Case Note & Summary
The appellants, Karim Abdul Shaikh and Rahul Ayodyaprasad Gupta, were convicted by the Additional Sessions Judge, Greater Bombay, in Sessions Case No. 872/2013 for the offence punishable under Section 489-B of the Indian Penal Code (IPC) for using as genuine forged or counterfeit currency notes. They were sentenced to rigorous imprisonment for 5 years and fine. The case arose from an incident on 23rd April 2013, when the appellants were apprehended by the police at Kanjurmarg while attempting to purchase a mobile phone using counterfeit currency notes of Rs. 1000 denomination. The police recovered 10 counterfeit notes from appellant no.1 and 5 from appellant no.2. The appellants were illiterate labourers who claimed they received the notes as payment for their work and were unaware that the notes were counterfeit. The trial court convicted them, holding that the mere use of counterfeit notes was sufficient. On appeal, the Bombay High Court examined the evidence and found that the prosecution had failed to prove that the appellants knew or had reason to believe the notes were counterfeit. The court noted that the appellants were poor labourers with no expertise in detecting counterfeit currency, and their explanation was plausible. The court held that the essential ingredient of mens rea under Section 489-B IPC was not established. Consequently, the court allowed the appeal, set aside the conviction and sentence, and acquitted the appellants. The court also disposed of the interim application for separation of appeal as infructuous.
Headnote
A) Criminal Law - Counterfeit Currency - Section 489-B Indian Penal Code, 1860 - Knowledge Requirement - The appellants were convicted for using counterfeit currency notes. The court held that to sustain a conviction under Section 489-B IPC, the prosecution must prove that the accused knew or had reason to believe the notes were counterfeit. Mere possession or use of counterfeit notes is insufficient. The court found that the prosecution failed to establish the requisite mens rea, as the appellants were illiterate labourers who received the notes as payment and had no means to detect forgery. The conviction was set aside and the appellants were acquitted. (Paras 1-14) B) Criminal Law - Benefit of Doubt - Section 489-B Indian Penal Code, 1860 - Acquittal - The court observed that the prosecution's case was based on circumstantial evidence and the appellants' explanation that they received the notes as payment was plausible. In the absence of any evidence that the appellants knew the notes were counterfeit, they were entitled to the benefit of doubt. The appeal was allowed and the appellants were acquitted. (Paras 10-14)
Issue of Consideration
Whether the conviction of the appellants under Section 489-B of the Indian Penal Code for using as genuine forged or counterfeit currency notes is sustainable in the absence of proof that they knew or had reason to believe the notes were counterfeit.
Final Decision
The appeal is allowed. The judgment and order dated 26th February 2016 passed by the Additional Sessions Judge, Greater Bombay in Sessions Case No. 872/2013 is set aside. The appellants are acquitted of the offence punishable under Section 489-B of the Indian Penal Code. Their bail bonds stand cancelled. The interim application for separation of appeal is disposed of as infructuous.
Law Points
- Section 489-B IPC requires proof of knowledge or reason to believe that the currency notes are counterfeit
- Possession of counterfeit currency alone is not sufficient for conviction under Section 489-B IPC
- Benefit of doubt must be given when prosecution fails to prove mens rea
