The central legal point established in the judgment is that the accused must have knowledge or reason to believe that the currency notes were counterfeit, as required under S.489B and S.489C of the Indian Penal Code.

1. The appellant was tried by the Court of Session, Quilon for the offences punishable under S.489B and 489C of the Indian Penal Code. He has been found guilty on both the counts and was sentenced to undergo rigourous imprisonment for a period of 5 years under S.489B and for rigorous imprisonment for 3 years under S.489C IPC. Both the sentences have been ordered to run concurrently.

2. The case in short is as follows: The appellant is a person hailing from Chavakkat. It is alleged that he had some contacts with some people in Bombay and he offered to get NOC for PW1 to go to Libiya. PW1 parted with a sum of Rs. 4000/-. However, PW1 could not get NOC and he wanted to get back the amount from the appellant. The appellant's brother-in-law one Ashraf had also some plans to go to Libiya. According to the appellant himself, his brother-in-law and PW1 went to Bombay and there they met one R.K. Ali, who was running a panshop at Bombay. The appellant, PW1 and Ashraf were at Bombay for about 2 weeks and they were not successful in getting NOC The prosecution case is that the appellant managed to obtain some U.S. dollar notes from somebody in Bombay and he returned to the native place and tried to exchange these notes. However, these notes were fake currency notes and the accused was ultimately arrested by the Customs Preventive Officer. The appellant would contend that he was to get some Rs. 8000/- from R.K. Ali in connection with the NOC arrangement and this R.K. Ali refused payment. The appellant and others insisted for immediate payment and therefore R.K. Ali gave them 11 U.S. dollar notes. The appellant thinking that they were original U.S. dollar notes obtained the same and returned to Chavakkad. The appellant would also contend that he later entrusted these notes to one Ummar for exchanging the same. The appellant also contended that he believed that the dollar notes were genuine notes and that if they were not genuine notes he was duped by R.K. Ali.

3. The appellant was found in possession of fake U. S. dollar notes. PW.5 got information of the same and he informed the matter to the superior officer at Trichur. PW.5 arrested the accused. He also informed the Superintendent of Police. Later PW.8, the ASI registered a case on the basis of Ext. P1 letter given by PW4, the Superintendent of the Customs Office, Trichur. The Sub Inspector of Police, Vadanappally took over the investigation and conducted search, but he could not find any other incriminating articles. Later the investigation was taken over by PW1, the Detective Inspector. About 11/2 months after the incident PW6 a taxi driver produced two other counterfeit dollar notes. The same were recovered by him from the seat of his car.

4. On the side of the prosecution 11 witnesses were examined. All the 11 U.S. fake dollar notes were marked as MO 1 series. There was no witness on the defence side.

5. As already pointed out the appellant admitted of having obtained these U.S. dollar notes from Bombay. The appellant would contend that he obtained the same from one R.K. Ali. R.K. Ali was summoned as a witness before the Sessions Court; but he was not examined on that day, since the appellant was not present. The learned counsel for the appellant contended that the non-examination of R.K. Ali is fatal to the prosecution case. But it may be remembered that the witness appeared and was prepared to give evidence. It was because of the fault of the appellant that the witness could not be examined. Whatever be the source of this fake notes it is proved beyond reasonable doubt that the appellant had these dollar notes with him.

6. The question that would arise for consideration is whether the appellant had committed offences punishable under S.489B and C of I.P.C. S.489B, deals with the offence relating to the using of forged or counterfeit coins as genuine and the offence under S.489C is in respect of possession of forged or counterfeit notes. Mere possession or use of counterfeit