Case Note & Summary
The appellant, Mohammad Yunus Abdul Mannan Shaikh, was convicted by the Additional Sessions Judge, Shrirampur, for an offence under Section 489(B) of the Indian Penal Code for allegedly using a counterfeit Rs. 1,000 note to purchase a pair of chappals. The incident occurred on 25 September 2011 when the appellant entered the shoe shop of Ravindra Shende and offered a Rs. 1,000 note for a purchase of Rs. 100. The complainant suspected the note was fake, detained the appellant, and called the police. Two counterfeit notes were recovered from the appellant. The trial court convicted him, leading to this appeal. The High Court examined whether the prosecution had proved the essential ingredient of mens rea—that the appellant knew or had reason to believe the notes were counterfeit. The court noted that the appellant was a young labourer from Jharkhand, and there was no evidence that he had any prior knowledge or involvement in counterfeiting. The circumstances, such as the appellant entering another shop where the note was refused due to lack of change, did not establish his knowledge. The court held that the prosecution failed to discharge its burden of proof regarding the appellant's guilty knowledge. Consequently, the appeal was allowed, the conviction was set aside, and the appellant was acquitted.
Headnote
A) Criminal Law - Counterfeit Currency - Section 489(B) IPC - Mens Rea - The prosecution must prove that the accused knew or had reason to believe the currency note was counterfeit at the time of using it as genuine. Mere possession or use of a counterfeit note without such knowledge does not constitute the offence. (Paras 1-4) B) Evidence - Burden of Proof - Section 489(B) IPC - The burden lies on the prosecution to establish the guilty knowledge of the accused. In the absence of direct evidence or circumstances pointing to such knowledge, the accused is entitled to acquittal. (Paras 2-4)
Issue of Consideration
Whether the conviction of the appellant under Section 489(B) of the Indian Penal Code for using as genuine a forged or counterfeit currency note is sustainable when the prosecution failed to prove that the accused knew or had reason to believe the note was counterfeit.
Final Decision
Appeal allowed. Conviction and sentence set aside. Appellant acquitted of the offence under Section 489(B) IPC.
Law Points
- Section 489(B) IPC requires mens rea
- knowledge or reason to believe that the currency note is counterfeit
- burden of proof on prosecution
- circumstantial evidence insufficient




