Point of Law : Section 489-C of IPC deals with possession of forged or counterfeit currency notes or banknotes.

JUDGMENT :

[Sanjay K. Agrawal, J.]

1. This acquittal appeal is directed against the impugned judgment dated 22-12-2003 passed by Additional Sessions Judge, Sakti, District Bilaspur in S.T. No.111/2002 by which respondents No.1 and 2 namely Abid Ali and Mohammad Hanif Chaturvedi have been acquitted from the charges under Sections 489-B and 489-C read with Section 34 of the IPC finding no ground to convict them for the aforesaid offences. This appeal has been preferred challenging the legality, correctness and validity of the impugned judgment.

2. Mr. Sudeep Verma, learned counsel for the appellant/State submits that the learned trial Court is absolutely unjustified in acquitting the respondents from the aforesaid offences whereas there is sufficient evidence available on record to convict them for the aforesaid offences as admittedly, respondent No.2 had given currency notes of denomination of 500/- for exchange in the bank, to which respondent No.1 Abid Ali had deposited in the bank. Therefore, both the respondents ought to have been convicted under Sections 489-B and 489-C of the IPC and therefore, the impugned judgment deserves to be set aside.

3. None appeared for respondents No.1 and 2.

4. We have heard learned counsel for the appellant, considered his submission and perused the material available on record with utmost circumspection.

5. The respondents have been acquitted by the trial Court from the offences under Section 489-B and 489-C of the IPC recording the following finding:-

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6. Sections 489-B and 489-C of the IPC read as under;-

489-B – Using as genuine, forged or counterfeit currency notes or bank-notes – Whoever sells to, or buy or receives from, any other person, or otherwise traffics in or uses as genuine, any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, ans all also be liable to fine.

489-C – Possession of forged or counterfeit currency-notes or bank-notes – Whoever has in his possession any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, shall be punished with imprisonment of either description for a term which may extend to seven yeas, or with fine, or with both.

7. An offence under Section 489-B has the following essential ingredients:-

1) selling, buying or receiving from any person or otherwise trafficking currency note or bank note,

2) any forged or counterfeit currency note or bank note;

3) knowing (or having reason to believe) that such note was forged or counterfeit.

8. To bring home an offence under Section 489-B of the IPC (a) the prosecution is to prove that the relevant currency note or bank note was forged or counterfeit; (b) that the accused sold to or received from, some person, or trafficked in, or used as genuine the aforesaid currency note or bank note; (c) when the accused did so, he had knowledge or reason to believe about its being forged or counterfeit. In order to sustain the conviction of an accused, the prosecution has not only to prove that he had the possession of counterfeit note, having reason to believe it as such, but also to prove circumstances which lead clearly, indubitably and irresistably to his intention to use/circulate the notes in the public. Further, the prosecution has to prove that he had intention and knowledge or having reason to believe of its being forged or counterfeit. Burden is on the prosecution to prove that the time when the accused was possessing counte