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Complainant in a cheque dishonor case under Section 138 of the Negotiable Instruments Act, 1881 (“NI Act”) qualifies as a ‘victim’ – Supreme Court December 12, 2025
Published in: Articles
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In a significant ruling, the Hon’ble Supreme Court in Celestium Financial v. A. Gnanasekaran & Ors., 2025 INSC 804, held that a complainant in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, 1881 (“NI Act”) qualifies as a ‘victim’ under Section 2(wa) of the Code of Criminal Procedure, 1973 (“Cr.P.C”).
As a result, if a complaint under Section 138 of the NI Act is dismissed by the Magistrate or if inadequate compensation is awarded, the complainant is now entitled to directly file an appeal, without seeking prior leave of the appropriate High court.
Legal Position Prior to the Judgment:
Before this ruling, if a Magistrate dismissed a complaint under the NI Act and acquitted the accused, the complainant’s only remedy was to seek leave from the High Court under Section 378(4) of the Cr.P.C. Only upon grant of such leave could an appeal be entertained. If leave was denied, the complainant had no further recourse to appeal the acquittal. The only recourse left to the complainant, in such cases, was to challenge the High Court’s refusal to grant leave by filing a Special Leave Petition (“SLP”) before the Supreme Court.
Impact of the Judgment:
Following this judgment, a complainant in a cheque dishonour case whose complaint is dismissed or who receives inadequate compensation can now directly file an appeal before the Court of Session.
Authored By
Rajat Jain, Advocate
Email: [email protected]
Mobile No. 9953887311
