Authority: High Court of Gujarat at Ahmedabad

Order Date: 14/07/2026

Case Overview

  • Parties: appellant – Mass Financial Services Ltd (through Vijay Krushnakant Kadiya) vs respondents – Gopalbhai Devabhai Makwana & Anr.; also HCLS Committee and Ms Jyoti Bhatt appeared for respondents.
  • Proceedings: Criminal Appeal (against acquittal) No. 398 of 2014 filed under Section 378 of the Criminal Procedure Code, 1973 and Section 419 of the Bharatiya Nagrik Suraksha Sanhita, 2023, challenging the acquittal order dated 10‑12‑2013 passed by the 6th Additional Chief Judicial Magistrate, Rajkot.
  • Legal Background: The Court referred to the Supreme Court judgment in Celestium Financial Vs. A. Gnanasekaran (2025 (3) GLH 747), which held that a complainant in a cheque‑dishonour case under Section 138 of the Negotiable Instruments Act is the victim and may file an appeal under the proviso to Section 372 CrPC, without needing to resort to Section 378. The Court also cited its own earlier decision in Shivsinh Ganpatsinh Solanki Vs. State of Gujarat (Criminal Misc. Applications Nos. 12753/2019 & 12908/2019) and the recent Supreme Court reference in Everest Automobiles Vs. Rajit Enterprises (SLA No. 12350/2024), noting that a larger Bench should eventually pronounce on the issue.
  • Key Observations from Supreme Court (paras 7.8, 7.9, 7.12):
  • The complainant‑victim has an unconditional right to appeal under the proviso to Section 372 CrPC.
  • No distinction is made between a penal offence and a deemed offence under Section 138; the victim’s right is on par with an accused’s right under Section 374.
  • Parliament intended the proviso to give the victim a superior right to appeal, without any condition precedent.
  • The State’s involvement is absent in Section 138 matters, reinforcing the private‑complaint nature and the victim’s standing.

Final Outcome

  • The High Court disposed of the appeal by directing the Registry to transfer the entire case record, including certified copies of the impugned order, to the appropriate Sessions Court.
  • The transferred matter shall be treated as an appeal under the proviso to Section 372 CrPC / Section 413 BNSS and numbered accordingly.
  • The Sessions Court is instructed to issue notice to the parties and to dispose of the matter expeditiously, though the High Court did not examine the merits of the case.

Topics: Legal Appeal, Cheque Dishonour, Victim’s Right to Appeal