Judgment Examines Section 138 of Negotiable Instruments Act and Sections 372 & 378 of CrPC; Seeks Clarification on Complainants' Appeal Rights.
In a significant development, the Supreme Court of India has referred a crucial legal question to a larger bench regarding the rights of complainants in cheque bounce cases under Section 138 of the Negotiable Instruments Act, 1881. The issue pertains to whether complainants can file an appeal against acquittal without obtaining special leave under Section 378(4) of the Code of Criminal Procedure, 1973 (CrPC).
The matter arose in the case of M/s Everest Automobiles v. M/s Rajit Enterprises, where the complainant, M/s Everest Automobiles, sought to appeal an acquittal order. The bench comprising Justices Sanjay Kumar and K. Vinod Chandran reviewed previous conflicting judgments on the matter.
The court noted that a recent judgment in Celestium Financial v. A. Gnanasekaran allowed complainants to appeal as 'victims' under the proviso to Section 372 of the CrPC without seeking special leave. However, this view contradicted earlier Supreme Court decisions in Satya Pal Singh v. State of M.P. and Subhash Chand v. State (Delhi Administration), which mandated obtaining leave before appealing.
Justice Sanjay Kumar emphasized the importance of distinguishing between the prosecuting agency and the victim under Sections 372 and 378 of the CrPC. The judgment highlighted that the proviso to Section 372 was specifically carved out, respecting this distinction.
Acknowledging the significant implications of this issue, the bench concluded that an authoritative pronouncement by a larger bench is necessary. The matter has been referred to the Chief Justice of India for appropriate directions, underscoring the need for clarity on the procedural rights of complainants in such cases.
Bottom Line:
Interpretation of Sections 372 and 378 of the Code of Criminal Procedure, 1973 regarding the right of a complainant under Section 138 of the Negotiable Instruments Act, 1881, to file an appeal against an order of acquittal without seeking special leave to appeal.
Statutory provision(s): Sections 372, 378 of the Code of Criminal Procedure, 1973; Section 138 of the Negotiable Instruments Act, 1881.
M/s Everest Automobiles v. M/s Rajit Enterprises, (SC) : Law Finder Doc id # 2853425
