IMPORTANT POINT
The possession of counterfeit currency notes, lack of explanation for such possession, and legal precedents establishing trafficking based on possession were central to the court's decision.

JUDGMENT :

The appellants are the accused in S.C.No.1948 of 2014 before the Special Court (SPE/CBI), Thiruvananthapuram. They were convicted for the offence punishable under Section 120B r/w Sections 489B and 489C of the Indian Penal Code, 1860. Assailing the said judgment, they have filed this appeal under Section 374(2) of the Code of Criminal Procedure, 1973 (Code).

2. The prosecution was initiated with the following allegations:

At about 10.00 a.m. on 22.10.2011 the 1st appellant was found in possession of counterfeit currency notes. Appellant Nos.2 to 4 were the companions of the 1st appellant. They also were found in possession of counterfeit currency notes. A child was along with the 1st appellant and three children were with the 4th appellant. They were also found in possession of counterfeit currency notes. Following are the details of the counterfeit currency notes possessed by each of the said persons:

3. On the basis of the conspiracy hatched by them for trafficking in counterfeit currency notes, they possessed the currency notes. Further, from the room in Sreedevi Lodge which was in occupation of the 2nd and 3rd appellants 75 numbers of 1000 rupee denomination counterfeit notes were recovered. From room No.2A in Kailas Lodge, which was in occupation of the 4th appellant and the children along with him, 96 numbers of 500 rupee denomination of counterfeit currency notes were recovered. Thus, the appellants and the children together possessed 139 numbers of 1000 rupee denomination and 168 numbers of 500 rupee denomination counterfeit currency notes.

4. The children in conflict with law were sent to the Juvenile Justice Home. The trial court framed charges against the appellants for the offences under Sections 120B, 489B and 489C of the IPC. They denied the charge. The prosecution has examined PWs.1 to 14 and proved Exts.P1 to P44. Exts.X1 to X5 were also marked. MOs.1 to 37 were identified. On the close of the prosecution evidence, the appellants were examined under Section 313(1)(b) of the Code. They denied the incriminating circumstances appeared against them in evidence. They further stated that they were innocent. On the defence side, DW1 was examined and Exts.D1 to D9 were marked. After hearing both sides, the trial court held that the prosecution proved the charge levelled against the appellants and proceeded to convict and sentence them.

5. Heard the learned counsel for the appellants and the learned Senior Counsel appearing for the respondent-CBI.

6. PW1 was the Sub Inspector of Police, Parassala Police Station during the relevant time. PW2 was a Civil Police Officer, PW3 was an Additional Sub Inspector, PW4 was a Grade Sub Inspector and PW5 was a Senior Civil Police Officer; all attached to the Parassala Police Station during the relevant period. PW1 deposed that at about 10.00 a.m. on 22.10.2011 he got a reliable information that two Hindi speaking persons were trying to transact counterfeit currency notes. He along with PWs.2 to 5 and other police personnel went to Idichakkaplammodu, where they found the 1st appellant and a child together. Finding that they were the persons who tried to transact counterfeit currency notes, their bodies were searched. From the 1st appellant, 19 numbers of 1000 rupee and 5 numbers of 500 rupee denomination counterfeit currency notes were found. The child was in possession of 13 numbers of 1000 rupee and 5 numbers of 500 rupee denomination counterfeit currency notes. They were in possession of genuine currency notes of various denominations also. They were