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Issues: (i) Whether the appellant's conviction under Section 489C of the Indian Penal Code for possession of counterfeit currency notes was sustainable on the evidence; (ii) Whether the appellant could be convicted under Section 489B of the Indian Penal Code on the basis of having otherwise trafficked in counterfeit currency notes without a charge to that effect; (iii) Whether the examination of the appellant under Section 313 of the Code of Criminal Procedure caused any prejudice.
Issue (i): Whether the appellant's conviction under Section 489C of the Indian Penal Code for possession of counterfeit currency notes was sustainable on the evidence.
Analysis: The evidence of the raiding party was found consistent on the recovery of a large quantity of counterfeit currency notes from the appellant. The hostile independent witnesses did not discredit the prosecution case because they had been confronted with their earlier statements and their version was found unreliable in the light of the seizure list, the material exhibits, and the expert report confirming the notes to be fake. Minor discrepancy in the number of notes recovered from the co-accused was treated as inadvertent and not affecting the core prosecution version.
Conclusion: The conviction and sentence under Section 489C of the Indian Penal Code were upheld, in favour of the respondent.
Issue (ii): Whether the appellant could be convicted under Section 489B of the Indian Penal Code on the basis of having otherwise trafficked in counterfeit currency notes without a charge to that effect.
Analysis: The statutory ingredients of Section 489B require sale, purchase, receipt, use as genuine, or trafficking with knowledge or reason to believe that the notes are counterfeit. Although transportation of counterfeit currency may, in a proper case, fall within the concept of trafficking, the appellant had not been charged with that specific mode of commission. Convicting him on that basis at the appellate stage, without reframing the charge, would cause prejudice and amount to failure of justice.
Conclusion: The conviction and sentence under Section 489B of the Indian Penal Code were set aside, in favour of the appellant.
Issue (iii): Whether the examination of the appellant under Section 313 of the Code of Criminal Procedure caused any prejudice.
Analysis: The questioning under Section 313 was found to be adequate in substance. Even if the questions were not elegantly framed, the appellant understood their purport and suffered no prejudice. The cited objection was therefore distinguished on facts.
Conclusion: No infirmity in the Section 313 examination was established.
Final Conclusion: The appeal succeeded only to the extent of setting aside the conviction under Section 489B of the Indian Penal Code, while the conviction and sentence under Section 489C of the Indian Penal Code were maintained.