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SD. SHABUDDIN versus THE STATE OF TELANGANA

Citation: [2025] 8 S.C.R. 1040 · Decided: 19-08-2025 · Supreme Court of India · Bench: VIKRAM NATH · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2025] 8 S.C.R. 1040 : 2025 INSC 999
Sd. Shabuddin 
v. 
The State of Telangana
(Criminal Appeal No. 3605 of 2025)
19 August 2025
[Vikram Nath* and Sandeep Mehta, JJ.]
Issue for Consideration
Whether the judgment passed by the High Court places a 
reverse burden of proof upon the appellant and is thus, legally 
unsustainable; whether the conviction u/s.411, IPC for dishonestly 
receiving stolen property can be sustained in view of the fact 
that both the accused stand acquitted for the offence of theft 
punishable u/s.379 IPC.
Headnotes†
Penal Code, 1860 – ss.411, 379 – Evidence Act, 1872 – s.114 – 
Conviction u/s.411, when not sustainable – Appellant and co-
accused were acquitted of the charges u/ss.302, 201 and 379 
IPC however, were convicted u/s.411 IPC on the ground that 
they were found in possession of Rs.25,000/- and Rs.2,60,000/- 
respectively, and were unable to account for their possession 
of such a huge amount of cash – Conviction u/s.411 IPC 
confirmed by High Court – Sustainability:
Held: Unsustainable – High Court grossly erred by placing 
reverse burden of proof on the accused to account for the cash 
in their possession when in fact it lied on the prosecution to 
prove their case beyond reasonable doubt – It erred in applying 
the presumption u/s.114, Evidence Act to convict the appellant 
for the offence punishable u/s.411 IPC – The illustration u/s.114, 
Evidence Act would only apply where the prosecution establishes 
the foundational fact of the theft of goods and the possession 
thereof by the accused soon after the incident – No evidence on 
record as to the total amount which the deceased was carrying with 
him when the incident took place – In absence of any convincing 
evidence regarding the amount being carried by the deceased, by 
the mere fact of recovery of a cash amount of Rs.25,000/- from 
* Author
[2025] 8 S.C.R. 
1041
Sd. Shabuddin v. The State of Telangana
the possession of the accused, it cannot be inferred that the said 
amount was stolen goods – The cash so recovered had no special 
or distinct identification characteristics and thus, the same could not 
be linked to amount allegedly stolen from the deceased even if such 
allegation was proved by tangible evidence – Conviction u/s.411 
IPC cannot be based solely on the ground that both the accused 
were unable to account for being in possession of such huge 
amount of cash – Appellant acquitted – Impugned order set aside.  
[Paras 14, 14.2, 16, 17]
Penal Code, 1860 – ss.411, 379 – Whether the conviction 
u/s.411, IPC for dishonestly receiving stolen property can 
be sustained in view of the fact that both the accused were 
acquitted for the offence of theft punishable u/s.379 IPC:
Held: No – Conviction u/s.411 IPC for dishonestly receiving 
stolen property is unsustainable as both the appellant and the 
co-accused were acquitted by the High Court and the Trial Court 
for the offence of theft punishable u/s.379 IPC – Since the very 
beginning, the case of the prosecution was that the co-accused 
committed the homicide of the deceased, stole his belongings, 
including Rs.2,92,629/-, while the deceased was on a business 
trip – The co-accused paid Rs. 30,000/- out of the total money that 
he had stolen from the deceased to the appellant – However, the 
Trial Court rejected this theory of theft, against which no appeal 
was filed – Thus, once the Trial Court had acquitted both the co-
accused and the appellant u/s.379 IPC, it erred in holding that 
they were liable u/s.411 – To establish culpability u/s.411, it must 
be proved that the accused had dishonestly received or retained 
the stolen property and in doing so, he either had knowledge or 
reason to believe that the same is a stolen property – Thus, if 
the courts upon trial hold that the property in question is not a 
stolen property, therefore, the accused cannot be charged for 
the offence punishable u/s.411 especially when the whole case 
of the prosecution relates to the events forming part of the same 
transaction. [Paras 15.3-15.5, 16]
Evidence Act, 1872 – s.102 – When attracted:
Held: In a criminal prosecution, the initial burden is always on 
the prosecution to discharge, whereby the allegations raised by it 
against the accused person are preliminarily satisfied – However, if 
the prosecution is unable to do so, by virtue of s.102, the criminal 
1042
[2025] 8 S.C.R.
Supreme Court Reports
trial initiated against the accused deserves to be dismissed without 
asking the

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