Judgement

THAKKAR, J.:- Counterfeiters all over the world must be singing in ecstasy : "if there is heaven on earth, it is here, here, here, for, according to the Kerala High Court*1, Indian law does not make counterfeiting of currency notes of any country in the world. other than that of India, an offence.

* 1. Judgment and Order rendered by the Kerala High Court in Cr. R. P. 263 of 1975 on November 17, 1976, giving rise to the present appeal by certificate of fitness under Art. 134(1)(c) of the Constitution of India.

The High Court has persuaded itself by a process of judicial activism in reverse gear, that making of such counterfeit notes is not an offence under S. 489A of the Penal Code (I.P.C.) and that having in possession such counterfeit currency notes is not an offence under S. 489C of the I.P.C. Such a view has been taken even though there is nothing in the language of these sections to warrant such an interpretation as will become evident presently.

Facts : The six respondents herein were charged with offences punishable under Ss. 120B, 489A, 489B and S. 420 read with Ss. 511 and 34, IPC. The prosecution case against them was that in furtherance of a conspiracy entered into by accused Nos. 1 to 4 to forge and counterfeit American dollar notes of 20 dollar denomination, they indulged in counterfeiting by printing 2000 such notes. Respondents 1 and 2 were further alleged to have been in possession of 148 forged currency notes knowing the same to be forged, with intent to use these forged notes as genuine. The respondents were committed by the Magistrate to stand their trial before the Sessions Court, for offences under Ss. 120-B, 489A and 489C read with Ss. 511 and 34, IPC. It was contended by the respondents-accused before the Sessions Court that a charge under Ss. 489A and 489C of the IPC could be lawfully levelled only in the case of counterfeiting of Indian currency notes and not in the case of counterfeiting of foreign currency notes. The contention was uphold by the Sessions Court at the threshold of the trial and the accused were discharged. Aggrieved by the order of the Sessions Court discharging the respondents, the petitioner (State of Kerala) filed a Revision Petition before the High Court of Kerala. The High Court by its order under appeal confirmed the order of discharge rendered by the Sessions Court holding that "in the absence of an explanation similar to that in the case of bank notes, S. 489A and the Sections that follow which relate to counterfeiting of currency notes do not apply to cases of counterfeiting of dollar bills." The petitioner thereupon filed an application under Art. 134(1)(c) of the Constitution for leave to appeal to the Supreme Court. By its order under appeal, the High Court certified it as a fit case for appeal to the Supreme Court as "the case involves considerably important questions of law as to whether counterfeit American dollar notes will fall within the purview of Ss. 489A and 489C of the Indian, Penal Code." That is how the matter has come up before this Court.

Relevant provisions : - The anatomy of the relevant provisions requires to be X-rayed at the outset. The concerned provisions may therefore be screened :-

"489A. Whoever counterfeits, or knowingly performs any part of the process of counterfeiting. any currency note or bank note, shall be punished with (imprisonment for life), or with imprisonment of either description for a term which may extend to ten years, and shall be liable to fine.

Explanation :- For the purposes of this section and of Sections 489B, (489C, 489D and 489E) the expression "bank note" means a promissory note or engagement for the payment of money to bearer on demand issued by any person carrying on the business of banking in any part of the world. or issued by or under the authority of any State or Sovereign Power, and intended to be used as equivalent to, or as a substitute for money.

3. Subs. by Act 26 of 1955, S. 117 and Sch. for "transportation for