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2011 Supreme(Online)(Chh) 70

CHHATTISGARH HIGH COURT
S.P. Singh, J
Kurukshetra Sena and Others v. State of Chhattisgarh
Criminal Appeal No. 2/2004|Criminal Appeal No. 22/2004|Criminal Appeal No. 43|Criminal Appeal No. 52/2004



Possession of counterfeit currency requires proof of mens rea; mere possession is insufficient for conviction under relevant IPC sections.

Headnote:(A) Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 - Sections 3(i)(v) - Indian Penal Code - Sections 489B, 489C, and 120B - Conviction of multiple appellants for trafficking and possession of counterfeit currency notes - The appellants were found guilty based on evidence of possession of counterfeit notes, but the court emphasized the need for mens rea for a valid conviction - Main issue was whether the prosecution proved knowledge of possession of counterfeit currency - The prosecution failed to establish conspiracy among the accused - Appeals allowed in part with modifications to convictions and sentences. (Paras 2, 12, 30, 32)

Facts of the case:
Multiple appellants were convicted after the seizure of counterfeit currency notes, alleged to have passed them knowingly during a transaction involving a railway worker.

Findings of Court:
The conviction was sustained for the main appellants, but the charges regarding conspiracy were dropped due to insufficient evidence linking them.

Issues: The core issue was the requirement of proving knowledge regarding the counterfeit nature of the currency notes during possession.

Ratio Decidendi: Court ruled that mere possession of counterfeit currency is not sufficient for conviction; the prosecution must prove that the accused intentionally possessed it as genuine.

Result: Conviction upheld for Narendra Kumar Jain under S.489B and S.489C; other convictions modified under S.489C.

Table of Content
1. overview of appeals and convictions. (Para 1 , 2)
2. contention regarding lack of evidence for conviction. (Para 3)
3. factual background and prosecution's case. (Para 4 , 5 , 6)
4. court's evaluation of evidence. (Para 8 , 9 , 20 , 22)
5. defense arguments and legal precedents. (Para 10 , 11 , 12 , 13 , 14)
6. evidence related to counterfeit currency. (Para 16 , 17 , 18 , 19)
7. need for proof of intent in counterfeit cases. (Para 26 , 27 , 28)
8. court's rationale behind conviction. (Para 30 , 31)
9. final judgment and sentencing decision. (Para 33)

1. Criminal Appeal No. 2/2004 filed by Kurukshetra Sena, Criminal Appeal No. 22/2004 filed by Narendra Kumar Jain, Criminal Appeal No. 43 filed by Rawalmal Jain and Criminal Appeal No. 52/2004 filed by Narsingh Lal Maheshwari, Babulal Inadi and T. Appal Suri are arising out of the judgment of conviction and order of sentence dated 10-12-2003 passed by the Special Judge under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 , Jagdalpur, in Sessions Trial No. 107/2002, therefore, they are being disposed of by this common judgment.

2. The aforesaid criminal appeals are directed against the judgment of conviction and order of sentence dated 10-12-2003 passed by the Special Judge under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 , Jagdalpur, in Sessions Trial No. 107/2002, whereby and whereunder learned Special Judge after holding appellant Narendra Kumar Jain guilty for the offence punishable under S.489B and S.489C read with S.120B of the Indian Penal Code sentenced him to undergo rigorous imprisonment for three years and to pay fine of Rs. 10,000/-, in default of payment of fine to further undergo rigorous imprisonment for nine months and rigorous imprisonment for two years and six months and to pay fine of Rs. 6000/-, in default of payment of fine to further undergo rigorous imprisonment for nine months and appellants Narsingh Lal, Kurushetra Sena, Babulal Inadi, Rawalmal Jain and T. Appal Suri guilty for the offence punishable under S.489C read with S.120B of the Indian Penal Code and each of them have sentenced to undergo rigorous imprisonment for two years and six months and to pay fine of Rs. 7000/-, in default of payment of fine to further undergo rigorous imprisonment for nine months, respectively.

3. Conviction is impugned on the ground that without there being any evidence, especially conscious possession of fake currency notes with intent to use the same as genuine, the Court below has convicted and sentenced the appellants as aforementioned the (and) thereby committed illegality.

4. Case of the prosecution, in brief, that Rainu (PW 4) working as Gangman in Railway Department posted at Tokapal received his salary from his department containing currency note of Rs. 500/-, he contacted to appellant Narendra Jain for change of Rs. 500/-, appellant Narendra gave 5 currency notes of Rs. 100/- denomination. After taking the same, Rainu (PW 4) went to chicken shop and paid Rs. 100/-, then chicken shopkeeper asked to show other currency notes and after perusing the same, shopkeeper told that currency notes are not genuine and are counterfeit. Other persons also present there. Station House In charge Frejerpur G. N. Singh (PW 7) was on patrolling near railway station, Takapal, Rainu (PW 4) made a complaint relating to the aforesaid fake currency notes and lodged dehati nalishi vide Ext. P / 15.5 currency notes were seized from Rainu Ext. P / 17. During the course of investigation, investigating Officer interrogated appellant Narendra Kumar Jain and seized 13 currency notes of Rs. 500/-, 46 currency notes of Rs. 100/-, 12 currency notes of Rs. 50/- and another 4 currency notes of Rs. 100/- vide Ext. P / 19. He also seized 15 currency notes of Rs. 500/-, 103 currency notes of Rs. 100/-, 5 currency notes of Rs. 50/-, 4 currency notes of Rs. 10/-, 2 slips containing names of the persons, another 5 currency no


































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