Use Of Counterfeit Currency In Absence Of Mens Rea Doesn't Attract Offence U/S 489B IPC: Gujarat High Court Upholds Acquittal

In a recent ruling, the Gujarat High Court upheld the acquittal of six individuals in a counterfeit currency case, dismissing the appeal filed by the State under Section 378 of the Criminal Procedure Code, 1973.

The Court maintained that the absence of mens rea, or the intention or knowledge of wrongdoing, rendered the mere use of forged or counterfeit currency notes insufficient to attract the provisions of Section 489(B) of the Indian Penal Code.

The appeal challenged the judgement and order of acquittal dated January 9, 1998, recorded by the Additional Sessions Judge, Kutch-Bhuj.

The division bench comprising Justices Nirzar S. Desai And Hasmukh D. Suthar observed, “In the case on hand, when mens rea is conspicuously absent, the mere use of any forged or counterfeit currency notes or bank notes cannot attract the provisions of Section 489(B). The essential ingredient of the said offense is that the person who receives the notes has reason to believe that the said notes are forged or counterfeit. The prosecution is required to prove beyond all reasonable doubt that the accused had knowledge or reason to believe that the currency notes they used or possessed were counterfeit or fake. The prosecution has failed to prove this fact.”

The case dates back to 1992, when PSI Mr. R.G. Rathod of Kutch-Bhuj received an intelligence report indicating that Himatlal Bhailal Rajgor (Accused No. 1) possessed counterfeit US dollars and Indian currency notes. Acting on this information, a raid was conducted, leading to the recovery of 135 counterfeit dollars from the residence of Karamshi Mahadevbhai Desai (Accused No. 2). Additional counterfeit dollars were subsequently found at the residence of Lalji Harilal Mistry (Accused No. 3) and other accused individuals.

The Sessions Judge had confirmed the charges against the accused under Sections 489(A), (B), (C), and (D), 34 read with Section 114 of the Indian Penal Code. Mansukh Mitubhai Joshi and Umiyashanker Mitubhai Joshi (Accused Nos. 5 and 6) were charged with impersonating police officers and participating in the illegal transportation of counterfeit currency.

The APP submitted that during the raid, counterfeit dollars and a file were found at the residential premises of the accused. He further submitted that the prosecution clearly proved that the currency was forged, supported by the FSL report. He also asserted that the accused were fully aware that the currency notes were counterfeit.

Conversely, the advocate for the respondent argued that there was no evidence connecting the accused to the crime, and the allegations against them were baseless. He further contended that there was no evidence to prove that the accused impersonated police officers by wearing police uniforms, making Section 171 of the IPC inapplicable.

The Court, while noting that the accused persons were facing charges under Sections 489(A), (B), (C), and (D) of the IPC, observed, “Regarding these provisions, the words "knowing or having reason to believe the currency-notes or bank notes to be forged or counterfeit"."

The Court emphasised that without the aforementioned mens rea (the intention or knowledge of wrongdoing), actions such as selling, buying, receiving, trafficking, or using counterfeit currency-notes or bank-notes do not suffice to constitute an offense under Section 489-B of the IPC. Similarly, merely possessing or intending to use forged or counterfeit currency-notes or bank-notes is insufficient to make out a case under Section 489-C without the requisite mens rea, the Court added.

Further, the Court stated, "mens rea is a sine qua non for inviting a penalty under the said provision. Scanning the evidence produced on record, all panch witnesses turned hostile, and there is no evidence for the recovery of the currency notes from the conscious possession of the accused persons. Nonetheless, even if, for the sake of argument, it is accepted that the currency notes were recovered from the possession of the accused persons, it is not enough to prove the offense in the absence of any evidence of mens rea."

The Court asserted that in the absence of any independent evidence regarding whether the said forged notes were sealed or packed in the presence of independent witnesses, there was no proof that they were sent to the FSL for examination. Furthermore, the FSL's opinion stated that the FSL used control sample notes from their own source, and no independent witness was examined to prove the currency notes were forged.

“In view of the above and in backdrop of the evidence adduced/produced by the prosecution, material contradictions which goes to the root of the case of the prosecution are noticed by the learned trial Court and as the prosecution failed to prove the case against the accused beyond all reasonable doubts, learned trial Court has not committed any error in acquitting the accused,” the Court concluded while dismissing the appeal and upholding the judgment and order of acquittal.

Case Title: State Of Gujarat Versus Himatlal Bhailal Rajgor & Ors

LL Citation: 2024 LiveLaw (Guj) 74

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