

said Act.

3.12 Being aggrieved by the judgments dated 07.11.2023, the

appellant preferred petitions before the High Court seeking special

leave to appeal under Section 378(4) of the CrPC in Criminal

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Appeal SR Nos.1282, 1300 and 1321 of 2024 by assailing the

judgments rendered in C.C. Nos. 417 of 2018, 418 of 2018 and

285 of 2019, dated 07.11.2023.

3.13 By the common impugned order dated 12.06.2024, the

High Court dismissed the petitions filed by the appellant seeking

leave to appeal. The High Court observed that the grant of leave

under Section 378(4) of the CrPC is not a mere formality but a

substantive safeguard designed to protect the rights of persons

who, having been acquitted of criminal charges, ought not to be

subjected to further protracted litigation. It was further held that

the grant of leave is contingent upon the petitioner before the

Appellate Court to establish a prima facie case that warrants

interference. Referring to the present case, the High Court held

that the appellant could not demonstrate that the conclusions

arrived at by the learned Magistrate are so perverse or manifestly

erroneous as to result in a miscarriage of justice. In the absence of

such compelling grounds, the High Court declined to exercise its

discretionary jurisdiction to grant leave to appeal. It is in these

circumstances that the appellant has approached this Court by

way of the present appeal assailing the legality and correctness of

the impugned order of the High Court dated 12.06.2024.

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Submissions:

4. We have heard learned counsel for the appellant and learned

senior counsel for the respondent at length. We have also perused

the material on record and the judgments cited at the Bar.

4.1 Learned counsel for the appellant contended that the High

Court was not right in refusing to grant leave under Section 378(4)

of the CrPC on the ground that the appellant had not demonstrated

that the conclusions arrived at by the Magistrate were erroneous

or contrary to law. The High Court ought to have exercised its

discretion by granting leave to the appellant to prosecute his

appeal inasmuch as the impugned order has now made the

appellant remediless.

4.2 Alternatively, it was submitted that the appellant could also

be construed to be a victim of the offence committed by the

accused under Section 138 of the Act. If that is so, then as a victim

the appellant has a right to assail the judgment of acquittal as per

the proviso to Section 372 of the CrPC. In such an event, the need

for obtaining leave to file an appeal would not arise at all. In this

regard, proviso to Section 372 was contrasted with sub-section (4)

of Section 378 of the CrPC. It was contended that under proviso to

Section 372 which has been in force with effect from 31.12.2009,

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as it was added by way of an amendment, the victim of an offence

has a right to prefer an appeal against any order passed by the

Court acquitting the accused or convicting for a lesser offence or

imposing inadequate compensation. Such an appeal would lie to

the Court to which an appeal ordinarily lies against the order of

conviction of such Court. The right to file an appeal by a victim of

an offence under the provision to Section 372 CrPC is not

circumscribed by the necessity of obtaining leave to file an appeal.

It was contended that under sub-section (4) of Section 378 which

deals with an appeal against a judgment of acquittal in any case

instituted upon a complaint then on an application made to the

High Court by the complainant, it is only when special leave to

appeal is granted by the High Court from the order of acquittal,

that the complainant may present such an appeal to the High

Court. In the present case, the complaint under Section 138 of the

Act was no doubt filed by the appellant herein but not merely as a

complainant but as a victim of the offence under Section 138 of

the Act. It was submitted that in all cases, the victim may not be

the complainant and vice-a-versa but if the victim is also the

complainant, then the victim could always proceed under the

proviso to Section 372 of the CrPC rather than as a complainant

under sub-section (4) of Section 378 of the CrPC. Therefore, in the

10

instant case, the appellant herein who ought to be considered as a

victim of the offence under Section 138 of the Act having been

committed by the accused has the right to prefer an appeal under

Section 372 of the CrPC. Therefore, it was wholly unnecessary for

the appellant to have obtained special leave to appeal from the

High Court. For this reason also, the impugned order may be setaside and the matter may be remanded to the High Court so that

the High Court would enable the appellant herein to file his appeal

before the competent appellate Court. Learned counsel for the

appellant, therefore, sought for setting-aside of the impugned

order.

4.3 Per contra, learned counsel for the respondent/accused

submitted that the order of the High Court was on merits and that

the appellant has not proved his case against the respondents

herein. Therefore, the learned Magistrate rightly acquitted the

respondents herein. The High Court was also justified in declining

to grant the special leave to appeal from the order of acquittal.

There is no merit in the submissions made by the learned counsel

for the appellant. The appellant is the complainant and, therefore,

he sought for special leave to appeal from the High Court against

the judgment of acquittal which has rightly been declined.

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Therefore, there is no merit in this appeal and, therefore, the same

may be dismissed.

5. In Mallikarjun Kodagali (dead) represented through

Legal representative vs. State of Karnataka, (2019) 2 SCC

752 (“Mallikarjun Kodagali”), there is a reference to four reports

that have dealt with the rights of victims of crime and the remedies

available to them. The same may be briefly discussed as under:

i. The first report is the 154th Report of the Law Commission of

India of August, 1996. The said Report touched upon, inter

alia, compensation to be paid to the victim of crime, their

rehabilitation, etc.

ii. In March 2003, Justice Malimath Committee submitted its

report on ‘Reforms of Criminal Justice System’. Paragraph

2.21 in the Chapter on Adversarial Rights under the subheading of ‘Victims Right to Appeal’, states as under:

"2.21. The victim or his representative who is a

party to the trial should have a right to prefer an

appeal against any adverse order passed by the

trial court. In such an appeal he could challenge

the acquittal, or conviction for a lesser offence or

inadequacy of sentence, or in regard to

compensation payable to the victim. The appellate

court should have the same powers as the trial

court in regard to assessment of evidence and

awarding of sentence."

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There is also discussion on other rights of victims under

the Chapter titled, ‘Justice to Victims’. In paragraph 6.(14)(v),

Justice Malimath Committee made the following

recommendations:

"6. (14)(v) The victim shall have a right to prefer an

appeal against any adverse order passed by the

court acquitting the accused, convicting for a

lesser offence, imposing inadequate sentence, or

granting inadequate compensation. Such appeal

shall lie to the court to which an appeal ordinarily

lies against the order of conviction of such court."

iii. In July 2007, a Report of the Committee on the Draft National

Policy on Criminal Justice was submitted which is also known

as ‘Professor Madhava Menon Committee Report’.

Observations with regard to providing victim-oriented

criminal justice and a balance between the constitutional

rights of an accused and victim of crime have been discussed.

One of the suggestions made is that the victim must be

impleaded in the trial proceedings so that such a party would

have right to file an appeal against an adverse order,

particularly an order of acquittal.

iv. In the 221st Report of the Law Commission of India submitted

in April, 2009, it has been noted that as the law then stood,

an aggrieved person could not file an appeal against an order

of acquittal. However, a revision petition could be filed. Noting

13

that the powers of a revisional court are limited and the

process involved is cumbersome, a recommendation was

made by the Law Commission that as against an order of

acquittal passed by a Magistrate, a victim should be entitled

to file an appeal before the revisional court. Similarly, in

complaint cases, the appeal should be provided to the

Sessions Court instead of the High Court. However, it was

suggested that the aggrieved person or complainant should

have the right to prefer an appeal with the leave of the

appellate court.

v. It was further recommended that Section 378 of the CrPC

requires an amendment with a view to enable filing of appeals

in complaint cases also in the Sessions Court, of course,

subject to the grant of special leave by it. Limited scope of

powers of a revisional court under Section 401 of the CrPC

was taken note of and it was suggested that there is a need

to amend the CrPC.

5.1 Taking note of the aforesaid reports an amendment was

brought to Section 372 of the CrPC with effect from 31.12.2009 by

adding a proviso thereto.

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5.2 The decisions of the Full Benches of the High Courts in the

matter of interpretation of the proviso to Section 372 of the CrPC

are highlighted by this Court in the case of Mallikarjun Kodagali.

There are also Division Bench decisions of the High Courts taking

different views.

Mallikarjun Kodagali:

5.3 This Court in Mallikarjun Kodagali, speaking through

Lokur, J. referred to the Declaration of the Basic Principles of

Justice for Victims of Crime and Abuse of Power adopted by the

General Assembly of the United Nations in the 96th Plenary Session

on 29.11.1985. It was observed in paragraphs 74, 75 & 76 as

under:

“74. Putting the Declaration to practice, it is quite

obvious that the victim of an offence is entitled to a

variety of rights. Access to mechanisms of justice

and redress through formal procedures as provided

for in national legislation, must include the right to

file an appeal against an order of acquittal in a case

such as the one that we are presently concerned

with. Considered in this light, there is no doubt that

the proviso to Section 372 CrPC must be given life,

to benefit the victim of an offence.

75. Under the circumstances, on the basis of the

plain language of the law and also as interpreted by

several High Courts and in addition the resolution

of the General Assembly of the United Nations, it is

quite clear to us that a victim as defined in Section

2(wa) CrPC would be entitled to file an appeal before

the Court to which an appeal ordinarily lies against

the order of conviction. …

15

76. … The language of the proviso to Section 372

CrPC is quite clear, particularly when it is

contrasted with the language of Section 378(4)

CrPC. The text of this provision is quite clear and it

is confined to an order of acquittal passed in a case

instituted upon a complaint. The word “complaint”

has been defined in Section 2(d) CrPC and refers to

any allegation made orally or in writing to a

Magistrate. This has nothing to do with the lodging

or the registration of an FIR, and therefore it is not

at all necessary to consider the effect of a victim

being the complainant as far as the proviso to

Section 372 CrPC is concerned.”

Consequently, the appeals in the said case were allowed and

the judgment and order of the High Court was set aside and the

matter was remanded to the High Court to hear and decide the

appeal against the judgment and order of acquittal once again.

5.4 In the said judgment, Deepak Gupta, J. was in complete

agreement with Lokur, J. on the fact that victims must be

permitted to access justice because it is sometimes found that the

investigating and prosecuting agency do not follow up cases with

zeal which is required and therefore proviso to Section 372 of the

CrPC must be given a meaning which is realistic, liberal,

progressive and beneficial to the victim of the offences. However,

Deepak Gupta, J. was of the opinion that one cannot ignore the

rights of the accused and the procedure prescribed by law. Hence,

he disagreed with Lokur, J.’s view that a victim can file an appeal

16

in the High Court without seeking leave to appeal in terms of

Section 378(3) of the CrPC.

5.5 The only difference of opinion was with regard to whether

the victim is required to seek leave of the High Court even in an

appeal filed in the High Court. While dealing with this issue, it was

observed by Deepak Gupta, J. that prior to the insertion of the

proviso to Section 372 of the CrPC, the victim had no right to file

an appeal unless he was also a complainant. This was because the

State would represent the victim of the crime. Therefore, the

question, whether the victim, while filing an appeal against the

acquittal of an accused under proviso to Section 372 of the CrPC

in the High Court, is required to obtain leave under Section 378(3)

of the CrPC was answered in the affirmative. In this regard,

reference was made to sub-section (4) of Section 378 which deals

with an appeal filed by the complainant. In case the order of

acquittal is passed in a case instituted upon a complaint, in such

a case, an appeal has to be filed in the High Court. Such an appeal

cannot be entertained unless the High Court grants special leave

to appeal from the order of acquittal. Sub-section (5) provides the

limitation period for filing the petition for grant of special leave to

appeal in terms of sub-section (4). Sub-section (6) lays down that

in case the application for special leave to appeal filed by a

complainant under sub-section (4) is refused, then, no appeal from

that order of acquittal shall lie under sub-section (1) or under subsection (2). Thus, in a complaint case, complainant can file an

appeal only by seeking special leave to appeal in case the appeal

lay before the High Court.

5.6 Dealing with the concept of leave to appeal, especially when

the appeals are filed in the High Court, it was observed by Deepak

Gupta, J. that the presumption of innocence of every accused is

fortified and strengthened when the said accused is acquitted by

the trial court. Therefore, the High Court, at the initial stage of

deciding whether the leave is to be granted or not, can go into the

merits of the case and only if there are arguable points involved,

would the High Court grant leave to appeal. This preliminary stage

is provided to prevent meritless appeals being filed before the High

Court and to ensure that innocent persons are not drawn to the

High Court at the appellate stage.

5.7 It was further noted that an appeal against an order of

acquittal passed by a Magistrate in respect of cognizable and nonbailable offences would lie to the Sessions Court and no leave to

appeal is required. However, an appeal with respect to offences

which are non-cognizable or bailable would lie to the High Court.

In such cases, leave to appeal is a prerequisite. The remaining

kinds of appeals are those appeals which lie to the High Court

against the judgments of the Sessions Court. These are serious

criminal matters relating to graver offences.

5.8 Even appeals against acquittals filed before the High Court

must be scrutinized with greater care. As opposed to Section 378(4)

of the CrPC, where a complainant would file an appeal against an

order of acquittal which would require special leave to appeal being

obtained, in the case of an appeal filed by a victim under proviso

to Section 372 of the CrPC, no such leave to appeal is required.

Then the question raised was, whether, a victim is to be placed on

a higher pedestal than the complainant, although in certain cases,

the victim and the complainant may be one and the same person.

Deepak Gupta, J. considered a situation where there are two

victims in a case and one of the victims files a complaint and sets

the wheels of justice moving and the case is tried as a complaint

case and the accused is acquitted. In such a case, the complainant

would have to seek special leave to appeal whereas the victim who

had not even approached the Court at the initial stage would be

entitled to file an appeal without seeking leave to appeal. While

considering this situation, Deepak Gupta, J. observed that while

expanding the rights of the victim to file an appeal, such right must

be balanced with the rights of the accused. Hence, it was the view

of Deepak Gupta, J. that even in a case when an appeal is filed by

a victim, there has to be scrutiny and special leave to appeal must

be obtained as the victim cannot be placed on a higher pedestal

than the State or the complainant. It was his view that by this

condition being imposed, the right of the victim to file an appeal is

not taken away or in any way diluted. Thus, according to his view,

Sections 378 (3), 378 (4) and 372 of the CrPC have to be read

together and the victim is also required to apply for leave to appeal

before his appeal can be entertained. Therefore, Deepak Gupta, J.

concluded that the right to file an appeal vested in the victim

cannot be higher than the right of filing an appeal which inheres

in the State and the complainant in a complaint case. Thus, if a

victim files an appeal against acquittal in the High Court, he has

to seek leave to appeal under Section 378 (3) of the CrPC.

5.9 If the interpretation as suggested by learned senior counsel

for the respondent is to be accepted by restricting the right of a

complainant in a cheque bounce case to file an appeal under

Section 378(3) of the CrPC subject to the conditions mentioned

20

thereto, we find that such a right would not only be illusory but

contrary to the intent and purpose of the amendment to Section

372 of the CrPC, whereby the proviso thereto has been added with

effect from 31.12.2009 to give a right of an appeal to a victim

without there being any condition circumscribing such a right.

5.10 In light of the two opposite views expressed in the above

judgment of this Court, it is necessary to discuss certain provisions

of the CrPC and arrive at our own conclusions on the point for

consideration. We observe that we are inclined to follow the view

taken by Lokur, J. insofar as the right of a victim of a crime to file

an appeal is concerned.

Analysis of the Relevant Provisions of CrPC:

6. Section 2 is the definition clause under which relevant

definitions are extracted as under:

“2. Definitions.—In this Code, unless the context

otherwise requires,—

xxx

(d) “complaint” means any allegation made orally or

in writing to a Magistrate, with a view to his taking

action under this Code, that some person, whether

known or unknown, has committed an offence, but

does not include a police report.

Explanation.—A report made by a police officer in a

case which discloses, after investigation, the

commission of a non-cognizable offence shall be

21

deemed to be a complaint; and the police officer by

whom such report is made shall be deemed to be the

complainant;

xxx

(n) “offence” means any act or omission made

punishable by any law for the time being in force and

includes any act in respect of which a complaint may

be made under section 20 of the Cattle Trespass Act,

1871 (1 of 1871);

xxx

(wa) “victim” means a person who has suffered any

loss or injury caused by reason of the act or omission

for which the accused person has been charged and

the expression “victim” includes his or her guardian or

legal heir;

xxx

24. Public Prosecutors.-

xxx

(8) The Central Government or the State Government

may appoint, for the purposes of any case or class of

cases, a person who has been in practice as an

advocate for not less than ten years as a Special Public

Prosecutor:

Provided that the Court may permit the victim to

engage an advocate of his choice to assist the

prosecution under this sub-section.

CHAPTER XV

COMPLAINTS TO MAGISTRATES

200. Examination of complainant.—A Magistrate

taking cognizance of an offence on complaint shall

examine upon oath the complainant and the witnesses

present, if any, and the substance of such

examination shall be reduced to writing and shall be

signed by the complainant and the witnesses, and also

by the Magistrate:

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Provided that, when the complaint is made in writing,

the Magistrate need not examine the complainant and

the witnesses—

(a) if a public servant acting or purporting to act in

the discharge of his official duties or a Court has

made the complaint; or

(b) if the Magistrate makes over the case for inquiry

or trial to another Magistrate under section 192:

Provided further that if the Magistrate makes over the

case to another Magistrate under section 192 after

examining the complainant and the witnesses, the

latter Magistrate need not re-examine them.

xxx

CHAPTER XXIX

APPEALS

372. No appeal to lie unless otherwise provided.—

No appeal shall lie from any judgment or order of a

Criminal Court except as provided for by this Code by

any other law for the time being in force:

Provided that the victim shall have a right to prefer an

appeal against any order passed by the Court

acquitting the accused or convicting for a lesser

offence or imposing inadequate compensation, and

such appeal shall lie to the Court to which an appeal

ordinarily lies against the order of conviction of such

Court.

xxx

377. Appeal by the State Government against

sentence.—(1) Save as otherwise provided in subsection (2), the State Government may, in any case of

conviction on a trial held by any Court other than a

High Court, direct the Public Prosecutor to present an

appeal against the sentence on the ground of its

inadequacy—

(a) to the Court of Session, if the sentence is

passed by the Magistrate; and

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(b) to the High Court, if the sentence is passed

by any other Court.

(2) If such conviction is in a case in which the offence

has been investigated by the Delhi Special Police

Establishment, constituted under the Delhi Special

Police Establishment Act, 1946 (25 of 1946), or by any

other agency empowered to make investigation into an

offence under any Central Act other than this Code,

the Central Government may also direct the Public

Prosecutor to present an appeal against the sentence

on the ground of its inadequacy—

(a) to the Court of Session, if the sentence is passed

by the Magistrate; and

(b) to the High Court, if the sentence is passed by any

other Court.

(3) When an appeal has been filed against the sentence

on the ground of its inadequacy, the Court of Session

or, as the case may be, the High Court shall not

enhance the sentence except after giving to the

accused a reasonable opportunity of showing cause

against such enhancement and while showing cause,

the accused may plead for his acquittal or for the

reduction of the sentence.

(4) When an appeal has been filed against a sentence

passed under section 376, section 376A, section

376AB, section 376B, section 376C, section 376D,

section 376DA, section 376DB or section 376E of the

Indian Penal Code (45 of 1860), the appeal shall be

disposed of within a period of six months from the date

of filing of such appeal.

378. Appeal in case of acquittal.—(1) Save as

otherwise provided in sub-section (2), and subject to

the provisions of sub-sections (3) and (5),—

(a) the District Magistrate may, in any case, direct the

Public Prosecutor to present an appeal to the

Court of Session from an order of acquittal passed

by a Magistrate in respect of a cognizable and nonbailable offence;

24

(b) the State Government may, in any case, direct the

Public Prosecutor to present an appeal to the High

Court from an original or appellate order of

acquittal passed by any Court other than a High

Court not being an order under clause (a) or an

order of acquittal passed by the Court of Session

in revision.

(2) If such an order of acquittal is passed in any case

in which the offence has been investigated by the Delhi

Special Police Establishment constituted under the

Delhi Special Police Establishment Act, 1946 (25 of

1946), or by any other agency empowered to make

investigation into an offence under any Central Act

other than this Code, the Central Government may,

subject to the provisions of sub-section (3), also direct

the Public Prosecutor to present an appeal—

(a) to the Court of Session, from an order of acquittal

passed by a Magistrate in respect of a cognizable

and non-bailable offence;

(b) to the High Court from an original or appellate

order of an acquittal passed by any Court other

than a High Court not being an order under clause

(a) or an order of acquittal passed by the Court of

Session in revision.

(3) No appeal to the High Court under sub-section (1)

or sub-section (2) shall be entertained except with the

leave of the High Court.

(4) If such an order of acquittal is passed in any case

instituted upon complaint and the High Court, on an

application made to it by the complainant in this

behalf, grants special leave to appeal from the order of

acquittal, the complainant may present such an

appeal to the High Court.

(5) No application under sub-section (4) for the grant

of special leave to appeal from an order of acquittal

shall be entertained by the High Court after the expiry

of six months, where the complainant is a public

servant, and sixty days in every other case, computed

from the date of that order of acquittal.

25

(6) If, in any case, the application under sub-section

(4) for the grant of special leave to appeal from an order

of acquittal is refused, no appeal from that order of

acquittal shall lie under sub-section (1) or under subsection (2).

xxx

386. Powers of the Appellate Court.—After perusing

such record and hearing the appellant or his pleader,

if he appears, and the Public Prosecutor if he appears,

and in case of an appeal under section 377 or section

378, the accused, if he appears, the Appellate Court

may, if it considers that there is no sufficient ground

for interfering, dismiss the appeal, or may—

(a) in an appeal from an order or acquittal, reverse

such order and direct that further inquiry be

made, or that the accused be re-tried or

committed for trial, as the case may be, or find

him guilty and pass sentence on him according to

law;

(b) in an appeal from a conviction—

(i) reverse the finding and sentence and acquit or

discharge the accused, or order him to be retried by a Court of competent jurisdiction

subordinate to such Appellate Court or

committed for trial, or

(ii) alter the finding, maintaining the sentence, or

(iii) with or without altering the finding, alter the

nature or the extent, or the nature and extent,

of the sentence, but not so as to enhance the

same—

(c) in an appeal for enhancement of sentence—

(i) reverse the finding and sentence and acquit or

discharge the accused or order him to be retried by a Court competent to try the offence,

or

(ii) alter the finding maintaining the sentence, or

26

(iii) with or without altering the finding, alter the

nature or the extent, or, the nature and

extent, of the sentence, so as to enhance or

reduce the same;

(d) in an appeal from any other order, alter or reverse

such order;

(e) make any amendment or any consequential or

incidental order that may be just or proper:

Provided that the sentence shall not be enhanced

unless the accused has had an opportunity of showing

cause against such enhancement:

Provided further that the Appellate Court shall not

inflict greater punishment for the offence which in its

opinion the accused has committed, than might have

been inflicted for that offence by the Court passing the

order or sentence under appeal.”

6.1 Chapter XXIX of the CrPC deals with appeals. The said

Chapter delineates the statutory framework governing appeals.

Section 372 unequivocally declares that no appeal shall lie from

any judgment or order of a criminal court except as provided for

by the CrPC itself or by any other law for the time being in force.

In fact, Section 372 of the CrPC speaks of an embargo on the filing

of an appeal from any judgment or order of a criminal court except

as provided for by the CrPC or by any other law for the time being

in force. Section 372 is couched in a negative language and it

states that no appeal shall lie from any judgment or order of a

criminal court except as provided for by the CrPC or by any other

law for the time being in force. Section 372 is a preface to the

27

chapter on appeals which in substance states that appeal can be

filed only in accordance with what has been stated in the

provisions to follow Section 372. The proviso was introduced to

Section 372 by the Code of Criminal Procedure (Amendment) Act,

2008 (Act 5 of 2009), which came into effect from 31.12.2009. By

virtue of this amendment, a limited right of appeal has been

conferred upon the victim of an offence. On a reading of the proviso

to Section 372, it is apparent that a victim shall have a right to

prefer an appeal against: (i) any order passed by the court

acquitting the accused or (ii) convicting for a lesser offence or (iii)

imposing inadequate compensation. Such appeal shall lie to the

court to which an appeal ordinarily lies against the order of

conviction of such court. In fact, with effect from 31.12.2009 when

clause (wa) to Section 2 was inserted to the definition of victim,

proviso to Section 24 was also added which provides that the Court

may permit the victim to engage an advocate of his choice to assist

the prosecution under the said sub-section.

6.1.1 Further, with effect from 31.12.2009, Section 357A and

Section 357B were inserted to the CrPC in the form of victim

compensation scheme for providing compensation to the victim or

his dependants who have suffered loss or injury as a result of the

28

crime and who require rehabilitation. The compensation payable

by the State Government under Section 357A is in addition to the

payment of fine to the victim of offences under Section 326A,

Section 376AB, Section376D, Section 376DA and Section 376DB

of the Indian Penal Code. Also, Section 357C states that all

hospitals, public or private, whether run by the Central

Government, the State Government, local bodies or any other

person, shall immediately, provide the first-aid or medical

treatment, free of cost, to the victims of any offence covered under

the aforesaid Sections.

6.2 While Section 374 of the CrPC deals with appeals from

convictions with which we are not concerned in this case, what is

of relevance is Section 378 which deals with appeal in case of

acquittal. The remedy of an appeal against an acquittal is couched

in certain conditions which are evident on a reading of subsections (4) and (5) of Section 378 of the CrPC vis-à-vis an appeal

that could be filed by a complainant. However, the Parliament in

its wisdom amended Section 372 of the CrPC by adding a proviso

thereto by virtue of the Code of Criminal Procedure (Amendment)

Act 2008 (5 of 2009), (with effect from 31.12.2009). It is hence

necessary to unravel the definition of victim in clause (wa) of

29

Section 2 of the CrPC which was also introduced along with proviso

to Section 372 of the CrPC. A victim is defined to mean a person

who has suffered any loss or injury caused by reason of the act or

omission for which the accused person has been charged and the

expression victim includes his or her guardian or legal heir;

6.3 The expression injury, as defined in Section 44 of the Indian

Penal Code, 1860 includes:

“Any harm whatever illegally caused to any person, in

body, mind, reputation or property.”

6.3.1 Similarly, Black’s Law Dictionary defines injury to include

property damage, bodily harm, or violation of a legal right.

6.3.2 Additionally, the United Nations General Assembly’s

Declaration of Basic Principles of Justice for Victims of Crime and

Abuse of Power (1985) provides a broad and inclusive definition of

victim. According to Article 1 of the Declaration:

“Victim means persons who, individually or

collectively, have suffered harm through acts or

omissions which involve physical or mental injury,

emotional distress, economic loss or substantial

impairment of their fundamental rights.”

6.3.3 Further, Article 2 extends the definition of victim to include

immediate family members, dependents, or those who have

intervened to assist a victim in crisis.

30

6.4 On a reading of the definition of ‘victim’, it is clear that the

said expression is initially exhaustive and thereafter inclusive. The

expression ‘victim’ means a person who has suffered any loss or

injury. The loss or injury could be either physical, mental, a

financial loss or injury. The expression injury could also be

construed as a legal injury in a wider sense and not just a physical

or a mental injury. The loss or injury must be caused by reason of

an act or omission for which the accused person has been charged.

Thus, it can be both by a positive act or negatively by an omission

which is at the instance of the accused and for which such accused

has been charged. Further, the expression ‘victim’ also includes

his/her guardian or legal heir in the case of demise of the victim.

6.5 Thus, the expression ‘victim’ has been couched in a broad

manner so as to include a person who has suffered any loss or

injury. The expressions ‘loss’ or ‘injury’ themselves are of a very

broad import which expressions also enlarge the scope of the

expression ‘victim’. Further, the expression ‘victim’ includes not

only the person who has suffered any loss or injury caused by

reason of any act or omission for which the accused person has

been charged but also includes his or her guardian or legal heir

which means that the definition of victim is inclusive in nature.

31

6.6 Having regard to the insertion of the proviso to Section 372

of the CrPC, we find that in the case of a victim who seeks to file

an appeal, he or she could proceed under the proviso to Section

372 of the CrPC in the circumstances mentioned therein and need

not prefer an appeal by invoking Section 378(4) of the CrPC which

is in respect of appeals to be filed by a complainant. It may be that

the complainant is a victim in certain cases and therefore, the

victim has the right to file an appeal under the proviso to Section

372 of the CrPC and need not proceed under Section 378(4) of the

CrPC. However, if the complainant is not a victim and intends to

file an appeal, in such a case a complainant would have to proceed

under Section 378 of the CrPC which circumscribes the right to

file an appeal by virtue of the conditions which are stipulated

under the said Section.

6.6.1 The word ‘victim’ is derived from the latin word “victima”

and originally contained the concept of sacrifice. In more

contemporary times, the term ‘victim’ has been expanded to imply

a victim of war, an accident, a scam, etc. As a scientific concept,

according to Criminologist B. Mendelsohn (1976), a victim may be

viewed as containing four fundamental criteria which are as

follows:

32

• The nature of the determinant that causes the suffering. The

suffering may be physical, psychological, or both depending on

the type of injurious act.

• The social character of the suffering. This suffering originates

in the victim’s and others’ reaction to the event.

• The nature of the social factor. The social implications of the

injurious act can have a greater impact, sometimes, than the

physical or psychological impact.

• The origin of the inferiority complex. This term, suggested by

Mendelsohn, manifests itself as a feeling of submission that

may be followed by a feeling of revolt. The victim generally

attributes his injury to the culpability of another person.

Victimology thus is a social-structural way of viewing crime

and the law and the criminal and the victim. Insofar as the injury

is concerned apart from there being short time and long time

physical injuries, there could also be economic or financial loss

which are also injuries within the meaning and definition of victim

under clause (wa) of Section 2 of the CrPC.

6.7 While analysing the expression ‘victim’, it is noted that it is

with reference to an accused person who has been charged. Under

33

the CrPC, the expression charge is defined under clause (b) of

Section 2 which reads as under:

2. Definitions.—In this Code, unless the

context otherwise requires,—

xxx

(b) “charge” includes any head of charge when the

charge contains more heads than one;

6.7.1 Besides the omnibus meaning, the CrPC does not define

what a charge is. However, judicial pronouncements tell us that a

charge is actually a precise formulation of the specific accusation

made against a person who is entitled to know its nature at the

earliest stage. The charge is against a person in respect of an act

committed or omitted in violation of penal law forbidding or

commanding it. In other words, a charge is an accusation made

against a person in respect of offence alleged to have been

committed by him, vide Esher Singh vs. State A.P., (2004) 11

SCC 585. In Birichh Bhuian vs. State of Bihar, AIR 1963 SC

1120, this Court observed that a charge is not a mere abstraction

but a concrete accusation against a person in respect of an offence

and that joinder of charges is permitted under certain

circumstances, whether joinder is against one person or different

persons.

34

6.7.2 In Advanced Law Lexicon by P Ramanatha Aiyar, 6th

Edition, Volume I, a charge is defined to mean an expression as

applied to a crime, sometimes used in a limited sense, intending

the accusation of a crime which precedes a formal trial; to mean a

person charged with an accusation of a crime. In a fuller and more

accurate sense, the expression charge includes the responsibility

for the crime. As a formal complaint, a charge signifies an

accusation, made in a legal manner of legal conduct, either of

omission or commission by the person charged. A person charged

with a crime means something more than being suspected or

accused of a crime by popular opinion or rumour and implies that

the offence has been alleged against the accused parties according

to the forms of law. The purpose of a charge is to tell an accused

person as precisely and consciously as possible of the matter with

which he is charged with. Thus, the expression charge includes the

element of offence and also reference to the person who is alleged

to have committed the offence.

7. For the purpose of applying the aforesaid discussion to the

present case, the following Sections of the Act are relevant and are

extracted as under:

“138. Dishonour of cheque for insufficiency, etc., of

funds in the account.— Where any cheque drawn by a

35

person on an account maintained by him with a banker

for payment of any amount of money to another person

from out of that account for the discharge, in whole or in

part, of any debt or other liability, is returned by the bank

unpaid, either because of the amount of money standing

to the credit of that account is insufficient to honour the

cheque or that it exceeds the amount arranged to be paid

from that account by an agreement made with that bank,

such person shall be deemed to have committed an offence

and shall, without prejudice to any other provision of this

Act, be punished with imprisonment for a term which may

be extended to two years, or with fine which may extend to

twice the amount of the cheque, or with both:

Provided that nothing contained in this section shall apply

unless—

(a) the cheque has been presented to the bank within a

period of six months from the date on which it is drawn

or within the period of its validity, whichever is earlier;

(b) the payee or the holder in due course of the cheque,

as the case may be, makes a demand for the payment

of the said amount of money by giving a notice in

writing, to the drawer of the cheque, within thirty days

of the receipt of information by him from the bank

regarding the return of the cheque as unpaid; and

(c) the drawer of such cheque fails to make the payment

of the said amount of money to the payee or, as the

case may be, to the holder in due course of the cheque,

within fifteen days of the receipt of the said notice.

Explanation.—For the purposes of this section, “debt or

other liability” means a legally enforceable debt or other

liability.

139. Presumption in favour of holder.— It shall be

presumed, unless the contrary is proved, that the holder

of a cheque received the cheque of the nature referred to

in section 138 for the discharge, in whole or in part, of any

debt or other liability.

xxx

36

141. Offences by companies.— (1) If the person

committing an offence under section 138 is a company,

every person who, at the time the offence was committed,

was in charge of, and was responsible to the company for

the conduct of the business of the company, as well as the

company, shall be deemed to be guilty of the offence and

shall be liable to be proceeded against and punished

accordingly:

Provided that nothing contained in this sub-section shall

render any person liable to punishment if he proves that

the offence was committed without his knowledge, or that

he had exercised all due diligence to prevent the

commission of such offence:

Provided further that where a person is nominated as a

Director of a company by virtue of his holding any office or

employment in the Central Government or State

Government or a financial corporation owned or controlled

by the Central Government or the State Government, as

the case may be, he shall not be liable for prosecution

under this Chapter.

(2) Notwithstanding anything contained in sub-section (1),

where any offence under this Act has been committed by a

company and it is proved that the offence has been

committed with the consent or connivance of, or is

attributable to, any neglect on the part of, any director,

manager, secretary or other officer of the company, such

director, manager, secretary or other officer shall also be

deemed to be guilty of that offence and shall be liable to be

proceeded against and punished accordingly.

Explanation.— For the purposes of this section, —

(a) “company” means any body corporate and includes a

firm or other association of individuals; and

(b) “director”, in relation to a firm, means a partner in the

firm.

142. Cognizance of offences.— (1) Notwithstanding

anything contained in the Code of Criminal Procedure,

1973 (2 of 1974),—

37

(a) no court shall take cognizance of any offence

punishable under section 138 except upon a

complaint, in writing, made by the payee or, as the

case may be, the holder in due course of the cheque;

(b) such complaint is made within one month of the date

on which the cause of action arises under clause (c) of

the proviso to section 138:

Provided that the cognizance of a complaint may be

taken by the Court after the prescribed period, if the

complainant satisfies the Court that he had sufficient

cause for not making a complaint within such period;

(c) no court inferior to that of a Metropolitan Magistrate

or a Judicial Magistrate of the first class shall try any

offence punishable under section 138.

(2) The offence under section 138 shall be inquired into

and tried only by a court within whose local jurisdiction,—

(a) if the cheque is delivered for collection through an

account, the branch of the bank where the payee or

holder in due course, as the case may be, maintains

the account, is situated; or

(b) if the cheque is presented for payment by the payee or

holder in due course, otherwise through an account,

the branch of the drawee bank where the drawer

maintains the account, is situated.

Explanation.—For the purposes of clause (a), where a

cheque is delivered for collection at any branch of the bank

of the payee or holder in due course, then, the cheque shall

be deemed to have been delivered to the branch of the bank

in which the payee or holder in due course, as the case

may be, maintains the account.

143. Power of Court to try cases summarily.— (1)

Notwithstanding anything contained in the Code of

Criminal Procedure, 1973 (2 of 1974), all offences under

this Chapter shall be tried by a Judicial Magistrate of the

first class or by a Metropolitan Magistrate and the

provisions of sections 262 to 265 (both inclusive) of the

said Code shall, as far as may be, apply to such trials:

38

Provided that in the case of any conviction in a summary

trial under this section, it shall be lawful for the Magistrate

to pass a sentence of imprisonment for a term not

exceeding one year and an amount of fine exceeding five

thousand rupees:

Provided further that when at the commencement of, or in

the course of, a summary trial under this section, it

appears to the Magistrate that the nature of the case is

such that a sentence of imprisonment for a term exceeding

one year may have to be passed or that it is, for any other

reason, undesirable to try the case summarily, the

Magistrate shall after hearing the parties, record an order

to that effect and thereafter recall any witness who may

have been examined and proceed to hear or rehear the

case in the manner provided by the said Code.

(2) The trial of a case under this section shall, so far as

practicable, consistently with the interests of justice, be

continued from day to day until its conclusion, unless the

Court finds the adjournment of the trial beyond the

following day to be necessary for reasons to be recorded in

writing.

(3) Every trial under this section shall be conducted as

expeditiously as possible and an endeavour shall be made

to conclude the trial within six months from the date of

filing of the complaint.

xxx

147. Offences to be compoundable.— Notwithstanding

anything contained in the Code of Criminal Procedure,

1973 (2 of 1974), every offence punishable under this Act

shall be compoundable.”

7.1 In the context of the present case, a person who fails to

satisfy his legal liability to honour a cheque owing to insufficiency

of funds, or other reasons concerning his bank account is deemed

to have committed an offence under Section 138 of the Act and

39

therefore is charged as an accused for such an offence and can be

punished by imprisonment for a term which may extend to two

years or a fine which may extend to twice the amount of the cheque

or both.

7.2 The expression ‘accused’ is not defined under the CrPC but

it denotes different meanings according to the context in which it

is deployed. It, inter alia, means, a person against whom there is

an accusation, or a person on trial, and so on. The expression

‘accused’ being used in different context would remind us of what

has been cited by this Court in Directorate of Enforcement vs.

Deepak Mahajan, (1994) 3 SCC 440 wherein Chapter IV of the

book titled The Loom of Language by Frederick Bodmer has been

cited in the following words:

“Words are not passive agents meaning the same thing

and carrying the same value at all times and in all

contexts. They do not come in standard shapes and

sizes like coins from the mint, nor do they go forth with

a decree to all the world that they shall mean only so

much, no more and no less. Through its own

particular personality, each word has a penumbra of

meaning which no draftsman can entirely cut away. It

refuses to be used as a mathematical symbol.”

The expression ‘accused of any offence’ would include within

its ambit only a person against whom formal accusation relating to

40

commission of offence has been levelled which in the normal course

may result in his prosecution.

7.3 When is an accused charged of an offence under Section 138

of the Act would be relevant. It would be pertinent to refer to

Section 200 of CrPC as a proceeding under Section 138 of the Act

is commenced not on the basis of a police report but on the basis

of a complaint filed under Section 200 of the CrPC. The expression

‘complaint’ is defined under Section 2(d) of the CrPC to mean an

allegation made orally or in writing to a Magistrate with a view to

his taking action under the CrPC, that some person, whether

known or unknown, has committed an offence but does not include

a police report.

7.4 When a complaint is filed under Section 200 of the CrPC, a

Magistrate taking cognizance of an offence on such complaint

examines upon oath the complainant and the witnesses present, if

any, and the substance of such examination is reduced to writing

which is required to be signed by the complainant and the

witnesses and also the Magistrate. Section 202 of the CrPC states

that any Magistrate, on receipt of a complaint of an offence of which

he is authorized to take cognizance or which has been made over

to him under Section 192, may, if he thinks fit, postpone the issue

41

of process, and either inquire into the case himself or direct an

investigation for the purpose of deciding whether or not there is

sufficient ground for proceeding. However, no such direction for

investigation shall be made where the complaint has not been

made by a Court, unless the complainant and the witnesses

present (if any) have been examined on oath under Section 200 of

the CrPC.

7.5 Chapter XXI of the CrPC deals with summary trials. The said

chapter has to be read in conjunction with Section 143 of the Act

which states that all offences under Chapter XVII of the Act,

including an offence under Section 138 (dishonour of cheque for

insufficiency, etc., of funds in the account) shall be tried by a

Judicial Magistrate of First Class or by a Metropolitan Magistrate

and the provisions of Sections 262 to 265 of the CrPC (both

inclusive), shall, as far as may be, apply to such trials. Thus, for

an offence committed under Section 138 of the Act, the trial is as

per Section 143 of the said Act read with Chapter XXI of the CrPC.

The fact that under Section 138 of the Act, a deeming fiction has

been introduced, wherein a person who comes within the scope

and ambit of the section is a person who is deemed to have

committed an offence and could be punished with both

42

imprisonment as well as with fine, would mean that such a person

is an accused and is charged for the said offence and tried under

Chapter XXI of the CrPC by way of a summary trial.

7.6 As already noted, the Act does not have a provision for filing

of an appeal. The Act is a special enactment. In the circumstances,

the CrPC, which is general in nature would have to be resorted to.

The proviso to Section 372 of the CrPC considers the right of filing

of an appeal from the point of view of a victim, which expression

not only includes an injured victim but even the legal

representatives of a deceased victim. The inclusion of the proviso

to Section 372 of the CrPC has to be read in the context of the

definition of victim in clause (wa) of Section 2 of the CrPC. The

expression ‘victim’ as defined under the said provision, includes

not only the person who has suffered any loss or injury caused by

the reason of the act or omission for which the accused person has

been charged but the said expression also includes his or her

guardian or legal heir.

7.7 In the context of offences under the Act, particularly under

Section 138 of the said Act, the complainant is clearly the

aggrieved party who has suffered economic loss and injury due to

the default in payment by the accused owing to the dishonour of

43

the cheque which is deemed to be an offence under that provision.

In such circumstances, it would be just, reasonable and in

consonance with the spirit of the CrPC to hold that the

complainant under the Act also qualifies as a victim within the

meaning of Section 2(wa) of the CrPC. Consequently, such a

complainant ought to be extended the benefit of the proviso to

Section 372, thereby enabling him to maintain an appeal against

an order of acquittal in his own right without having to seek special

leave under Section 378(4) of the CrPC.

7.8 In the case of an offence alleged against an accused under

Section 138 of the Act, we are of the view that the complainant is

indeed the victim owing to the alleged dishonour of a cheque. In

the circumstances, the complainant can proceed as per the proviso

to Section 372 of the CrPC and he may exercise such an option

and he need not then elect to proceed under Section 378 of the

CrPC.

7.9 In this context, we wish to state that the proviso to Section

372 does not make a distinction between an accused who is

charged of an offence under the penal law or a person who is

deemed to have committed an offence under Section 138 of the Act.

Symmetrical to a victim of an offence, a victim of a deemed offence

44

under Section 138 of the Act also has the right to prefer an appeal

against any order passed by the court acquitting the accused or

convicting for a lesser offence or imposing an inadequate

compensation. When viewed from the perspective of an offence

under any penal law or a deemed offence under Section 138 of the

Act, the right to file an appeal is not circumscribed by any condition

as such, so long as the appeal can be premised in accordance with

proviso to Section 372 which is the right to file an appeal by a

victim, provided the circumstances which enable such a victim to

file an appeal are met. The complainant under Section 138 is the

victim who must also have the right to prefer an appeal under the

said provision. Merely because the proceeding under Section 138

of the Act commences with the filing of a complaint under Section

200 of the CrPC by a complainant, he does not cease to be a victim

inasmuch as it is only a victim of a dishonour of cheque who can

file a complaint. Thus, under Section 138 of the Act both the

complainant as well as the victim are one and the same person.

7.10 Section 378 of the CrPC is a specific provision dealing with

appeals. Sub-section (3) of Section 378 states that no appeal to the

High Court under sub-section (1) or sub-section (2) shall be

entertained except with the leave of the Court, with which we are

45

not concerned in the instant case. However, sub-section (4) of

Section 378 is pertinent. It states that if an order of acquittal is

passed in any case instituted upon a complaint and the High

Court, on an application made to it by the complainant in that

behalf, grants special leave to appeal from the order of acquittal,

the complainant may present such an appeal to the High Court.

The limitation period for seeking special leave to appeal is six

months where the complainant is a public servant and sixty days

in every other case, computed from the date of the order of

acquittal. Sub-Section (6) states that if, in any case, the application

under sub-section (4) for grant of special leave to appeal from an

order of acquittal is refused, no appeal from that order of acquittal

shall lie under sub-section (1) or under sub-section (2) of Section

378.

7.11 A reading of section 378 would clearly indicate that in case

the complainant intends to file an appeal against the order of

acquittal, his right is circumscribed by certain conditions

precedent. When an appeal is to be preferred by a complainant,

the first question is, whether, the complainant is also the victim or

only an informant. If the complainant is not a victim and the case

is instituted upon a complaint, then sub-section (4) requires that

46

the complainant must seek special leave to appeal from an order of

acquittal from the High Court. As noted under sub-section (6), if

the application under sub-section (4) for grant of special leave to

appeal from the order of acquittal is refused, no appeal from that

order of acquittal would lie, inter alia, under sub-section (1) of

Section 378. However, if the complainant is also a victim, he could

proceed under the proviso to Section 372, in which case the rigour

of sub-section (4) of Section 378, which mandates obtaining special

leave to appeal, would not arise at all, as he can prefer an appeal

as a victim and as a matter of right. Thus, if a victim who is a

complainant, proceeds under Section 378, the necessity of seeking

special leave to appeal would arise but if a victim whether he is a

complainant or not, files an appeal in terms of proviso to Section

372, then the mandate of seeking special leave to appeal would not

arise.

7.12 The reasons for the above distinction are not far to see and

can be elaborated as follows:

Firstly, the victim of a crime must have an absolute

right to prefer an appeal which cannot be circumscribed

by any condition precedent. In the instant case, a victim

under Section 138 of the Act, i.e., a payee or the holder of

47

a cheque is a person who has suffered the impact of the

offence committed by a person who is charged of the

offence, namely, the accused, whose cheque has been

dishonoured.

Secondly, the right of a victim of a crime must be

placed on par with the right of an accused who has

suffered a conviction, who, as a matter of right can prefer

an appeal under Section 374 of the CrPC. A person

convicted of a crime has the right to prefer an appeal under

Section 374 as a matter of right and not being subjected

to any conditions. Similarly, a victim of a crime, whatever

be the nature of the crime, unconditionally must have a

right to prefer an appeal.

Thirdly, it is for this reason that the Parliament

thought it fit to insert the proviso to sub-section 372

without mandating any condition precedent to be fulfilled

by the victim of an offence, which expression also includes

the legal representatives of a deceased victim who can

prefer an appeal.

On the contrary, as against an order of acquittal, the

State, through the Public Prosecutor can prefer an appeal

48

even if the complainant does not prefer such an appeal,

though of course such an appeal is with the leave of the

court. However, it is not always necessary for the State or

a complainant to prefer an appeal. But when it comes to a

victim’s right to prefer an appeal, the insistence on seeking

special leave to appeal from the High Court under Section

378(4) of the CrPC would be contrary to what has been

intended by the Parliament by insertion of the proviso to

Section 372 of the CrPC.

Fourthly, the Parliament has not amended Section

378 to circumscribe the victim’s right to prefer an appeal

just as it has with regard to a complainant or the State

filing an appeal. On the other hand, the Parliament has

inserted the proviso to Section 372 so as to envisage a

superior right for the victim of an offence to prefer an

appeal on the grounds mentioned therein as compared to

a complainant.

Fifthly, the involvement of the State in respect of an

offence under Section 138 of the Act is conspicuous by its

absence. This is because the complaint filed under that

provision is in the nature of a private complaint as per


Section 200 of the CrPC and Section 143 of the Act by an

express intention incorporates the provisions of the CrPC

in the matter of trial of such a deemed offence tried as a

criminal offence. Therefore, the complainant, who is the

victim of a dishonour of cheque must be construed to be

victim in terms of the proviso to Section 372 read with the

definition of victim under Section 2(wa) of the CrPC.

8. The right to prefer an appeal is no doubt a statutory right and

the right to prefer an appeal by an accused against a conviction is

not merely a statutory right but can also be construed to be a

fundamental right under Articles 14 and 21 of the Constitution. If

that is so, then the right of a victim of an offence to prefer an appeal

cannot be equated with the right of the State or the complainant to

prefer an appeal. Hence, the statutory rigours for filing of an appeal

by the State or by a complainant against an order of acquittal

cannot be read into the proviso to Section 372 of the CrPC so as to

restrict the right of a victim to file an appeal on the grounds

mentioned therein, when none exists.

9. In the circumstances, we find that Section 138 of the Act being

in the nature of a penal provision by a deeming fiction against an

accused who is said to have committed an offence under the said

provision, if acquitted, can be proceeded against by a victim of the

said offence, namely, the person who is entitled to the proceeds of

a cheque which has been dishonoured, in terms of the proviso to

Section 372 of the CrPC, as a victim. As already noted, a victim of

an offence could also be a complainant. In such a case, an appeal

can be preferred either under the proviso to Section 372 or under

Section 378 by such a victim. In the absence of the proviso to

Section 372, a victim of an offence could not have filed an appeal

as such, unless he was also a complainant, in which event he could

maintain an appeal if special leave to appeal had been granted by

the High Court and if no such special leave was granted then his

appeal would not be maintainable at all. On the other hand, if the

victim of an offence, who may or may not be the complainant,

proceeds under the proviso to Section 372 of the CrPC, then in our

view, such a victim need not seek special leave to appeal from the

High Court. In other words, the victim of an offence would have the

right to prefer an appeal, inter alia, against an order of acquittal in

terms of the proviso to Section 372 without seeking any special

leave to appeal from the High Court only on the grounds mentioned

therein. A person who is a complainant under Section 200 of the

CrPC who complains about the offence committed by a person who is charged as an accused under Section 138 of the Act, thus has the right to prefer an appeal as a victim under the proviso to

Section 372 of the CrPC.

10. As already noted, the proviso to Section 372 of the CrPC 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 the CrPC, 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 the CrPC.

11. In the result, the impugned common order dated 12.06.2024

in Crl. O.P. Nos.929, 931 and 1034 of 2024 in Crl. A. SR. Nos.1282,

1300 and 1321 of 2024 is set aside. Liberty is reserved to the

appellant herein to file the appeal(s) having regard to the proviso

to Section 372 of the CrPC within four months from today.

12. Should the appeal(s) be filed within the period of four months

from today, the issue of limitation may not be raised by the

respondents herein or by the appellate court.

These appeals are allowed in the aforesaid terms.

…………………………………………..J.

 (B. V. NAGARATHNA)

…………………………………………..J.

 (SATISH CHANDRA SHARMA)

NEW DELHI;

APRIL 08, 2025.

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