Anand Byrareddy, J.

1. Heard the learned Counsel for the appellant and the learned Additional State Public Prosecutor. The appellant was the accused, in the following circumstances:

That on 7-6-2005 at about 10.00 a.m., the Police Inspector, Market Police Station, Belgaum, received credible information that a person aged about 55 was carrying counterfeit notes from Hubli to Mumbai via Belgaum through bus. On receiving such information, the Inspector had secured two panchas in the police station and proceeded to the Central Bus Stand, Belgaum which is immediately opposite to the Market Police Station, and kept watch at the bus stand. He noticed that there was a black colour rexine bag which was kept by the side of the Row of seats. The bus going towards Kolhapur and Bombay had stopped at Platform No. 2 of the bus stand. Since the Inspector had also received information about the manner in which the suspect was dressed, he immediately spotted him and apprehended him. On searching the black rexine bag, there was another red colour small rexine bag, some cloths, Pan Card, Driving Licence of the accused. When the red bag was opened, 452 notes of Rs. 100/- denomination was found. The Inspector compared those notes with genuine notes and immediately noticed the difference in colour, quality of paper, absence of the water mark, etc. The Inspector secured the currency checking machine from Pai Hotel nearby and examined the currency notes found with the accused and with the aid of the said machine, found that all the 452 currency notes were fake. Thereafter, he immediately arrested the accused and seized the currency notes and other articles found in his possession under a panchanama and thereafter, took him to the police station along with the seized articles. His photograph was taken along with the fake currency notes and he prepared a suo motu complaint and on the basis of that, registered a case against the accused for offences punishable under Sections 489-A, 489-B and 489-C of Indian Penal Code, 1860, submitted the same to the Jurisdictional Court. The appellant was remanded to judicial custody. The statement of his staff were recorded and the seized currency notes were sent to the Treasurer, Reserve Bank of India, Bangalore, for further examination, which were examined and which were reported that the same were fake. On 8-6-2005, the statements of other witnesses were recorded and a charge-sheet was filed. The Magistrate thereafter committed the matter to the Court of Sessions Judge for trial. The Sessions Court registered the case as Sessions Case No. 237 of 2005 and on perusal of the record and after hearing the statements of the Public Prosecutor and the Counsel for the accused, the Sessions Court framed charges. The accused pleaded not guilty and claimed to be tried. The prosecution tendered evidence through Exs. P.W. 1 to P.W. 10 and marked Exhibits P. 1 to P. 11(a) and M.Os. 1 to 11 and after hearing the parties and recording the statement of the accused under Section 313 of the Code of Criminal Procedure, 1973 (hereinafter referred to 'Cr.P.C.' for brevity), and after hearing the parties at length, the Court below framed the following points for consideration:

1. Whether the prosecution has proved beyond all reasonable doubt that, on 7-6-2005 at 10.30 a.m., at KSRTC Bus Stand, Belgaum, the accused was found trafficking in or using as genuine 452 counterfeit currency notes of Rs. 100/- denomination, knowing or having reason to believe the same to be counterfeit notes?

2. Whether the prosecution has proved beyond all reasonable doubts that, the accused was found in possession of 452 counterfeit currency notes of Rs. 100/- denomination knowing or having reason to believe the same to be counterfeit and intending to use the same as genuine or that it may be used as genuine?

The Court below answered Point No. 1 in the negative and Point No. 2 in the affirmative and acquitted the appellant for the offence punishable under Sect