Case Note & Summary
The petitioner, Sanskriti Jayantilal Salia, filed a criminal writ petition under Article 226 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR No. 22 of 2017 registered at Parksite Police Station, Vikhroli, Mumbai, for offences under Sections 489B and 489C of the Indian Penal Code, 1860 (IPC). The FIR was lodged by Smt. Dipika Prakash Amin, a bank cashier at Saraswat Cooperative Bank Ltd., alleging that on 19 December 2016, the petitioner deposited old currency notes totaling Rs. 40,500, out of which five notes (three of Rs. 1,000 and two of Rs. 500) were found to be counterfeit when placed in a Fake Note/Counterfeit Money Detector Machine. The petitioner informed the bank that the notes were her savings and she was depositing them in the wake of demonetization. The bank filed a complaint, and the police registered the FIR. The petitioner contended that she had no knowledge that the notes were counterfeit and that she was a victim of circumstances. The State opposed the petition, arguing that the investigation revealed the notes were counterfeit and that the petitioner had deposited them. The High Court examined the essential ingredients of Sections 489B and 489C IPC, noting that both sections require the accused to 'know or have reason to believe' that the currency notes are counterfeit. The court found that the FIR and charge sheet contained no material to suggest that the petitioner had such knowledge. The petitioner had voluntarily deposited the notes during demonetization, and there was no evidence of any criminal intent or prior knowledge. The court held that continuing the proceedings would be an abuse of process and quashed the FIR and all consequential proceedings.
Headnote
A) Criminal Law - Counterfeit Currency - Section 489B IPC - Mens Rea - Essential Ingredient - The offence under Section 489B IPC requires that the accused 'knows or has reason to believe' the currency notes are counterfeit. Mere possession or use of counterfeit notes without knowledge does not constitute the offence. The prosecution must prove guilty knowledge. (Paras 6-10) B) Criminal Law - Counterfeit Currency - Section 489C IPC - Possession - Knowledge Requirement - Section 489C IPC also requires that the accused 'knows or has reason to believe' the notes are counterfeit. Possession simpliciter without knowledge is not an offence. (Paras 6-10) C) Criminal Procedure - Quashing of FIR - Inherent Powers - Section 482 CrPC - Lack of Prima Facie Case - Where the FIR and charge sheet do not disclose any material to show that the accused had knowledge that the notes were counterfeit, the proceedings are an abuse of process and liable to be quashed. (Paras 11-13)
Issue of Consideration
Whether the FIR and criminal proceedings against the petitioner for offences under Sections 489B and 489C of the Indian Penal Code can be quashed when there is no material to show that the petitioner had knowledge that the currency notes deposited by her were counterfeit.
Final Decision
The petition is allowed. FIR No. 22 of 2017 registered at Parksite Police Station, Vikhroli, Mumbai, and all consequential proceedings are quashed.
Law Points
- Mens rea is essential ingredient for offence under Section 489B IPC
- Knowledge of counterfeit nature must be proved
- Possession simpliciter not sufficient
- Burden on prosecution to prove guilty knowledge
