TaxTMI 
TaxTMI 
1986 (11) TMI 355
X X X X Extracts X X X X
X X X X Extracts X X X X
....er rendered by the Kerala High Court in Cr.R.P. 263 of 1975 on November 17, 1976, giving rise to the present appeal by certificate of fitness under Article 134(1)(c) of the Constitution of India. Facts: The six respondents herein were charged with offences punishable under Sections 120B, 489A, 489B and Section 420 read with Sections 511 and 34 IPC. The prosecution case against them was that in furtherance of a conspiracy entered into by accused nos. 1 to 4 to forge and counterfeit American dollar notes of 20 dollar denomination, they indulged in counterfeiting by printing 2000 such notes. Respondents 1 and 2 were further alleged to have been in possession of 148 forged currency notes knowing the same to be forged, with intent to use these forged notes as genuine. The respondents were committed by the Magistrate to stand their trial before the Sessions Court, for offences, under Sections 120-B, 487A and 489C read with Sections 511 and 34 IPC. It was contended by the respondents-accused before the Sessions Court that a charge under Sections 489A and 489C of the IPC could be lawfully levelled only in the case of counterfeiting of'Indian' currency notes and not in the case of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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." Analysis: An analysis of Section 489A reveals that:-- (i) counterfeiting 'any' currency note or bank-note is an offence;(ii) knowingly performing any part of the process of counterfeiting any currency note or bank-note is also an offence; and (iii) the prohibition against counterfeiting or performing such process applies to currency notes as also to bank-notes as defined by the explanation to Section 489A. And inasmuch as the aforesaid expression interalia means any engagement1 for the payment of money to the bearer issued by or under the authority of any State or Sovereign power provided it is intended to be used as equivalent to or substitute for money the prohibition also extends to counterfeiting etc. of currency notes of any other sovereign power. Outcome: This analysis reveals that the legislative embargo against counterfeiting envelops and takes within its sweep 'currency notes' of all countries. The embargo is not restricted to 'Indian' currency notes. The legislature could have, but has not,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y notes and not in respect of currency notes issued by other sovereign powers. The purpose of the legislation appears to be to ensure that a person accepting a currency note is given a genuine currency which can be exchanged for goods or services and not a worthless piece of paper which will bring him nothing in return, it being a counterfeit or a forged currency note. Would the legislature in its wisdom and anxiety to protect the unwary citizens extend immunity from being cheated in relation to Indian currency notes but show total unconcern in regard to their being cheated in respect of currency notes issued by any foreign State or sovereign power?. In the modern age a tourist from a foreign country may bring from his own country into India currency to the extent permissible under the law in India. So also he may obtain foreign currency in exchange of Indian currency whilst in India provided he does so to the extent permissible by the Foreign Exchange Regulation Act, 1. Currency n. 1. a metal or paper medium of exchange that is in current use. (Collins English Dictionary). 1973(1) and operates through an authorised person(2) known as money changer(3). Would it be reasonable to as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he written permission of a person authorised in this behalf by the Reserve Bank, take or send out of India any gold, jewellery or precious stones or Indian currency or foreign exchange other than foreign exchange obtained by him from an authorised dealer or from a money-changer. 2. Sec. 6(1). The Reserve Bank may, on an application made to it in this behalf, anthorise any person to deal in foreign exchange. (2) An authorisation under this Section shall be in writing and- (i) may authorise dealings in all foreign currencies or may be restricted to authorising dealings in specified foreign currencies only; (ii) may authorise transactions of all descriptions in foreign currencies or may be restricted to authorising specified transactions only; (iii) may be granted to be effective for a specified period, or within specified amounts; (iv) may be granted subject to such conditions as may be specified therein. (3) Any authorisation granted under sub-section (1) may be revoked by the Reserve Bank at any time if the Reserve Bank is satisfied that-(foot note contd.) (i) it is in the public interest to do so; or (ii) the authorised dealer has-not complied with the conditions subject t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fied therein. (3) Any authorisation granted under sub-section (1) may be revoked by the Reserve Bank at any time if the Reserve Bank is satisfied that:- (i) it is in the public interest to do so; or (ii) the money-changer has not complied with the conditions subject to which the authorisation was granted or has contravened any of the provisions of this Act or of any rule, notification, direction or order made thereunder. Provided that no such authorisation shall be revoked on the ground specified in clause (ii) unless the money-changer has been given a reasonable opportunity for making a representation in the matter. (4) The provisions of sub-sections (4) and (5)'of Section 6 shall, in so far as they are applicable, apply in relation to a money-changer as they apply in relation to an authorised dealer, (5) Explanation--In this section, "foreign money" means foreign currency in the form of notes, coins or travellers' cheques and "dealing" means purchasing foreign currency in the. form of notes, coins or traveller's cheques or selling foreign currency in the form of notes or coins. Why then construe the expression 'currency note' as being applicable only to a....