IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
DEVASHIS BARUAH, J.
Ajmal Hussain – Appellant
Versus
State of Mizoram – Respondent
Crl. Appeal No. 19 of 2024
Decided On : 23-10-2024
Code of Criminal Procedure, 1973 - Section 374(2) - Indian Penal Code - Sections 489B and 489C - Appeal against conviction for possession and use of counterfeit currency notes - Prosecution failed to prove mens rea required for conviction under Sections 489B and 489C - Conviction set aside. (Paras 12, 13, 16)
(B) Criminal Law - Burden of proof - The prosecution must establish beyond reasonable doubt that the accused had knowledge or reason to believe that the currency notes were counterfeit - Failure to do so results in acquittal. (Paras 14, 15)
Facts of the case:
The appellant was convicted for possessing counterfeit currency notes amounting to Rs.16,05,000/- but argued that the prosecution failed to prove possession and knowledge of the notes being counterfeit. (Paras 2, 4, 8)
Findings of Court:
The court found that the prosecution did not establish that the appellant had knowledge or reason to believe the currency notes were counterfeit, leading to the conclusion that the conviction could not be sustained. (Paras 15, 16)
Issues: The main issues were whether the appellant possessed the counterfeit notes and whether he had the requisite knowledge or belief regarding their authenticity. (Paras 6, 14)
Ratio Decidendi: The court ruled that without proving the mens rea, the conviction under Sections 489B and 489C could not stand, emphasizing the necessity of establishing knowledge or belief regarding the counterfeit nature of the currency. (Paras 13, 15)
Result: Appeal allowed; conviction and sentence set aside. (Para 16)
JUDGMENT :
DEVASHIS BARUAH, J.
1. Heard Mr. Z. Kamar, the learned Senior counsel assisted by Mr. T.A. Choudhury, the learned counsel appearing on behalf of the Appellant and Ms. Mary L. Khiangte, the learned Additional Public Prosecutor appearing on behalf of the State of Mizoram.
2. This is an appeal filled under Section 374(2) of the Code of Criminal Procedure, 1973 (for short “the Code”) challenging the judgment and order dated 07.03.2024 as well as the sentence dated 20.03.2024 passed by the learned Fast Track Court, Kolasib, Mizoram (for short “the learned Trial Court”) in S.C. (K) No. 35/2019 arising out of Vairengte P.S. Case No. 38/2017 registered under Sections 489B/489C of the Indian Penal Code whereby the learned Trial Court had convicted the Appellant under Section 489B to suffer simple imprisonment for a period of 6 (six) years and to pay a fine of Rs.50,000/-, in default of payment of fine, to undergo further simple imprisonment for a period of 3 (three) months and also sentenced under Section 489C of the Indian Penal Code to suffer simple imprisonment for a period of 3 (three) years and to pay a fine of Rs.50,000/- in default, to further undergo simple imprisonment for a period of 3 (three) months and both the sentences were to run concurrently.
3. For deciding the appeal, it is relevant to take note of the brief facts which led to the filing of the instant appeal.
4. The case of the prosecution is that on 06.07.2017 at around 2:30 PM, one Mr. Zoramsanga Sailo, SI of Police, Special Narcotics Police Station Aizawl submitted a First Information Report to the Officer In-charge of Vairengte Police Station to the effect that on the same day at around 2 PM, a police team under his command recovered/seized huge number of currency notes suspected as Fake Indian Currency Notes (for short “FICN’’) from the possession of the Appellant at Kawngthar, Veng, Vairengte. As per the FIR, the suspected FICN were 434 notes of Rupees 2000 denomination and 1465 notes of Rupees 500 denomination totaling to Rs.16,05,000/-. The said suspected FICN were seized and on the basis thereof, a VRT P.S. Case No. 38/2017 dated 06.07.2017 was registered under Sections 489B/489C of the Indian Penal Code. The appellant was also arrested.
5. The Investigating Officer thereupon carried out investigation and also sent the seized articles under proper escort to the FSL Aizawl for scientific examination. The FSL Aizawl submitted a report stating inter alia that the seized Rs.500 currency which were marked as Q-1389 to Q-1818 and the seized Rs.2000 currency notes marked as Q-1 to Q-1387 were found to be counterfeit except the denominations marked as Q-1819 and Q-1388. On the basis of the said report and the investigation being carried out, a charge sheet was submitted under Section 489B/489C of the IPC.
6. Pursuant thereto, the Chief Judicial Magistrate, Kolasib sent the records on committal under Section 209 of the Code to the learned Trial Court as the case was exclusively triable by the Court of the learned Sessions Judge, Kolasib. During the trial, the prosecution examined 6 witnesses while the Appellant did not examine any defence witness. The learned Trial Court on the basis of the evidence as well as upon hearing the learned counsels, framed three points for determination which are enumerated herein under:
(ii) Whether the seized currency notes were Fake Indian Currency Notes?
(iii) Whether the accused is liable to be convicted and sentenced under the charged sections of laws?”
7. The learned Trial Court vide the impugned judgment and order dated 07.03.2024 held that the seized FICN denominations were seized from the possession of the Appellant as well as also opined that the seized currency notes were Fake Indian Currency Notes. On the basis thereof, the learned Trial Court also opined
The prosecution must prove beyond reasonable doubt that the accused had knowledge or reason to believe that currency notes were counterfeit to sustain a conviction under IPC Sections 489B and 489C.
The court ruled that possession of counterfeit currency notes does not alone establish guilt; intention to use them as genuine must be proven alongside accountability for their possession.
Possession of forged or counterfeit currency-notes or bank-notes - Conviction modified - Prosecution prove charges under S. 489C of IPC. As far as charges of S. 489B of IPC prosecution could neither ....
The main legal point established in the judgment is that the failure to reframe the charges and give the appellants an opportunity to respond to the charges of trafficking or transportation of counte....
The central legal point established in the judgment is the requirement of 'knowledge or reason to believe' in establishing guilt for the offences under Section 489-B and 489-C of the RPC, emphasizing....
Point of Law : Section 489-C of IPC deals with possession of forged or counterfeit currency notes or banknotes.
Point of Law : Possession mensrea - A perusal of the provisions, extracted above, shows that mensrea of offences under Sections 489- B and 489-C is, "knowing or having reason to believe currency note....
Possession of counterfeit currency alone does not warrant conviction under IPC Section 489A; trafficking established through possession leads to conviction under Sections 489B and 489C.
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