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        Case ID :

        2019 (11) TMI 1836 - HC - Indian Laws

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        Concealed carriage of counterfeit currency can amount to trafficking under Section 489-B when knowledge and explanation are lacking. Concealed possession and carriage of a sizeable quantity of counterfeit currency notes may fall within Section 489-B of the Indian Penal Code, not merely ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Concealed carriage of counterfeit currency can amount to trafficking under Section 489-B when knowledge and explanation are lacking.

                            Concealed possession and carriage of a sizeable quantity of counterfeit currency notes may fall within Section 489-B of the Indian Penal Code, not merely Section 489-C, where the surrounding circumstances show active trafficking and knowledge of the notes' counterfeit character. The expression "or otherwise traffics in" was read broadly to cover transportation of forged notes, and the accused's failure to offer a satisfactory explanation for possession supported the statutory inference. On that basis, the conviction under Sections 489-B and 489-C read with Section 34 was sustained, and the sentence was also affirmed because no legal infirmity or disproportionality was shown.




                            Issues: (i) Whether possession and concealed carriage of a sizeable quantity of forged or counterfeit currency notes constituted offence under Section 489-B of the Indian Penal Code in addition to Section 489-C of the Indian Penal Code. (ii) Whether the conviction and sentence required interference.

                            Issue (i): Whether possession and concealed carriage of a sizeable quantity of forged or counterfeit currency notes constituted offence under Section 489-B of the Indian Penal Code in addition to Section 489-C of the Indian Penal Code.

                            Analysis: Section 489-B punishes not only selling, buying or receiving forged currency notes, but also trafficking in or using them as genuine. The expression "or otherwise traffics in" was held not to be confined to direct bilateral transactions alone. Where a large quantity of counterfeit notes is carried and concealed, the conduct amounts to active transportation and trafficking rather than mere dormant possession. The absence of any explanation from the accused regarding possession of the recovered notes, coupled with the statutory presumption arising from facts especially within their knowledge, supported the inference that they knew the notes were counterfeit and were dealing with them in a manner falling within Section 489-B.

                            Conclusion: The conviction under Section 489-B, along with Section 489-C and Section 34 of the Indian Penal Code, was upheld.

                            Issue (ii): Whether the conviction and sentence required interference.

                            Analysis: The sentence was assessed in the context of the seriousness of offences involving forged currency and their impact on the economy and public interest. The quantity of notes recovered, the concealed manner of possession, and the nature of the offences justified the punishment imposed by the trial court. No legal infirmity, excess, or disproportionality warranting appellate interference was found.

                            Conclusion: The sentence was affirmed and no modification was made.

                            Final Conclusion: The findings of guilt and the punishment imposed on the appellants were sustained, resulting in dismissal of the appeals.

                            Ratio Decidendi: Concealed possession and carriage of a sizeable quantity of forged currency notes may amount to trafficking under Section 489-B when the surrounding circumstances establish knowledge of their counterfeit character and no satisfactory explanation is offered for the possession.


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                            ActsIncome Tax
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