Gurnam Singh vs State of Union Territory, Chandigarh

B.S. Nehra, J.

This Criminal Appeal is directed against the judgment and order dated 2911988 of Shri S.R. Bansal, Additional Sessions Judge, Chandigarh, convicting the appellant under Section 489B and 489C of the Indian Pena) Code and sentencing him to imprisonment for a period of six months and to pay a fine of Rs. 1,000/ or in default of payment of fine, to further undergo rigorous imprisonment for two months under the former provision and, to rigorous imprisonment for six months and to pay a fine of Rs. 300/ or in default of payment of fine, to further undergo rigorous imprisonment for 11/2 months under the later provision of the Indian Penal Code.

One Shri Harbans Lal, who was working as a peon in M/s J.K. SCO No. 374, Sector 35B, Chandigarh, presented at the counter of Reserve Bank of India, Chandigarh, on 5121985 torn and old currency notes of the value of Rs. 200/ for exchange. In the course of checking of these currency notes, the Assistant Treasurer of the Reserve Bank of India developed a suspicion about one of these currency notes of the denomination of Rs. 20/ as being counterfeit. He got this, currency note inspected from P.M. Shah, Cashier of the Reserve Bank, who confirmed that it was a counterfeit currency note. When he was asked about it, Harbans Lal stated that he had been given these currency notes by the appellant, who is working as an Assistant Manager (Finance) in M/s J. K. Industries. The matter was reported to Shri Sumat Jain, Assistant Currency Officer, Reserve Bank of India, who eventually lodged report with the police, on the basis of which the present case was registered against the appellant During the investigation of the case the police recorded the statements of the witnesses and forwarded the disputed currency note Exhibit P. I to Nasik and according to the report received from there, the currency note Exhibit P1 was found to be forged. The appellant was thereupon arrested and after the completion of the investigation, he was, sent up for trial. The trial Court found a prima facie case against him and framed a chargesheet under Sections 489B and 489C of the Indian Penal Code. He, .however pleaded not guilty to the charges and claimed to be tried.

In support of its case, the prosecution examined PW1 Shri Sumat Kumar Jain, Assistant Currency Officer, Reserve Bank of India, Sector 17, Chandigarh. This witness deposed that on 5121985, Shri Harbans Lal had presented certain currency notes of different denominations of the total value of Rs. 200/ on the Reserve Bank counter for exchange. Shri G.K. Sharma, working as Assistant Treasurer in the Reserve Bank of India, on checking found the currency note of Rs. 200, denomination to, be forged. He reported the matter to this witness for making reference to the police. This witness asked Harbans Lal, who told him in writing that he was working as a Peon with M/s J. K. Industries, Chandigarh, and he had brought the said currency note from his Company for exchange. Thereafter the appellant was called and he told that he received the said notes from a dealer of the Company. Thereupon PW1 Sumat Kumar Jain lodged the report Exhibit PB with the police, in this regard. PW2 Shri V.K. Aggarwal is a Senior Depot Manager, J.K. Industries. He proved that said Gurnam Singh appellant, was posted as Assistant Office Manager in their Company at Chandigarh and that the latter had deputed Harbans Lal of their Company for the exchange of currency notes. PW3 M.P. Shah is the Treasurer, Reserve Bank of India, Chandigarh. He proved that Shri G.K. Sharma was on duty at the counter for the exchange of currency notes on 5121985. According to him, one Harbans Lal had come to their counter and wanted the exchange of currency notes of the total value of Rs. 200/ and presented the same to Shri G.K. Sharma, out of which one currency note of thedenomination of Rs. 20/ was found to be forged. PW5 GK Sharma is the Assistant Currency Officer, Reserve Bank of India, who was working at Chandigarh on 5121985. According to him, Harbans Lal had brought currency notes of the total value of Rs. 200/ including the disputed currency note of the denomination of Rs. 20/ He (this witness) checked all the notes and found the said currency note of Rs. 20/ to be forged. He then informed Shri M.P. Shah, Treasurer. On enquiry, Harbans Lal told that these notes were given by their Manager, viz, the appellant for exchange. Thereupon, the appellant was called to, the Bank and he had admitted having sent these notes for exchange in the Bank. PW6 is Sub inspector Surinder Kumar Malhotra.

In his statement under Section 313 of the Criminal Procedure Code. the appellant denied the material allegations of the prosecution and pleaded innocence. He, however, did not produce any evidence in his defence.

Before analysing the prosecution evidence, it is necessary to consider the provisions of Sections 4898 and 489C of the Indian Penal Code. These are reproduced below for facility of reference

"489B. Using as genuine, forged or counterfeit currency notes or bank notes. Whoever sells to, or buys or receives from, any other person, or otherwise traffics in or uses as genuine, any forged or counterfeit currency note or banknote, knowing or having reason to believe the same to be forged or counterfeit, shall be punished with imprisonment for life, or with imprisonment of either, description for a term which may extend to ten years, and shall also be liable to fine.

489C. Possession of forged or counterfeit currencynotes or bank notes Whoever has in his possession any forged or counterfeit currencynote or banknote, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, shall be punished with imprisonment of either description for a term which may extend to seven years, or with fine, or with both."

At the cost of repetition, it may be observed that the appellant had been charged under the aforesaid provisions of the Indian Penal Code. The portions of these provisions which have been underlined above, would show that before a person can be held guilty under these Sections, it must be proved that such a person, while using as genuine forged or counterfeit currency notes or bank notes, knew or had reason to believe the same to be forged or counterfeit. Similarly; it is required to be established that if a person is possessed of a forged or counterfeit currency note or bank note, he can be held guilty of the provision if he knew or had reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine. The point for consideration is whether the prosecution has produced any reliable evidence to prove that the appellant had the knowledge before sending the currency notes through Harbans Lal to the Reserve Bank of India for exchange that one of the currency notes of the denomination of Rs. 20/ which was being sent by him along with other currency notes was forged or he had the reason to believe that same to be forged or counterfeit. None of the prosecution witnesses, except PW2 V.K. Aggarwal, examined by the Prosecution to substantiate the charges against the appellant, has said, even a single word that the appellant had the knowledge when he sent Harbans Lal to the Reserve Bank of India to exchange the currency notes that one of these currency notes of the denomination of Rs. 20/ was forged currency note. In so far as PW2 V.K. Aggarwal is concerned, it is true that he has deposed that before sending the notes, the appellant had told that he suspected one currency note of Rs. 20/ to be forged. Shri J.N. Kaushal, learned Senior Advocate appearing for the appellant, vehemently urged that knowledge regarding currency note to be a forged one cannot be attributed to the appellant on the basis of this part of the testimony of this witness, for it was nowhere the case of the prosecution in the first information report that the appellant knew before sending Harbans Lal to the Reserve Bank of India for exchange of currency notes that he suspected one of the currency notes to be forged one. Shri Anand Swaroop, learned Senior Advocate appearing for the U.T. Admn. was unable to controvert the contention of Shri Kaushal in this regard.

If the currency notes are of such a nature that mere look at them would not convince anybody that they were counterfeit, no presumption can be drawn that the appellant knew that the currency note of the denomination of Rs. 20 sent by appellant along with other currency notes through Harbans Lal for exchange to the Reserve Bank of india was counterfeit one. It is significant that in the instant case, no question was put to the apellant in hi; statement under Section 313 Criminal Procedure Code to find out whether he knew that the disputed currency note in his possession was counterfert. In such a case, the conviction of the appellant cannot be sustained. A similar view was taken by the Supreme Court in M. Mammutti v. State of Karnataka, AIR 1979 Supreme Court 1705. Again in Bachan Singh and another v. The Sate of Punjab, 1982 Criminal Law Journal 32, it was held by the Punjab and Haryana High Court that in order prove that a case falls within the purview of Section 489C, Indian Penal Code, it was not only necessary to prove that the accused was in possession of forged currency note but it should further be established that at the time of possession he knew the note to be forged or had the reason to believe the same to be forged or counterfeit and he intended to use the same as genuine. None of these ingredients has been established against the appellant, in the instant case. Under the circumstances, the conviction of the appellant and the sentence awarded to him is unsustainable.

For the reasons recorded above, the appeal is allowed, the impugned judgment and order of the learned trial court are set aside and the appellant is acquitted of the charges under Sections 489B and 489 C of the Indian Penal Code.