Delhi High Court Upholds Complainant's Right to Appeal in Cheque Bounce Cases

Complainants under Section 138 of the NI Act can now appeal acquittal directly as victims, without seeking special leave.

In a significant development, the Delhi High Court has clarified the procedural rights of complainants in cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881. The judgment, delivered by Justice Manoj Kumar Ohri, establishes that complainants, who suffer financial losses due to cheque dishonour, are recognized as victims under Section 2(wa) of the Criminal Procedure Code (Cr.P.C.). This recognition entitles them to file an appeal against an acquittal directly under the proviso to Section 372 of the Cr.P.C., without the need for special leave under Section 378(4).

The case in question, Smt. Geeta Kumari v. M/s. Group of Fanbe Residency Veli Pvt. Ltd., involved an appeal against an acquittal from the Judicial Magistrate of First Class, Saket Courts, New Delhi. The petitioner, Smt. Geeta Kumari, sought to challenge the acquittal of M/s. Group of Fanbe Residency Veli Pvt. Ltd. in a cheque bounce case. Citing the recent Supreme Court decision in Celestium Financial v. A. Gnanasekaran, the High Court underscored that complainants under Section 138, who experience economic harm due to cheque dishonour, qualify as victims. This categorization affords them the independent right to appeal an acquittal as outlined in the Cr.P.C.

Justice Ohri emphasized that the proviso to Section 372 Cr.P.C. provides a self-contained right for victims to appeal, distinct from the procedures under Section 378 Cr.P.C. This right is applicable to any order of acquittal, conviction for a lesser offence, or inadequate compensation. Consequently, in line with the legal precedent set by the Supreme Court, the High Court directed the transfer of the appeal to the concerned Appellate Court of Sessions, allowing the complainant to pursue the appeal without the procedural burden of obtaining special leave from the High Court.

This judgment aligns with similar decisions across various High Courts, including Bombay, Karnataka, Chhattisgarh, Madhya Pradesh, Gujarat, Gauhati, Allahabad, and Himachal Pradesh, reinforcing the legal position that victims of cheque bounce cases hold the right to appeal an acquittal directly as victims.

The ruling marks a pivotal step in empowering complainants in cheque bounce cases, ensuring they have a viable path to seek redress for financial grievances without procedural hindrances. The legal community views this as a progressive move towards enhancing the rights of victims in financial offences.

Bottom Line:

A complainant under Section 138 of the Negotiable Instruments Act, 1881, qualifies as a victim under Section 2(wa) of Cr.P.C., and can maintain an appeal against an acquittal under the proviso to Section 372 of Cr.P.C. without seeking special leave under Section 378(4) Cr.P.C.

Statutory provision(s): Negotiable Instruments Act, 1881 - Section 138, Criminal Procedure Code, 1973 - Sections 2(wa), 372, 378(4)

Smt. Geeta Kumari v. M/s. Group of Fanbe Residency Veli Pvt. Ltd., (Delhi) : Law Finder Doc Id # 2813445