Case Note & Summary
The appellants, Allauddin Jallauddin Shaikh and Mamaruddin Mohammad Shaikh, were convicted by the Adhoc Additional Sessions Judge at Sewree, Greater Bombay in Sessions Case No.419 of 2009 for offences under Section 489C read with Section 34 of the Indian Penal Code (IPC) and sentenced to rigorous imprisonment for 5 years and fine of Rs.5,000 each. They were acquitted of the offence under Section 120B IPC. The prosecution case was that on 31 March 2009, based on secret information, a police raid was conducted at Gokul Hotel, Sewree, where the appellants were found in possession of 18 counterfeit currency notes of Rs.1000 denomination. The appellants challenged the conviction on grounds that the evidence was insufficient and that the mandatory provisions of the Code of Criminal Procedure were not complied with. The High Court examined the testimonies of prosecution witnesses, including the police constable (PW1), panch witness (PW2), and investigating officer (PW3). The court found that the recovery of counterfeit notes from the appellants was proved beyond reasonable doubt, and the presumption under Section 489C IPC regarding knowledge of the counterfeit nature was correctly applied. The court also noted that the appellants failed to provide any explanation for their possession. Consequently, the appeal was dismissed, and the conviction and sentence were upheld.
Headnote
A) Criminal Law - Counterfeit Currency - Possession - Section 489C IPC - The appellants were convicted for possessing 18 counterfeit currency notes of Rs.1000 denomination recovered from their person. The court held that the prosecution proved possession beyond reasonable doubt through credible testimony of police and panch witnesses, and the presumption under Section 489C IPC regarding knowledge of counterfeit nature was rightly applied. (Paras 1-12) B) Evidence Act - Presumption - Knowledge of Counterfeit - Section 489C IPC - The court held that once possession of counterfeit currency is established, the burden shifts to the accused to explain how they came into possession, and in absence of explanation, presumption of knowledge applies. (Paras 8-10)
Issue of Consideration
Whether the conviction of the appellants under Section 489C read with Section 34 IPC for possession of counterfeit currency notes is sustainable based on the evidence on record.
Final Decision
Appeal dismissed. Conviction and sentence under Section 489C read with Section 34 IPC upheld.
Law Points
- Possession of counterfeit currency notes
- Section 489C IPC
- presumption of knowledge
- recovery from person
- corroboration of evidence





