Justice A. Badharudeen, Kerala High Court 

The Kerala High Court has granted acquittal in a fake note case after noting that the alleged counterfeit currency notes recovered on January 19, 1998 reached the Court about 6 months and one year later. The High Court also held that the failure to produce the counterfeit notes within a reasonable time would be fatal to the prosecution's case.

The High Court was considering an appeal moved by the sole accused booked in a case registered under Sections 489B and 489C of the Indian Penal Code.

The Single Bench of Justice A. Badharudeen held, “When the prosecution failed to produce the counterfeit notes before the court within a reasonable time and the same were produced within 6 months and one year the same definitely would be fatal to the prosecution and in such cases it is not fair to fasten criminal culpability on the accused since the recovery of counterfeit notes is in the midst of doubts because of its delayed production before the court.”

Advocate Adithya Rajeev represented the Appellant while Senior Public Prosecutor Vipin Narayan. A represented the Respondent.

Factual Background

The prosecution alleged the commission of offences punishable under Sections 489B and 489C of the Indian Penal Code (IPC), by the accused on the premise that, the accused possessed and used a counterfeit currency note of Rs 50. PW1, who was doing business at his own shop deposed that the accused reached his shop and purchased a cool drink and 2 Wills cigarettes, and then he gave a 50 rupee note. Since the note was found to be merely a piece of paper, he found the same to be a fake note. The police arrived and recovered the notes including the notes kept at the pocket of the accused. It was further alleged that a total eight counterfeit currency notes of the denomination of Rs.50 were recovered from his possession. The Sessions Judge tried the case and found commission of offences punishable under Sections 489B and 489C, by the appellant/accused and he was convicted thereunder.

Reasoning

On a perusal of the facts of the case, the Bench noted that the alleged counterfeit currency notes recovered on January 19, 1998 reached the court about 6 months and one year later.

“Inasmuch as cases where the nature of contraband or the nature of the offending substance would make the possessor and user of the same as an offender, prosecution has a duty to produce the disputed contraband to the court concerned at the earliest and within a reasonable time, which is justifiable; since the nature of contraband is decisive as far as the offence or offences committed by the accused is/are concerned. In such cases, delay in producing the contraband, here the counterfeit currency notes to the court within a period of six months and one year, would definitely a matter which would create strong doubts regarding detection and recovery of the counterfeit notes even though as per Ext.P6, the expert opined that M.O1 series are counterfeit currency notes”, it added.

The Bench was of the view that the benefit of doubt in the delayed production of the notes should go in favour of the accused. Holding that the prosecution failed to prove the case beyond a reasonable doubt, the Bench allowed the appeal.

Thus, setting aside the verdict under challenge, the Bench acquitted the appellant of the offences punishable under Sections 489B and 489C of the IPC.

Cause Title: Sathyan, S/O Sankaran v. State of Kerala (Neutral Citation: 2026:KER:43955)

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