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Supreme Court Affirms Companies as “Victims” Entitled to Appeal Acquittals Under Section 372 Code of Criminal Procedure, 1973 December 13, 2025
Published in: Articles
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In a significant ruling, the Hon’ble Supreme Court in Asian Paints Limited v. Ram Babu & Another, 2025 INSC 828, has clarified that a complainant company qualifies as a “victim” under Section 2(wa) of the Code of Criminal Procedure, 1973 (CrPC) and is therefore entitled to directly appeal an order of acquittal under Section 372 CrPC.
While reaching this conclusion, the Supreme Court underscored that the proviso to Section 372 CrPC was introduced with the objective of strengthening the participatory rights of victims in the criminal justice system. Recognising that commercial entities may suffer real and substantial harm, financial loss, dilution of goodwill, reputational injury, the Court adopted a purposive interpretation ensuring that such entities are not deprived of statutory appellate remedies.
The Supreme Court also held that the High Court erred in concluding that only the individual authorised to file the complaint on behalf of the company could maintain the appeal. Overruling this view, the Supreme Court affirmed that the company itself, being the entity that suffers the consequences of the offence, is the true “victim” and may independently pursue an appeal against acquittal.
Crucially, the Court reiterated that once a complainant company qualifies as a “victim” under Section 2(wa), the statutory right of appeal under Section 372 CrPC becomes immediately available. In such circumstances, there is no requirement to obtain prior leave of the Court under Section 378 CrPC. The order of acquittal can therefore be directly challenged under Section 372 of the CrPC.
Authored By
Rajat Jain, Advocate
Email: [email protected]
Mobile No. 9953887311
