Delhi High Court Recognizes Complainants Under Section 138 NI Act as Victims, Paves Way for Direct Appeals

Landmark Judgment Allows Complainants to Appeal Against Acquittals Without Special Leave

In a landmark judgment delivered on November 6, 2025, the Delhi High Court has set a precedent by recognizing complainants under Section 138 of the Negotiable Instruments Act, 1881, as victims under the Criminal Procedure Code, 1973, thereby allowing them to appeal directly against acquittals without the need for special leave. This ruling comes in the wake of the Supreme Court's decision in Celestium Financial v. A. Gnanasekaran, which clarified the legal position regarding the rights of complainants who suffer financial loss due to cheque dishonor.

The case, Jai Khera v. Suresh Kumar Jain, involved a petitioner seeking leave to appeal against a judgment of acquittal passed by the Judicial Magistrate First Class in the Tis Hazari Courts Complex, Delhi. The petitioner, Jai Khera, represented by Advocate Ms. Anshul Garg, contended that as a complainant under Section 138 NI Act, he should be allowed to appeal directly under the proviso to Section 372 Cr.P.C., bypassing the requirement of special leave under Section 378(4) Cr.P.C.

Justice Manoj Kumar Ohri, presiding over the case, referred to the Supreme Court's decision in Celestium Financial, which held that complainants under Section 138 NI Act qualify as victims within the meaning of Section 2(wa) Cr.P.C. This interpretation grants them the right to appeal against acquittals, convictions for lesser offenses, or inadequate compensation directly to the Sessions Court, as per Section 143 NI Act.

The judgment emphasized the independent and self-contained nature of the proviso to Section 372 Cr.P.C., which provides victims, including those under deemed offenses like Section 138 NI Act, with an autonomous right to appeal. This right does not require the complainant to seek special leave from the High Court, thus streamlining the appellate process for individuals who have suffered economic loss due to the dishonor of cheques.

The Court directed the transfer of the case records to the concerned Sessions Court for further proceedings, highlighting the importance of preserving the available forum for appeal and ensuring that complainants can exercise their rights effectively.

This ruling is expected to have significant implications for numerous cases across the country, as it aligns with decisions from various High Courts, including Bombay, Karnataka, Chhattisgarh, Madhya Pradesh, Gujarat, Gauhati, Allahabad, and Himachal Pradesh, all of which have followed the Supreme Court's directive in similar matters.

The decision marks a progressive step in recognizing the rights of complainants under the NI Act, ensuring their access to justice and the ability to challenge judgments of acquittal without procedural hurdles.

Bottom Line:

Under Section 138 NI Act, the complainant who suffers financial loss due to dishonor of cheque qualifies as a victim under Section 2(wa) Cr.P.C., thereby allowing them to appeal against acquittal directly under proviso to Section 372 Cr.P.C., without seeking special leave under Section 378(4) Cr.P.C.

Statutory provision(s): Section 138 of the Negotiable Instruments Act, 1881; Section 2(wa), Section 372, Section 378(4) of the Criminal Procedure Code, 1973; Section 143 of the Negotiable Instruments Act, 1881

Jai Khera v. Suresh Kumar Jain, (Delhi) : Law Finder Doc Id # 2807064