Counterfeit foreign currency falls within IPC offences under Sections 489A and 489C; discharge reversed and proceedings continue.

Sections 489A and 489C of the Indian Penal Code, 1860 were construed to extend to counterfeit foreign currency notes, including dollar bills. The Court held that "currency note" in Section 489A is of wide amplitude and is not limited to Indian currency, and that the Explanation to the section covers notes issued by or under the authority of a State or sovereign power intended to be used as money. It further held that the High Court wrongly imported definitions from another statute and read a limitation into the penal provision. The same construction applied to Section 489C, which covers possession of forged or counterfeit currency notes with the requisite knowledge and intent. The discharge order was reversed and proceedings were directed to continue.

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Issues: Whether Sections 489A and 489C of the Indian Penal Code, 1860 apply to counterfeiting and possession of counterfeit foreign currency notes, including dollar bills.

Analysis: The expression "currency note" in Section 489A is of wide amplitude and is not confined to Indian currency notes. The Explanation to Section 489A expands the scope of "bank note" to notes issued by or under the authority of any State or sovereign power and intended to be used as money, which includes foreign sovereign currency. The Court held that there was no textual basis to read into the provision a limitation to Indian currency only, and that the High Court had wrongly imported definitions from another statute and effectively rewritten the penal provision. The same reasoning extended to Section 489C, which covers possession of forged or counterfeit currency notes or bank notes with the requisite knowledge and intent.

Conclusion: Counterfeiting and possession of counterfeit foreign currency notes are offences under Sections 489A and 489C of the Indian Penal Code, 1860, and the contrary view of the High Court was set aside.

Final Conclusion: The discharge order was reversed and the criminal proceedings were directed to continue in accordance with law.

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