In order to attract an offence u/s. 489 B or C IPC mere possession of the counterfeit or fake notes alone is not sufficient.
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Contents

  1. 1 Sections 489 (B) and (C) read with Section 34 of the Indian Penal Code.
    1. 1.1 Gafoor v. State of Kerala (1987 (2) KLT 730)
    2. 1.2 Vijayan v. State of Kearala (2001 (2) KLT 951)
    3. 1.3 K. Hashim v. State of Tamil Nadu (AIR 2005 SC 128)
    4. 1.4 Abdul Fakirsaheb Mamtule v. State of Maharashtra (2001 Crl.L.J 3396) 
    5. 1.5 Ponnuswami v State (1995 Crl.LJ.2658)
    6. 1.6 Mammutti v. State of Karnataka (AIR 1979 SC 1705) 
    7. 1.7 Kuttan Nadar Wilson v. State rep. by the Public Prosecutor (2002 (2) KLJ 362) 
    8. 1.8 Umashanker v. State of Chhattisgarh (2001(3)KLT 681(SC)
      1. 1.8.1 18. So it is clear from the above decisions that in order to attract an offence under section 489 B or C of the Indian Penal Code, mere possession of the counterfeit or fake notes alone is not sufficient but it must be further proved that he had the intention to use the same as genuine notes and he had reason to belief that the note found to be in possession was a fake or counterfeit currency. It is also clear from the above decision that it is very difficult to adduce direct evidence on this aspect to ascertain the mens rea or intention of the accused and the same can be inferred from he circumstances and conduct of the accused and if he is not able to give any satisfactory explanation for coming into possession of such articles, then it may give an inference that he had the intention or knowledge as contemplated under Section 489 B and C of the Indian Penal Code.
    9. 1.9 Vijayachandran v. Superintendent of Police (2008 (3) KLT 307)
    10. 1.10 Gopal Mohan v.Govindan Nair (2011 (3) KLT SN4 (C.No.2) 
    11. 1.11 G.P. Nayyar v. State (Delhi admn)(AIR 1979 SC 602) 
      1. 1.11.1 23. It is true that in this case the expert who prepared Ext.P9 document has not been examined and the document shows that it will fall under section 292 of the Code as the category of person falls under that section. Further no notification has been brought to the notice of this Court issued by the government specifying the persons mentioned under section 292 of the Code but however in the decision reported in Gopal Mohan's case (cited supra) this Court has held that even without examining him that document can be marked as it is only in the nature of procedure provided under section 292 of the Code. Further marking of the document through investigating officer has not been objected as well. Further in view of the dictum laid down in Vijayachandran's case (cited supra) the document can be marked by any person and marking of the document will not only to prove the document but its contents as well. Unless the truth of the same is challenged by the defence at the time of marking they are estopped from challenging the same at the later stage. Further PW8 had categorically stated that the document was sent to Government of India Bank Note Press and Ext.P9 report has been obtained and in Ext.P9 it was mentioned that it is counterfeit notes. This aspect has not been challenged in cross examination as well. Further the accused have no case that the note seized is not fake note or counterfeit note. They have also no case either in the 313 examination or at the time of cross examining the detecting officer or investigating officer that those notes are not counterfeit notes and they have no knowledge that they are counterfeit notes and without such knowledge, they were in possession of the same. They have not given any explanation for the possession of those counterfeit notes as well. Further the court below had also examined the impugned notes and came to the conclusion that even mere looking at the notes will be sufficient to come to the conclusion that they are not genuine notes. So under the circumstances even if the expert opinion is not available, if naked eye examination of the counterfeit itself will indicate that it is a fake note or not a genuine note, then the court can rely on such fact for the purpose of coming to the conclusion that it is a fake note and in the absence of any explanation given regarding their possession, the court can infer the intention or the knowledge or require mens rea as proved under section 489C of the Indian Penal Code. 

(2014) 379 KLW 143

IN THE HIGH COURT OF KERALA AT ERNAKULAM 

PRESENT: THE HONOURABLE MR. JUSTICE K.RAMAKRISHNAN 

MONDAY, THE 17TH DAY OF NOVEMBER 2014/26TH KARTHIKA, 1936 

Crl.A.Nos.114 & 135 of 2004

AGAINST THE ORDER/JUDGMENT IN SC 314/2003 of 3RD ADDITIONAL SESSIONS JUDGE (ADHOC), FAST TRACK COURT NO.I, THRISSUR DATED 16-01-2004 

APPELLANT(S)/ACCUSED NO.2

ABDUL RAHIMAN

BY ADVS.SRI.P.VIJAYA BHANU SRI.TONY MATHEW 

RESPONDENT/COMPLAINANT

STATE OF KERALA, REPRESENTED BY PUBLIC PROSECUTOR HIGH COURT OF KERALA, ERNAKULAM. 

R1 BY PUBLIC PROSECUTOR SRI.K.K.RAJEEV

O R D E R 

The accused in S.C.No.314/2003 on the file of the Third Additional Sessions Court (Adhoc), Thrissur is the appellant in Crl.A.No.135/2004 and the second accused in the same case is the appellant in Crl.A.No.114/2004.

2. The case of the prosecution in nutshell was that on 30.5.1997 at about 7.15 p.m near Vadakkumnatha temple, Thrissur the first accused was found to be in possession of 100 counterfeit currency notes of the denomination of Rs.100/- and when questioned it was revealed that he had received the same from accused 2 to 4 and the second accused was also found to be in possession of hundred such counterfeit currency notes which were in their possession for the purpose of using the same as genuine and sell the same or distribute the same and thereby all of them have committed the offence punishable under 

Sections 489 (B) and (C) read with Section 34 of the Indian Penal Code.

3. After investigation, final report was filed and it was taken on file as C.P.No.11/2003 on the file of the Judicial First Class Magistrate Court-I, Thrissur and the learned Magistrate had committed the case to the Sessions Court, Thrissur where it was taken on file as S.C.No.314/2003 and the same was made over to the Third Additional Sessions Court for disposal.

4. When the accused including the appellants appeared before the court below, after hearing both sides, charge under sections 489 (B) and (C) read with Section 34 of the Indian Penal Code was framed against all the four accused persons and the same was read over and explained to them and they pleaded not guilty. In order to prove the case of the prosecution, Pws 1 to 10 were examined and Exts.P1 to P9, P4(a) and (b) and Mos1 and 2 series were marked on the side of the prosecution. After closure of the prosecution evidence, the accused were questioned under Section 313 of the Code and they denied all the incriminating circumstances brought against them in the prosecution evidence. They have further stated that they have not committed any offence and no contraband articles were seized from their possession and they have been falsely implicated in the case. Since the evidence in this case did not warrant an acquittal under Section 232 of the Code, the accused were called upon to enter on their defence by the learned Additional Sessions Judge but no defence evidence was adduced on their side except marking of Exts.D1 to D6 contradictions in the evidence of Pws 5 and 7. After considering the evidence on record, the learned Additional Sessions Judge had acquitted accused 3 and 4 giving them the benefit of doubt under Section 235 of the Code. But the learned Sessions Judge found the appellants guilty under Sections 489 (B) and (C) read with Section 34 of the Indian Penal Code and sentenced them to undergo rigorous imprisonment for 5 years and also to pay a fine of Rs.5,000/- each, in default to undergo rigorous imprisonment for one year each for the offence under Section 489 (B) read with Section 34 of the Indian Penal Code and further sentenced to undergo rigorous imprisonment for four years each under Section 489 (C) read with Section 34 of the Indian Penal Code and directed the substantive sentences run concurrently. Aggrieved by the same, these appeals were filed by the appellants/accused 1 and 2 before the court below respectively.

5. Since both these appeals arose out of the same judgment, this Court felt that both the appeals can be disposed of by a common judgment.

6. Heard both sides.

7. Sri. Vijaya Bhanu, the learned Senior Counsel appearing for the appellants in both the cases submitted that there are contradictions in the evidence of Pws 1 and 2 regarding the seizure of the contraband article from the possession of the appellants. Further, mere possession of counterfeit currency notes alone is not sufficient to attract the offence under Section 489 (B) of the Indian Penal Code and it must be proved by the prosecution that it was intended to be sold or distributed as genuine currency notes and in order to attract the offence under Section 489 (C) of the Indian Penal Code, it must be proved by the prosecution that the appellants have knowledge about the nature of the currency notes with them and unless their possession with the knowledge that it is counterfeit notes is proved, offence under Section 489(C) also will not be attracted. Further, the expert opinion marked as Ext.P9 should not have been relied on by the court below as no notification has been produced as contemplated under Section 292 of the Code to mark the documents without examining the person who prepared the same. If that document is ignored, then there is no evidence to prove that the currency notes seized is counterfeit notes. Further there is delay in producing the counterfeit notes before the court below, which has not been explained. So, under the circumstances, the court below was not justified in convicting the appellants for the offence alleged.

8. On the other hand, the learned Public Prosecutor submitted that no objection was raised by the defence while marking Ext.P9 and the accused also had no case that the currency note seized is not fake notes. Further the evidence of witnesses examined on the side of the prosecution coupled with the documents produced will go to show that the currency note seized is fake note and knowing that it is fake note, they were in possession of the same and considering the quantity seized it can only be presumed that they wanted to distribute the same as genuine currency notes and thereby the court below was perfectly justified in convicting the appellants for the offence alleged.

9. The case of the prosecution as emerged from the prosecution witnesses was as follows: On 30.5.1997 PW7, the Circle Inspector of Police, Thrissur East Police Station was doing patrol duty along with PW5 and PW6, head constable and police constable around the premises of Vadakkumnatha temple and at that time he saw the first accused standing near the Vadakkumnath temple and on seeing the police party, he got perplexed and tried to go away from that place. Getting suspicion about the conduct of the first accused, PW7 stopped the vehicle and questioned him and conducted search of his body in the presence of PW3 and another and seized MO2 series hundred rupee fake currency notes as per Ext.P3 seizure mahazer. When he questioned him, it was revealed that he had obtained the same from accused 2 to 4, who are standing on the northern side of the temple. He had arrested the first accused and thereafter proceeded towards the place where accused 2 to 4 were standing and when he conducted body search of the second accused, he found MO1 series counterfeit notes and he had arrested the second accused and sealed the same as per Ext.P1 mahazer in the presence of PW1 and another. Thereafter he arrested them also and came to the police station along with the accused persons and the articles seized and registered Ext.P5 First Information Report as Crime No.263/1997 of Thrissur East Police Station against the accused persons including the appellants under section 489(C) read with Section 34 of the Indian Penal Code. Thereafter the case was transferred to CBCID (CFS) unit and the investigation was undertaken by CW12 the detecting officer of CBCID (CFS) unit and he filed Ext.P8 report to add Section 489 (B) of the Indian Penal Code also in the offence column. Mos 1 and 2 series were produced before the court by PW7 along with Ext.P7 property list. The accused were produced before the court along with Ext.P6 remand report. As per the request of CW12, material objects were sent to Hyderabad press for expert opinion and Ext.P9 report was obtained. Thereafter investigation was conducted by CW13 and CW14 completed the investigation and submitted final report before the court and CW12 to CW14 were examined as Pws 8 to 10 respectively.

10. Before going into the questions on facts it is appropriate to consider the precedents on this aspect. In the decision reported in 

Gafoor v. State of Kerala (1987 (2) KLT 730)

this Court has held that: 

"Mere possession or use of counterfeit currency notes is not punishable; the accused must have knowledge or reason to believe that the notes were counterfeits or forged. The prosecution shall prove those ingredients. But this proof need not be necessary by direct evidence. The various circumstances leading to the seizure of forged notes, and the manner in which the accused came into possession of those notes or important circumstances. Under Section 489-B it is necessary that accused who sells or buys or receives or otherwise traffics in or uses as genuine any forged or counterfeit currency notes and bank notes must have knowledge or reason to believe that the same to be forged or counterfeits and the ingredients of section 489 C would also go to show that the accused should have been in possession of the forged or counterfeit currency notes or bank notes knowing or having reason to believe the same to be forged counterfeit note and intending to use the same as genuine".

11. In the decision reported in 

Vijayan v. State of Kearala (2001 (2) KLT 951)

this Court has held that: 

"The term 'possession' as used in Section 489C of the IPC bears a sense at variance from that in civil law. It would amount to criminal possession, if the possessor had knowledge or reason to believe that the notes were forged and if his possession was with the intention of foisting it on the public. If notes were of such a nature that a mere look at them would convince anybody that they were fake notices it can be presumed that he had knowledge or reason to believe that they were counterfeit currencies".

12. In the decision reported in 

K. Hashim v. State of Tamil Nadu (AIR 2005 SC 128)

the Hon'ble Supreme Court has held that: 

"Section 489-B relates to using as genuine forged or counterfeited currency notes or bank notes. The object of Legislature in enacting this section is to stop the circulation of forged notes by punishing all persons who knowing or having reasons to believe the same to be forged do any act which would lead to their circulation". 

In the same decision, it has been observed that: 

"In order to attract the offence under Section 489 C of the Indian Penal Code the possession and knowledge that currency notes were counterfeited notes are necessary and it is restricted to Indian currency note alone". 

Further in the same decision, the scope of Section 28 of the Indian Penal code has been considered and observed that: 

"Counterfeit" in Section 28 does cannote an exact reproduction of the original counterfeited. The Explanation 2 of S.28 is of great significance. It lays down a rebuttable presumption where resemblance is such that a person might be deceived thereby. In such a case the intention or the knowledge is presumed unless contrary is proved.

13. In the decision reported in 

Abdul Fakirsaheb Mamtule v. State of Maharashtra (2001 Crl.L.J 3396) 

the Bombay High Court observed that if the witnesses have admittedly received fake notes from accused, fake notes were recovered from the possession of the accused, then it can be presumed that or it can be inferred that the accused had reason to believe that notes in possession were fake.

14. In the decision reported in 

Ponnuswami v State (1995 Crl.LJ.2658)

the Hon'ble Supreme Court has held that if it is proved that accused was found to be in possession of forged currency notes and he had no explanation as to where from he had obtained the forged currency notes, then the offence under Section 489 B is attracted and conviction for the said offence does not call for any interference.

15. In the decision reported in 

Mammutti v. State of Karnataka (AIR 1979 SC 1705) 

it has been observed that unless the prosecution proves that the accused was found to be in possession of counterfeit currency notes knowing that they are counterfeit and it was intended for the purpose mentioned under Section 489 B, conviction under Section 489 B or C of Indian Penal Code cannot be sustained.

16. In the decision reported in 

Kuttan Nadar Wilson v. State rep. by the Public Prosecutor (2002 (2) KLJ 362) 

this Court has held that in order to attract an offence under Section 489 C of the Indian Penal Code, the prosecution has to establish that the accused has done so with the knowledge or having reason to belief that currency note was forged or counterfeited notes.

17. In the decision reported in 

Umashanker v. State of Chhattisgarh (2001(3)KLT 681(SC)

the Hon'ble Supreme Court has held that in the absence of necessary mens rea for the accused for possession of counterfeit currency notes conviction under Section 489 B and C cannot be attracted as these provisions are not meant to punish unwary possessor or user of the same.

18. So it is clear from the above decisions that in order to attract an offence under section 489 B or C of the Indian Penal Code, mere possession of the counterfeit or fake notes alone is not sufficient but it must be further proved that he had the intention to use the same as genuine notes and he had reason to belief that the note found to be in possession was a fake or counterfeit currency. It is also clear from the above decision that it is very difficult to adduce direct evidence on this aspect to ascertain the mens rea or intention of the accused and the same can be inferred from he circumstances and conduct of the accused and if he is not able to give any satisfactory explanation for coming into possession of such articles, then it may give an inference that he had the intention or knowledge as contemplated under Section 489 B and C of the Indian Penal Code.

19. Further Sections 292 and 293 of the Code of Criminal Procedure (hereinafter referred to as the Code) deals with admission of certain documents without examining the person who prepared the report, which read as follows: 

"292. Evidence of officers of the Mint:-(1) Any document purporting to be a report under the hand of any such gazetted officer of the Mint [officer of any Mint or of any Note Printing Press or of any Security Printing Press (including the officer of the Controller of Stamps and Stationery) or of any Forensic department or Division of Forensic Science Laboratory or any Government Examiner of Questioned Documents or any State Examiner of Questioned Documents, as the case may be,] as the Central Government may, by notification, specify in this behalf, upon any matter or thing duly submitted to him for examination and report in the course of any proceeding under this Code, may be used as evidence in any inquiry, trial or other proceeding under this Code, although such officer is not called as a witness. (2) The Court may, if it thinks fit, summon and examine any such officer as to the subject-matter of this report: Provided that no such officer shall be summoned to produce any records on which the report is based. (3) Without prejudice to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872) no such officer shall, [except with the permission of the General Manager or any officer in charge of any Mint or of any Note Printing Press or of any Security Printing Press or of any Forensic Department or any officer in charge of the Forensic Science Laboratory or of the Government Examiner of Questioned Documents Organisation or of the State examiner of Questioned Documents Organisation, as the case may be, ] be permitted- (a) to give any evidence derived from any unpublished official records on which the report is based;or (b) to disclose the nature or particulars of any test applied by him in the course of the examination of the matter or thing.

293. Reports of certain Government Scientific experts: (1) Any document purporting to be a report under the hand of a Government scientific expert to whom this section applied, upon any matter or thing duly submitted to him for examination or analysis and report in the course of any proceeding under this Code, may be used as evidence in any inquiry, trial or other proceeding under this Code. (2) The Court may, if it thinks fit, summon and examine any such expert as to the subject-matter of his report. (3) Where any such expert is summoned by a Court and he is unable to attend personally, he may, unless the Court has expressly directed him to appear personally, depute any responsible officer working with him to attend the Court, if such officer is conversant with the facts of the case and can satisfactorily depose in Court on his behalf. (4) This section applies to the following Government scientific experts, namely:- (a) any Chemical Examiner or Assistant Chemical Examiner to Government; (b) the Chief Controller of Explosives; (c ) the Director of the Finger Print Bureau; (d) the Director, Haffkeine Instituite , Bombay; (e) the Director [Deputy Director or Assistant Director] of a Central Forensic Science Laboratory or a State Forensic Science Laboratory; (f) the Serologist to the Government [(g) any other Government scientific expert specified, by notification, by the Central Government for this purpose.] 

20. There is difference in the wordings used in Sections 292 and 293 of the Code. In Section 292 of the Code after describing the persons, it was mentioned that "as the central Government may, by notification, specify in this behalf, upon any matter or thing duly submitted to him for used as evidence in any inquiry", and such wordings are not there in Section 293 of the Code. So the documents prepared by persons enumerated under section 293 (4) (a) to (f) can be admitted in evidence without examining them and no specific notification is required in this regard and further persons can be included in this category by virtue of Section 293 (4)(g) of the Code by notification by the Central Government for this purpose. Further (an officer of any Mint or of ant Note Printing Press or of any Security Printing Press (including the officer of the Controller of Stamps and Stationery) or of any Forensic Department or Division of Forensic Science Laboratory or any Government Examiner of Questioned Documents or any State Examiner of Questioned Documents, as the case may be,] were included in the section 293 of the Code by Amendment Act of 2 of 2006 by Section 5 A of that Act which came into effect from 16.4.2006 and by virtue of this, gazetted officer of the Mint or of the Indian Security Press including the office of the Controller of Stamps and Stationary which existed earlier were deleted and the above mentioned persons were included. So in order to prove the documents, unless they are authorised by the notification issued by the Government under section 293 of the Code, they must be examined before court. In the decision reported in 

Vijayachandran v. Superintendent of Police (2008 (3) KLT 307)

this Court has held that mere production of a written report of the expert may prove its contents but not the truth of the same. Truth of what he said and what is recorded in report can be vouched only by testimony of expert given in court and the report is not a substantive peace of evidence. This was considered by the court by examining the implications of Sections 59, 60, 61 and 62 of the Evidence Act regarding proof of documents.

21. In the decision reported in 

Gopal Mohan v.Govindan Nair (2011 (3) KLT SN4 (C.No.2) 

this Court has held that by virtue of section 292 as amended, a report of any Government Examiner of Questioned Documents can be used in evidence in any enquiry or trial or other proceedings although such officer is not called as a witness. It is further observed in the decision that even without examining the expert, his report and the reasons thereon can be used in evidence. It is further observed that rather than basing upon the conviction on the report of the expert it is the admisability of the evidence that is much relevant. In the event the report of the expert is reliable and trustworthy, conviction can be based upon the report of the expert.

22. In the decision reported 

G.P. Nayyar v. State (Delhi admn)(AIR 1979 SC 602) 

it has been observed that all that Articles 20(1) of the Constitution of India prohibits is Ex post facto laws and is designed to prevent a person being punished for an act or omission which was considered innocent when done. It only prohibits the conviction of a person or his being subjected to a penalty under ex post facto laws. It is further observed that though a sovereign legislature has power to legislate retrospectively, creation of an offence for an act which at the time of its commission was not an offence or imposition of penalty greater than which was under the law provided violates Article 20(1).

23. It is true that in this case the expert who prepared Ext.P9 document has not been examined and the document shows that it will fall under section 292 of the Code as the category of person falls under that section. Further no notification has been brought to the notice of this Court issued by the government specifying the persons mentioned under section 292 of the Code but however in the decision reported in Gopal Mohan's case (cited supra) this Court has held that even without examining him that document can be marked as it is only in the nature of procedure provided under section 292 of the Code. Further marking of the document through investigating officer has not been objected as well. Further in view of the dictum laid down in Vijayachandran's case (cited supra) the document can be marked by any person and marking of the document will not only to prove the document but its contents as well. Unless the truth of the same is challenged by the defence at the time of marking they are estopped from challenging the same at the later stage. Further PW8 had categorically stated that the document was sent to Government of India Bank Note Press and Ext.P9 report has been obtained and in Ext.P9 it was mentioned that it is counterfeit notes. This aspect has not been challenged in cross examination as well. Further the accused have no case that the note seized is not fake note or counterfeit note. They have also no case either in the 313 examination or at the time of cross examining the detecting officer or investigating officer that those notes are not counterfeit notes and they have no knowledge that they are counterfeit notes and without such knowledge, they were in possession of the same. They have not given any explanation for the possession of those counterfeit notes as well. Further the court below had also examined the impugned notes and came to the conclusion that even mere looking at the notes will be sufficient to come to the conclusion that they are not genuine notes. So under the circumstances even if the expert opinion is not available, if naked eye examination of the counterfeit itself will indicate that it is a fake note or not a genuine note, then the court can rely on such fact for the purpose of coming to the conclusion that it is a fake note and in the absence of any explanation given regarding their possession, the court can infer the intention or the knowledge or require mens rea as proved under section 489C of the Indian Penal Code. 

24. PW1 is the arrestor to Ext.P1 mahazer by which MO1 series fake notes were seized from the possession of the second accused. He had admitted his signature in Ext.P1 but he had denied having seen the seizure. Similarly PW3 is the person who attested Ext.P3 mahazer by which MO2 series were seized from the possession of the first accused. He had also admitted his signature in the mahazer but denied having seen the seizure. So, it is clear from their acts that they are now trying to help accused persons and that was the reason why they are not supporting the case of the prosecution. So the evidence that is available to prove the case of the prosecution is that of Pws 5, 6 and 7 and the investigating officers 8 to 10. PW7 is the person who detected the crime. He had categorically stated that on that day he along with PWs5 and 6 was doing patrol duty along the road near Vadakkumnatha temple and when he reached on the northern side of the Vadakkumnatha temple, he saw the first accused standing with a plastic bag in a suspicious circumstance and on seeing him, he tried to go away from the place and so they stopped him and when asked about the contents of the bag, he had no proper explanation and so he examined the bag and found 100 numbers of 100 rupee notes and on examination, it was found that they are not genuine notes and the difference seen in the notes were patent, so as to come to the conclusion that it is not genuine notes. When he questioned the first accused, it was revealed that it was given to him by accused 2 to 4. So he arrested him and prepared Ext.P3 mahazer and seized MO2 series as per Ext.P3 mahazer. Thereafter he along with the first accused went to the south nada of the Vadakkumnatha temple where he saw accused 2 to 4 standing as pointed out by the first accused and he questioned them and when examined the second accused, he found another 100 numbers of 100 rupee counterfeit notes on the waist of the second accused which he seized as per Ext.P1 mahazer. He had also deposed that after he came to the police station along with the accused persons, registered the crime and he sent the counterfeit notes to court after preparing Ext.P7 property list and sent the same to the court on 6.6.1997 and he produced the accused before the court on 31.5.1997 along with Ext.P6 remand report. The evidence of PW7 was corroborated by the evidence of Pws 5 and 6, the police officials who accompanied him. It is true that there are certain contradictions marked as Exts.D1 to Ext.D4 in the evidence of PW5 and Exts.D5 and D6 in the evidence of PW7 regarding the place of detection. But over all reading of their evidence will go to show that such discrepancies are not material in nature so as to disbelieve the prosecution case in toto. It is true that no independent witnesses were examined from the place except examining Pws 1 and 3 to prove the seizure and preparation of mahazer, who did not support the case of the prosecution regarding the actual seizure though they admitted their signature in the mahazer. It is settled law that merely because independent witnesses to the seizure did not support the case of the prosecution is not sufficient to disbelieve the case of the prosecution and acquit the accused. If the court is satisfied with the evidence of the official witnesses regarding this aspect, there is nothing wrong for the court to rely on the same and base the conviction on the basis of the evidence of such witnesses in this regard. So under the circumstances the court below was perfectly justified in relying on the evidence of Pws 5 to 7 and coming to the conclusion that the counterfeit notes were seized from he possession of the accused 1 and 2.

25. Delay in production of MOs1 and 2 series is not fatal in this case as PW7 has deposed that he was in possession of the same it was produced before court and in the mahazer its numbers were noted and the mahazer reached the court on the next day itself.

26. In this case the accused had a case that they have been falsely implicated in the case. They have also no case that the police has got any enmity towards them for falsely implicating them in the case. So under the circumstances, the court below was also justified in relying of the official witnesses also for coming to the conclusion that the counterfeit notes were seized from the possession of the appellant.

27. In order to attract the offence under section 489 B of the Indian Penal Code, it must be proved by the prosecution that the accused had used or sold or intended to sell or use the same as genuine notes. Mere possession of the notes alone is not sufficient for attracting the offence under section 489B of the Indian Penal Code though if it is proved by the prosecution that the accused was in possession of the same knowing that it is fake notes will be sufficient to attract the offence under section 489 C of the Indian Penal Code. In this case, the prosecution had no case that any of the accused person had attempted to use these notes as genuine notes and it was at that time they were caught by the police. So, under the circumstances, it cannot be said that the prosecution has proved beyond reasonable doubt that the accused persons had the mens rea to use these fake notes as genuine so as to attract the offence under section 489 B of the Indian Penal Code. So the court below was not justified in convicting the appellants for the offence under Section 489 B of the Indian Penal Code and they are entitled to get acquittal of that charge giving them the benefit of doubt.

28. As regards the offence under Section 489 C is concerned, it was proved by the prosecution that the currency notes seized were fake notes and the suspicious attitude shown by the appellants when they saw the police also gives an indication that they were aware of the fact that the articles in their possession are fake or counterfeit notes. Further in the 313 statement they have no case that it is not a fake currency note and they have no knowledge that it is fake currency notes and their bonafide belief that it is genuine note and with that belief they were in possession of the same. So under the circumstances, the court below was perfectly justified in coming to the conclusion that the appellants were in possession of counterfeit notes knowing or having knowledge that it is fake currency notes and thereby they have committed the offence punishable under Section 489 C of the Indian Penal Code and rightly convicted them for the said offence. So the conviction under section 489 B Indian Penal Code is liable to be set aside and the appellants are entitled to get acquittal of that charge and conviction under Section 489 C of IPC is perfectly justified and it does not call for any interference.

29. As regards the sentence is concerned, in view of the fact that this Court had set aside the conviction under Section 489 B of the Indian Penal Code, the sentence imposed by the court below for the offence under section 489 B Indian Penal Code namely 5 years rigorous imprisonment and fine of Rs.5,000/- each in default to undergo simple imprisonment for one year is unsustainable in law and the same is liable to be set aside.

30. As regards the sentence imposed by the court below for the offence under section 489 C of the Indian Penal Code is concerned, it appears to be on the little higher side. The prosecution has no case that they have got any previous criminal background. Further they were also not able to find out the source of the fake currency notes as well. But at the same time the submission made by the counsel for the appellants that imposing fine alone will be sufficient as imprisonment is not mandatory cannot be accepted as it is an offence affecting the economy of this country. So considering this aspect, this Court feels that sentencing them to undergo rigorous imprisonment for two years and also to pay fine of Rs.10,000/-, in default to undergo sentence of rigorous imprisonment for six months each will be sufficient and it will meet the ends of justice. So, the sentence imposed by the court below against the appellants for the offence under Section 489 C of Indian Penal Code is set aside and the same is modified as fallows: 

The appellants are sentenced to undergo rigorous imprisonment for two years each and also to pay a fine of Rs.10,000/- each, in default to undergo rigorous imprisonment for six months each. 

In the result, both the appeals are allowed in part. The order of conviction and sentence passed by the court below against the appellants under section 489 B of Indian Penal Code are set aside and they are acquitted of that charge giving them the benefit of doubt. But the order of conviction passed by the court below against the appellants under section 489 C of Indian Penal Code is hereby confirmed but the sentence imposed by the court below is set aside and the same is modified as follows: 

The appellants are sentenced to undergo rigorous imprisonment for two years and also to pay a fine of Rs.10,000/- each in default to undergo rigorous imprisonment for six months each. Set off is allowed for the period of detention already undergone by them in this case. 

Office is directed to communicate this order to the concerned court immediately.