Possession of counterfeit currency requires proof of knowledge or reason to believe the notes are counterfeit; evidence must be recorded accurately to ensure admissibility.

JUDGMENT :

(P.B. Suresh Kumar, J.) :

These appeals arise from S.C.No.3 of 2015 on the files of the Special Court for NIA Cases, Ernakulam. Among the appeals, Crl.A.No.292 of 2017 is preferred by the first accused in the case and Crl.A.No.332 of 2017 is preferred by accused 2 to 6 therein. The first accused stands convicted and sentenced for offences punishable under Sections 489B and 489C read with Section 34 of the Indian Penal Code (IPC) and accused 2 to 6 stand convicted and sentenced for the offence punishable under Section 489C read with Section 34 of IPC.

2. The accused hail from Malda District in West Bengal. The accusation against them as in the final report is that on 17.09.2012, at about 7 p.m., the first accused tendered a counterfeit Indian currency note of Rs.1000/-(the note) at a mobile shop for purchasing a recharge coupon and on examining the said note, the shop owner entertained a doubt as to the genuineness of the note and consequently, he detained the first accused and informed the matter to the police. Upon receiving information, a police party headed by the Sub Inspector of Police, Manjeri reached the shop, verified the note and having found that the note is not genuine, searched the body of the first accused and found four other identical notes in the pocket of his shirt. After seizing the notes tendered and possessed by the first accused, a case was registered against him by Manjeri Police. On interrogation after the arrest, the first accused disclosed to the Sub Inspector of Police that he has kept some more identical notes in the room where he was staying and when the Sub Inspector of Police took the first accused to his room as guided by him, he took out and handed over to the Sub Inspector of Police from a suitcase kept in the room, 45 other identical notes. When the police party went to the room of the first accused, accused 2 to 6 were present in the room. When the Sub Inspector of Police searched their body, it was found that they were also in possession of identical counterfeit currency notes. The offences alleged against the accused, in the circumstances, were the offences punishable under Sections 489B and 489C of IPC.

3. Although the case was one registered by the local police, its investigation was taken over by the CB-CID and later, having regard to the seriousness of the offences alleged against the accused, the National Investigation Agency (NIA) took over the investigation, completed the same and submitted the final report.

4. On the appearance of the accused, after completing the procedural requirements, the Special Court framed charges against them and read over and explained the same to them through a translator, to which they pleaded not guilty. Since the accused denied the charges, the prosecution examined 19 witnesses as PWs 1 to 19 and proved through them 31 documents as Exts. P1 to P31. MOs 1 to MO9 series are the material objects in the case. Thereupon, the accused were questioned under Section 313 of the Code of Criminal Procedure, 1973 (the Code) so as to enable them personally to explain the incriminating circumstances appearing against them in the evidence. They denied the evidence and maintained that they are innocent. As the case was not one fit for acquittal in terms of Section 232 of the Code, the accused were called upon thereafter to enter on their defence. The accused examined two witnesses as DW1 and DW2 and proved through DW2 a document as Ext.D1. Thereupon, on an elaborate consideration of the facts and circumstances of the case, the Special Court found the first accused guilty of the offences punishable under Sections 489B and 489C read with Section 34 of IPC and accused Nos.2 to 6 guilty of the offence punishable under Sections 489C read with Section 34 IPC. Accordingly, the accused were convicted, and the first accused was sentenced to undergo rigorous imprisonment for five years and to pay a fine of Rs.25000/-for the offence punishable under Section 489B IPC and