Case Note & Summary
The appellant, Mahendrasingh Khetsing Rao, was convicted by the 1st Additional District and Sessions Judge, Dharwad sitting at Hubli in Sessions Case No. 59 of 2011 for an offence punishable under Section 489-B of the Indian Penal Code (IPC) for attempting to deposit 10 counterfeit currency notes of Rs. 500 denomination mixed with 6 genuine notes at a bank. The prosecution alleged that on 22.02.2011 at about 12.30 p.m., the appellant was in possession of the counterfeit notes and attempted to deposit them knowing they were fake. The trial court convicted him and sentenced him accordingly. The appellant appealed under Section 374(2) of the Code of Criminal Procedure, 1973 (Cr.P.C.) before the High Court of Karnataka. The High Court examined the evidence, including the testimony of bank officials and police witnesses, and found inconsistencies regarding the recovery and seizure of the notes. The court noted that the prosecution failed to establish that the appellant had knowledge that the notes were counterfeit. The appellant's conduct did not indicate any guilty knowledge, and there was no evidence that he had attempted to use the notes elsewhere or had any connection with counterfeiting. The High Court held that the essential ingredient of mens rea under Section 489-B IPC was not proved beyond reasonable doubt. 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 beyond reasonable doubt that the accused knew the currency notes were counterfeit at the time of possession or use. Mere possession or attempted deposit of fake notes is insufficient to establish guilt. (Paras 1-10) B) Evidence - Circumstantial Evidence - Inconsistencies - The evidence of prosecution witnesses was inconsistent regarding the recovery and seizure of notes, and the accused's conduct did not indicate guilty knowledge. Held that the benefit of doubt must be given to the accused. (Paras 5-9)
Issue of Consideration
Whether the conviction of the appellant under Section 489-B of IPC for attempting to deposit counterfeit currency notes is sustainable in the absence of proof that he knew the notes were counterfeit.
Final Decision
Appeal allowed. The judgment of conviction and order on sentence passed by the 1st Additional District and Sessions Judge, Dharwad sitting at Hubli in Sessions Case No. 59 of 2011 dated 09.10.2013 and 10.10.2013 are set aside. The appellant is acquitted of the offence punishable under Section 489-B of IPC.
Law Points
- Mens rea essential for Section 489-B IPC
- Possession of counterfeit currency must be with knowledge
- Burden of proof on prosecution to establish guilty knowledge beyond reasonable doubt
