Authority: High Court of Gujarat at Ahmedabad

Order Date: 01/10/2026

Case Overview

  • Parties: Appellant – Gujarat State Cooperative Agriculture and Rural Development Bank Ltd; Respondents – Varsangbhai Haribhai Chauhan & Anr.
  • Nature of Proceeding: Criminal appeal (R/Criminal Appeal No. 2114 of 2023) against the judgment and order dated 04.03.2023 of the Chief Judicial Magistrate, Bhuj‑Kutch, which acquitted the accused of an offence under Section 138 of the Negotiable Instruments Act, 1881.
  • Statutory Provisions Invoked: Section 378 of the Criminal Procedure Code, 1973; Section 419 of the Bharatiya Nagrik Suraksha Sanhita, 2023; the appeal is sought under the proviso to Section 372 CrPC (or Section 413 BNSS) as the complainant is deemed the victim.
  • Key Precedents Cited:
  • Supreme Court decision in Celestium Financial Vs. A. Gnanasekaran (2025 (3) GLH 747) establishing that the complainant in a Section 138 case is the victim and may file an appeal under Section 372 CrPC without needing to resort to Section 378.
  • Pending Supreme Court matter Everest Automobiles Vs. Ranjit Enterprises (Special Leave to Appeal No. 12350/2024) highlighting the need for an authoritative pronouncement on the issue.
  • Gujarat High Court decisions: Shivsinh Ganpatsinh Solanki Vs. State of Gujarat (Criminal Misc. Applications Nos. 12753/2019 & 12908/2019) and Thakar Hariprasad Dalsukhram Vs. State of Gujarat (2026 SCC OnLine Guj 569), both reinforcing the victim‑appeal right.
  • Observations from Supreme Court Judgment (paras 7.8, 7.9, 7.12):
  • The complainant is the victim of a dishonoured cheque and can exercise the right to appeal under the proviso to Section 372.
  • No condition precedent should restrict the victim’s right to appeal; the right is on par with an accused’s right under Section 374.
  • Parliament intended an unconditional right for victims, including legal representatives of deceased victims, to prefer an appeal.
  • The State’s role is absent in Section 138 matters as they are private complaints under Section 200 CrPC.

Final Outcome

  • The High Court orders the appeal to be transferred to the concerned Sessions Court.
  • Upon transfer, the matter shall be treated as an appeal under the proviso to Section 372 CrPC / Section 413 BNSS and numbered accordingly.
  • The Registry is directed to forward the entire case record, including certified copies of the impugned order, to the Sessions Court forthwith.
  • The lower appellate court is instructed to dispose of the appeal expeditiously; the High Court does not examine the merits at this stage.

Topics: Victim Appeal Rights, Cheque Dishonour, Criminal Procedure