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)
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.
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


