New Delhi, June 6, 2025 

In a notable decision strengthening victims’ rights in financial offences, the Supreme Court has ruled that a complainant in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, 1881, can file an appeal against acquittal as a “victim” under the proviso to Section 372 of the Code of Criminal Procedure (CrPC).

 

A bench comprising Justices B.V. Nagarathna and Satish Chandra Sharma held that such complainants qualify as victims within the meaning of Section 2(wa) of the CrPC, and therefore, can directly appeal an acquittal order without obtaining prior leave under Section 378(4).

 

The judgment resolves a longstanding ambiguity regarding whether complainants in cheque bounce cases who typically initiate prosecution through a private complaint—have the same appellate rights as victims in police-registered cases.

 

“The financial loss and legal injury suffered by the complainant due to dishonour of a legally enforceable cheque entitles them to be treated as a victim under CrPC,” the Court noted, stressing that procedural barriers should not limit access to justice where substantive harm has occurred.

 

The case arose from an appeal filed by a private financial entity whose complaint had been dismissed by the trial court. While the High Court initially declined to entertain the appeal on procedural grounds, the Supreme Court overruled that view, clarifying that the 2009 amendment to CrPC introducing the victim’s right to appeal must be interpreted expansively.

 

This ruling is expected to have significant implications for financial litigation, particularly in cheque dishonour cases where acquittals have previously gone unchallenged due to procedural confusion.

 

 

Key Takeaways:

• Complainants in Section 138 NI Act cases can appeal acquittal as “victims.”

• No prior permission under Section 378(4) is needed.

• The ruling promotes equal access to justice for financial victims under criminal law.