UMASHANKAR versus STATE OF CHHATTISGARH

Citation: [2001] SUPP. 3 S.C.R. 646 · Decided: 05-10-2001 · Supreme Court of India · Bench: S.S.M. QUADRI, S.N. PHUKAN · Disposal: Appeal(s) allowed
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Judgment (excerpt)

A 
UMASHANKAR 
v. 
STATE OF CHHATTISGARH 
OCTOBER 5, 2001 
B 
[SYED SHAH MOHAMMED QUADRI AND S.N. PHUKAN, JJ.] 
c 
Penal Code, 1860: 
Ss.4898 and 489C-Accusedfound u; have circulated fake currency note 
in market and similar currency notes recoveredfrom his possession-Prosecuted 
u!ss. 489A, 4898 and 489C-Convicted and sentenced u!ss. 4898 and 489C by 
trial court-Conviction affirmed by High Court but sentence reduced-Held, 
means rea of offences under ss. 4898 and 489C is "knowing or having reason 
to believe the currency notes or bank notes to be forged or·counteJ;feit"-
Without such mens rea selling, buying or receiving from another person or 
D 
otherwise trafficking i~i or using as genuine forged or counterfeit currency 
notes or bank notes is not enough to constitute offence uls. 4898-So.also in 
the absence of the said mens rea possessing or even intending to use such notes 
is not sufficient to make out a case u!s. 489C-No material is brought on record 
to show that accused had the requisite mens rea-"-The presumption drawn by 
E 
trial court is not warranted u/s. 4 of Evidence Act-It is also not shown that any 
specific question with regard to currency notes being fake or counterfeit was 
put to accused in his examination u!s. 313 of Code of Criminal Procedure-
Charges framed ulss. 489 8 ~nd 489C are not proved-Conviction and sentence 
set aside-Evidence Act, 1872-S.4-Code of Criminal Procedure, 1973-
F 
G 
S.313-Criminal Law-Mens rea. 
CRIMINAL APPELLATE JURISDICTION : Criminal Appeal No. 1024 
of 2001. 
From the Judgment and Order dated 2.11.99 of the Madhya Pradesh 
High Court in Cr!. A. No. 39 of 1992. 
Pramod Swarup, Ms. Pareena Swarup arid Praveen Swarup for the 
Appellant. 
Ms. Gitanjali Mohan for Prakash Shrivastava for the Respondent. 
H 
The following Order of the Court was delivered : 
646 
-
UMASHANKER v. STATE 
647 
Leave is granted. 
The convict, in Session Trial No. 26 of 1991 on the file of the learned 
Sixth Additional Sessions Judge, Bilaspur, under Sections 489-B and 489-C of 
A 
the Indian Penal Code (for short, 'l.P.C.') who was sentenced to three years' 
rigorous imprisonment on each count, is in appeal from the judgment of the 
High Court of Madhya Pradesh at J abalpur in Criminal Appeal No. 39 of 1992, 
B 
allowing it in part on November 11, 1999. The High Court upheld the conviction 
but reduced the sentence from three years' rigorous imprisonment to two years' 
rigorous imprisonment under Section 489-B and one year's rigorous 
imprisonment under Section 489-C. 
Heard Mr. Pramod Swarup, the learned counsel appearing with Mr. 
Praveen Swarup, Advocate-on-.Record for the appellant and Ms. Gitanjali 
Mohan, the learned counsel appearing with Mr. Prakash Shrivastava, Advocate-
on-Record for the respondent-State. 
The gravamen of the charge against the appellant is that on May 25, 1990 
at about 10 p.m. having purchased one kilo gram of mango costing Rs. 5 he 
paid a fake currency-note of Rs. 100 to P.W. 4 who doubted its genuineness. 
She showed it to P.Ws. 2 and 7 who also said that it was a fake currency-note. 
He was handed over to police who recovered 13 more such fake currency-notes 
from him. Further some papers, refills or different colours and scissors were 
also r...covered from his house. On these facts charges were framed against him 
under Sections 489-A, 489-B and 489-C of l.P.C. 
After considering the evidence on record the learned trial judge acquitted 
him of charge under Section 489-A but found him guilty of charges under 
Sections 489-B and 489-C of 1.P.C. and sentenced him for the periods noted 
above. On appeal the High Court confirmed the conviction but reduced the 
sentence, afore-mentioned. 
The conviction of the appellant by the trial court as confirmed by the 
High Court, is under Section 489-B and Section 489-C of l.P.C., which read 
as under: 
"489-B. Using as genuine, forged or counteifeit currency-notes or 
bank-notes. -
c 
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E 
F 
G 
Whoever sells to, or buys or receives from, any other person, or 
otherwise traffics in or uses as genuine, any forged or counterfeit . H 
A 
B 
c 
648 
SUPREME COURT REPORTS 
(2001] SUPP. 3 S.C.R. 
currency-note or bank-note, knowing or having reason to believe the 
same to be forged or counterfeit, shall be punished with [imprisonment 
for life], or with imprisonment of either description for a term which 
may extend .to ten years, and shall also be liable to fine. 
489-C. Possession of forged or counterfeit currency notes or
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