Bombay High Court Acquits Accused in Counterfeit Currency Case Due to Lack of Mens Rea. Possession and Use of Single Counterfeit Note Without Proof of Knowledge or Fraudulent Intent Fails to Establish Offences Under Sections 489B and 489C IPC.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
  • 202
Judgement Image
Font size:
Print

Case Note & Summary

The appellant, Mohammed Shabbir, was convicted by the Additional Sessions Judge, Mumbai, for offences under Sections 489B (using as genuine a forged or counterfeit currency note) and 489C (possession of counterfeit currency) of the Indian Penal Code, 1860. The prosecution alleged that on 13 August 2008, the appellant gave a Rs.500 currency note to a waiter, Santosh Poojari, at a bar and restaurant in Bandra to pay his bill. The owner, Rajan Sharma, suspected the note was counterfeit and, after checking, took the appellant to Bandra Police Station, where the note was seized. The appellant was tried and sentenced to three years' rigorous imprisonment on each count. On appeal, the High Court noted that the appellant had already served the sentence but agreed to hear the merits. The court examined the evidence and found that the prosecution had not adduced any evidence to prove that the appellant knew the note was counterfeit or that he intended to use it as genuine. The only evidence was the recovery of the note, which the appellant claimed he received from a customer. The court held that the essential ingredient of mens rea was missing, and the conviction could not be sustained. The court acquitted the appellant, setting aside the conviction and sentence.

Headnote

A) Criminal Law - Counterfeit Currency - Sections 489B and 489C Indian Penal Code, 1860 - Mens Rea - The appellant was convicted for using and possessing a counterfeit Rs.500 note. The court held that the prosecution failed to prove that the appellant knew the note was counterfeit or had fraudulent intent. The mere possession or use of a counterfeit note, without evidence of guilty knowledge, does not constitute an offence under these sections. The court acquitted the appellant, emphasizing that mens rea is a crucial ingredient. (Paras 4-10)

B) Evidence Law - Presumption of Innocence - Benefit of Doubt - The court noted that the prosecution's case relied solely on the recovery of the note, with no evidence of the appellant's knowledge or intent. The appellant's explanation that he received the note from a customer was plausible. The court held that the benefit of doubt must be given to the accused when the prosecution fails to establish mens rea beyond reasonable doubt. (Paras 8-10)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the appellant's conviction under Sections 489B and 489C of the Indian Penal Code, 1860 (IPC) for using and possessing a counterfeit currency note is sustainable in the absence of proof of mens rea.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Appeal allowed. Conviction and sentence set aside. Appellant acquitted of all charges.

Law Points

  • Mens rea is essential for offences under Sections 489B and 489C IPC
  • Possession of counterfeit currency note alone insufficient without knowledge or fraudulent intent
  • Benefit of doubt to accused when prosecution fails to prove guilty knowledge
Subscribe to unlock Law Points Subscribe Now

Case Details

2016 LawText (BOM) (01) 69

Criminal Appeal No.662 of 2009

2016-01-18

Abhay M. Thipsay

M.K. Kocharekar i/b. Rajeev Sawant and Associates for the Appellant, Smt. M.R. Tidke, APP for the Respondent State

Mohammed Shabbir S/o. Mohammed Khurshid Shaikh

The State of Maharashtra

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Criminal appeal against conviction for offences under Sections 489B and 489C IPC

Remedy Sought

Appellant sought acquittal by challenging the conviction and sentence

Filing Reason

Appellant was convicted for using and possessing a counterfeit Rs.500 currency note

Previous Decisions

Trial court convicted the appellant and sentenced him to 3 years RI on each count

Issues

Whether the prosecution proved that the appellant knew the currency note was counterfeit (mens rea) under Section 489B IPC? Whether the possession of a single counterfeit note without proof of knowledge or intent constitutes an offence under Section 489C IPC?

Submissions/Arguments

Appellant argued that the prosecution failed to prove mens rea, and the conviction was based solely on recovery of the note without evidence of knowledge or fraudulent intent. Respondent State argued that the conviction was correct based on the evidence of recovery and the appellant's conduct.

Ratio Decidendi

For offences under Sections 489B and 489C IPC, the prosecution must prove that the accused knew the currency note was counterfeit or had fraudulent intent. Mere possession or use of a counterfeit note, without evidence of guilty knowledge, does not constitute an offence. The benefit of doubt must be given to the accused when mens rea is not established.

Judgment Excerpts

The prosecution has not adduced any evidence to show that the appellant knew that the currency note was counterfeit. The essential ingredient of mens rea is missing in the present case. The appellant is entitled to be acquitted.

Procedural History

The appellant was tried in Sessions Case No.720 of 2008 before the Additional Sessions Judge, Mumbai, convicted on 18 May 2009, and sentenced to 3 years RI under Sections 489B and 489C IPC. He appealed to the Bombay High Court, which heard the appeal on 18 January 2016.

Acts & Sections

  • Indian Penal Code, 1860 (IPC): 489B, 489C
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Upholds Educational Institution in Attendance Regulation Dispute Under Patna University Act, 1951. Regulation 4's 75% Attendance Requirement in Lectures, Tutorials, and Practicals Held to Apply Separately, Not Collectively; High Court's...
Related Judgement
High Court High Court of Karnataka Hears Appeal Against Conviction for Murder and Causing Disappearance of Evidence. The appeal challenges the trial court's reliance on circumstantial evidence and FSL report in convicting the accused under Sections 302 and 201 ...