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2025 DAILYLAW 90263 (KAR)

M/S. STCL LIMITED v. M/S SHREE GANESH STEEL ROLLING MILLS LTD

CRL.A/241/2019 · 2025-12-08

G Basavaraja

Criminal Appealbody2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:54936 CRL.A No. 241 of 2019 C/W CRL.A No. 242 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE G BASAVARAJA CRIMINAL APPEAL NO. 241 OF 2019 (A) C/W CRIMINAL APPEAL NO. 242 OF 2019 IN CRL.A No. 241/2019 BETWEEN: 1. M/S. STCL LIMITED (A GOVERNMENT OF INDIA UNDER TAKING) FORMERLY HAVING THEIR OFFICE AT NO. 166/2, 13TH MAIN ROAD, VASANTHNAGAR, BANGALORE-560 052. PRESENTLY AT: "CHANDRODAYA", NO.10/1, 2ND MAIN, 30TH CROSS, 7TH BLOCK, JAYANAGAR, BANGALORE-560 070, REPRESENTED BY ITS PRESENT GENERAL MANAGER, SRI. N. LAKSHMIPATHY. …APPELLANT (BY SRI. C M DESAI, ADVOCATE) AND: 1. M/S. SHREE GANESH STEEL ROLLING MILLS LTD 14-A, ENNORE HIGH ROAD Digitally signed by DHAKSHAYINI R Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:54936 CRL.A No. 241 of 2019 C/W CRL.A No. 242 of 2019 THIRUVOTTIYUR, CHENNAI - 600019 REP BY ITS DIRECTOR - SHRI ASHOKKUMAR SARAF 2. ASHOK KUMAR SARAF DIRECTOR M/S SHREE GANESH STEEL ROLLING MILLS LTD 14-A, ENNORE HIGH ROAD THIRUVOTTIYUR, CHENNAI - 600019 ALSO AT NO.148, POONTHEMALEE HIGH ROAD BEHIND APPOLO 1ST MED HOSPITAL KILPAUK CHENNAI - 600010 3. MRS. RUCHIRA SARAF DIRECTOR, M/S. SHREE GANESH STEEL ROLLING MILLS LTD., 14-A, ENNORE HIGH ROAD, THIRUVOTTIYUR, CHENNAI-600 019, ALSO AT: NO.148, POONTHEMALEE HIGH ROAD, BEHIND APPLO 1ST MED HOSPITAL, KILPAUK, CHENNAI-600 010. …RESPONDENTS (BY SRI. NISCHAL DEV B R., ADVOCATE FOR R1 & R2; VIDE ORDER DATED:9.10.2019 NOTICE TO R3 IS DISPENSED WITH) CRL.A. FILED U/S.378(4) CR.P.C PRAYING TO SET ASIDE THE JUDGMENT/ORDER OF ACQUITTAL DATED 15.12.2018, PASSED BY THE LEARNED XXV A.C.M.M.,IN C.C.NO.7644/2016, ACQUITTING THE RESPONDENTS/ACCUSED FOR THE OFFENCE P/U/S 138 OF THE N.I ACT. - 3 - HC-KAR NC: 2025:KHC:54936 CRL.A No. 241 of 2019 C/W CRL.A No. 242 of 2019 IN CRL.A NO. 242/2019 BETWEEN: 1. M/S. STCL LIMITED (A GOVERNMENT OF INDIA UNDERTAKING) FORMERLY HAVING THEIR OFFICE AT NO. 166/2, 13TH MAIN ROAD, VASANTHNAGAR, BANGALORE-560 052. PRESENTLY AT: "CHANDRODAYA", NO.10/1, 2ND MAIN, 30TH CROSS, 7TH BLOCK, JAYANAGAR, BANGALORE-560 070. REPRESENTED BY ITS PRESENT GENERAL MANAGER, SRI. N. LAKSHMIPATHY. ...APPELLANT (BY SRI. C M DESAI, ADVOCATE) AND: 1. M/S SHREE GANESH STEEL ROLLING MILLS LTD 14-A, ENNORE HIGH ROAD THIRUVOTTIYUR, CHENNAI - 600019 REP BY ITS DIRECTOR SHRI ASHOKKUMAR SARAF 2. ASHOK KUMAR SARAF DIRECTOR M/S SHREE GANESH STEEL ROLLING MILLS LTD 14-A, ENNORE HIGH ROAD THIRUVOTTIYUR, CHENNAI - 600019 - 4 - HC-KAR NC: 2025:KHC:54936 CRL.A No. 241 of 2019 C/W CRL.A No. 242 of 2019 ALSO AT NO 148, POONTHEMALEE HIGH ROAD BEHIND APPOLO 1ST MED HOSPITAL KILPAUK CHENNAI - 600010 3. MRS. RUCHIRA SARAF DIRECTOR, M/S. SHREE GANESH STEEL ROLLING MILLS LTD., 14-A, ENNORE HIGH ROAD, THIRUVOTTIYUR, CHENNAI-600 019, ALSO AT: NO.148, POONTHEMALEE HIGH ROAD, BEHIND APPLO 1ST MED HOSPITAL, KILPAUK, CHENNAI-600 010. ...RESPONDENTS (BY SRI. NISCHAL DEV B R., ADVOCATE FOR R1 & R2; SRI. U. J. HARIPRASAD, ADVOCATE FOR R3) CRL.A. FILED U/S.378(4) CR.P.C PRAYING TO SET ASIDE THE JUDGMENT AND ORDER OF ACQUITTAL DATED 15.12.2018 PASSED BY THE XXV ADDL.C.M.M., BENGALURU IN C.C.NO.7645/2016 - ACQUITTING THE RESPONDENT/ACCUSED FOR THE OFFENCE P/U/S 138 OF N.I. ACT. THESE APPEALS, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 5 - HC-KAR NC: 2025:KHC:54936 CRL.A No. 241 of 2019 C/W CRL.A No. 242 of 2019 CORAM: HON'BLE MR. JUSTICE G BASAVARAJA ORAL JUDGMENT 1. These appeals are filed by the appellant/complainant being aggrieved by the Judgment of acquittal dated 15.12.2018 passed in CC No.7644/2016 and CC No.7645/2016 by the XXV Addl. Chief Metropolitan Magistrate, Bangalore (for short "the trial Court"). 2. The Hon'ble Supreme Court in the case of CELESTIUM FINANCIAL v. A GNANASEKARAN ETC. reported in 2025 SCC ONLINE SC 1320, at paragraph 10 of the judgment, has observed as under: "10. As already noted, the proviso to Section 372 of CrPC was inserted in the statue book only with effect from 31.12.2009. The object and reason for such insertion must be realised and must be given its full effect to by a court. In view of the aforesaid discussion, we hold that the victim of an offence has the right to prefer an appeal under the proviso to Section 372 of CrPC, irrespective of whether he is a complainant or not. Even if the victim of an offence is a complainant, he can - 6 - HC-KAR NC: 2025:KHC:54936 CRL.A No. 241 of 2019 C/W CRL.A No. 242 of 2019 still proceed under the proviso to Section 372 and need not advert to sub-section (4) of Section 378 of Cr.PC." 3. In the light of the Hon'ble Supreme Court's recent clarification of the legal position, it is now evident that the appellant, being the complainant under Section 138 of Negotiable Instruments Act, 1881, is also entitled to file an appeal against the judgment of acquittal passed by the trial Court before the Sessions Court, since he is considered to be a victim. If this Court were to proceed to hear and decide these appeals at this stage, it could deprive the parties of an available forum, i.e. this Court, for further challenge. 4. Similar view has been taken by the High Court of Andhra Pradesh in CHARBEL INDIA V. STATE OF ANDHRA PRADESH reported in 2025 SCC ONLINE AP 2815; by the High Court of Madhya Pradesh in MANORAMA KANKANE v. NARENDRA KUMAR SHUKLA rendered in Criminal Appeal No.5910 of 2025 decided on 03rd July, 2025; and in the case of M/S. LATA KISAN SEWA KENDRA v. PRITAM SINGH reported in 2025 SCC ONLINE MP 4818; and in SMT. URMIT MADRAH v. SAMARPAN JAIN rendered Criminal Appeal No. 11872 of 2022 decided on 21st July, 2025; the decision of High Court of - 7 - HC-KAR NC: 2025:KHC:54936 CRL.A No. 241 of 2019 C/W CRL.A No. 242 of 2019 Chattisgarh in NEELAM SAHU v. NARADNAGWANSHI rendered in ACQA No. 340 of 2018 decided on 16th July, 2025; and in SMT. KIRTI KURIAN v. AJAY SINGH rendered in ACQA No. 198 of 2019 decided on 16th July, 2025; the judgment of this Court in the case of SIDAGONDAPPA v. SHAFI AHAMAD rendered in CRL.A. No. 20021/2018 decided on 31st July, 2025 and in SRI T.H. LENKAPPA v. SRI SANJAY AND ANOTHER rendered in Criminal Appeal No.146 of 2015 decided on 23rd July, 2025; the decision of High Court of Delhi in the case of D.K. ASSOCIATES v. SHANKAR AND ANOTHER rendered in Criminal Appeal No.694 of 2016 decided on 13th November, 2025 and the decision rendered by the Co-ordinate Bench of this Court in the case of M/S. ANANYA ENTERPRISES v. SRI G.S. GOPALAKRISHNA rendered in Criminal Appeal No.100171 of 2016 decided on 24th November, 2025. An overall assessment of the aforestated decisions reveals that the decision of the Hon'ble Supreme Court in the case of CELESTIUM FINANCIAL (supra) has been relied upon by this Court, as well as other High Courts across the country. - 8 - HC-KAR NC: 2025:KHC:54936 CRL.A No. 241 of 2019 C/W CRL.A No. 242 of 2019 5. Considering the above, it is deemed fit that these appeals be transferred to the concerned appellate Court of Sessions and be considered as an appeal under the proviso to Section 413 of BNSS, 2023 (formerly Section 372 of Cr.PC) and numbered accordingly. Accordingly, I proceed to pass the following: O R D E R i. Registry is directed to transfer the entire record of the case, including the requisitioned copies of the trial court Records, to the concerned Principal District & Sessions Judge, who may assign it to the concerned Appellate Court having the jurisdiction and for which purpose, it would be listed before the Principal District & Sessions Judge; ii. The concerned transferee court is directed to issue Court notice to both the parties to appear before the concerned Court, and the concerned Court, thereafter, shall proceed with the case in accordance with law; iii. In case there are applications pending for condonation of delay or any other pending applications, the same also be transferred to - 9 - HC-KAR NC: 2025:KHC:54936 CRL.A No. 241 of 2019 C/W CRL.A No. 242 of 2019 be considered by the learned Judge of transferee Court, in accordance with law; iv. Considering the matter has been pending for considerable time, the Appellate Court is requested to make an endeavour to dispose of the matters as expeditiously as possible; v. The appellant is permitted to carry out necessary amendment in the cause-title and also the provisions thereof; vi. It is made clear that this Court has not made any observations as to the merits of the case and all rights and contentions of the parties are left open to be agitated before the Court concerned. 6. In the light of the above observation and directions, appeals stand disposed of. Sd/- (G BASAVARAJA) JUDGE KBM List No.: 2 Sl No.: 88