The ingredients of the offence of possession of counterfeit currency with intent to use it as genuine under Section 489-C, I. P. C. are knowledge or reason to believe that the notes are counterfeit and intention to use the same as genuine or that it might be used as genuine.

ANANTANARAYANA AYYAR, J.

( 1 ) THIS revision has been filed by Guggilla Satyanarayana, the sole accused in S. C. No. 28 of 1958. He was charged before the Assistant Sessions Judge, Warangal with offences under Sections 489-B and 489-C, I. P. C. The learned Assistant Sessions Judge found the accused guilty of both the offences and sentenced him to three years rigorous imprisonment on each count. The accused filed C, A. No. 233 of 1958 before the Sessions Judge, Warangal. The latter set aside the conviction and sentence under Section 489-B. I. P. C. but confirmed the conviction and sentence under Section 489-C. I. P. C. The petitioner feels-aggrieved with the conviction and sentence which have thereby been confirmed and has, therefore, preferred this revision petition.

( 2 ) THE prosecution case, supported by six witnesses, was to the following effect. Ramakka (P. W. 4) complained to P. Ws. 2 and 3 who were workers in a mill at Warangal, that the accused owed her a gold maim and had not returned it, in spite "of demand. P. Ws. 2 and 3 went to Ladal village on 14-1-1958 and questioned the accused about the matter. The accused brought a mediator, one B. Istari (not examined as witness), represented that the jewel was not available with him and offered to pay its value, namely Rs. 240. 00. Accordingly, the accused also agreed to pay the interest of Rs. 60. 00demanded by them. The accused then gave thirty ten-rupee currency notes. P. Ws. 2 and 3 examined the currency notes, suspected that those notes were not genuine and returned them to the accused. The accused promised to return the jewel or money in a day or two. P. Ws. 2 and 3 informed P. W. 4 and then went away.

( 3 ) NEXT day at about 4 p. m. P. W. 6, the C. I. of Police, went to the village on information that the accused was in possession of counterfeit notes of ten-rupee denomination. He sent a memo to the Station House Officer, Atmakur to register a case and he took up investigation. He reached Ladal village with the S. I. of Police at 5-30 p. m. , sent for the accused and questioned him in the presence of two mediators, P. W. 5 and Istari. The accused then gave a statement which the C. I. of Police reduced to writing as Ex. P-7. . In pursuance of that statement, the accused took are C. I. of Police (P. W. 6), P. W. 5 and others to his house, left them on the front pial, went inside the house and brought out a small steel case and opened it with a key, which he took out from his pocket. The accused then took out from inside the box, thirty ten-rupee notes (M. O. I) and produced them before P. W. 6, The C. I, of Police seized them by means of a Panchayatnama, Ex. P-7.

( 4 ) THE currency expert, P. W. 1 found the counterfeit notes to be false. Eight of the currency notes bore the identical No. A/23-185307. The other twenty-two notes bore the identical No. A/23-853071, They did not bear water-mark of lettering. The State Emblem was embossed but not borne as water mark.

( 5 ) WHEN questioned in the committing Court and the trial Court, the accused denied having made statement to the C. I. of police, and produced M. O. I and alleged that the version of P. Ws. 2, 3 and 4 was totally false and that he (accused) did not owe any jewel or money to P. W. 4 at all. He examined two defence witnesses, D. W. 1 deposed that the accused was taken away by the C. I. of police, when the accused was at the house of Mali Patel. D. W. 2 deposed that P. W. 4s husband owed the accused same money and that he (accused) demanded it from P. W. 4.

( 6 ) THE learned Assistant Sessions Judge believed that the prosecution had proved both offences beyond reasonable doubt and that the defence evidence did not rebut the prosecution evidence. He accordingly convicted and sentenced the accused. On appeal, the learned Sessions Judge held regarding the conviction under Section 489-B I. P. C. as follows; "the evidence of P. Ws. 2 and 3 that these notes are offered to them and that they were refused en the basis o

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