IPC – Offences Relating to Coin, Government Stamps, Currency Notes, Weights and Measures Part – 18

IPC – Offences Relating to Coin, Government Stamps, Currency Notes, Weights and Measures Part – 18

In this session we are going to discuss four offences under three chapters of IPC, namely –

(1)     Offences relating to coin – Chapter XII (Sections 230 to 254)

(2)     Offences relating to government stamps” – Chapter XII (Sections 255 to 263A)

(3)     Offence relating to currency notes and bank notes – Chapter XVIII, (489A-489D)

(4)     Offences relating to weights and measures – Chapter XIII (sections 264-267).

As far as the offence relating to coin or Indian coin is concerned, it rarely takes place. in fact, when IPC was enacted at that time the coin was most valuable than the currency notes as it was made of gold or silver or metal with authority of kingdom published over it. But, now-a-days, coins are printed by Government of India and it is not of gold or silver but of metal.

On the other hand, offences relating to stamp is concerned, probability of such offence also has been reduced as the government had introduced punching by electronic stamp. But, still paper stamps are in circulation, hence chance for counterfeiting, making, selling and possessing with counterfeiting stamps is there.

The offence relating to currency note is more important than the above, since we had introduced, more valued currency notes, so there are chances of circulating fake notes, which we found now and then.

The offences relating weights and measures is general offence, even we have separate department to deal with it, some responsibility is also given to panchayati raj. The consumer protection Act deals with giving less items to consumer but here using of less weights and non-standard weight or any instrument for measuring less, is an offence which differ from consumer protection.

(1) OFFENCE RELATING TO ‘COIN’

Offences relating to coin are covered by sections 230 to 254 and offences relating to stamp are covered by sections 255 to 263. In this chapter some of the provisions are redundant, so it will be better to discuss relevant provisions only.

Presently, two format of currency is in used – coin and currency notes. Coin of any value and one rupee note are printed by the Government of India whereas all currency notes other than one rupee note are printed and controlled by Reserve Bank of India (RBI). Counterfeiting of currency notes are offences under offences relating to document. As you know, before independence there were different kinds of coin were in used in different states but now we have uniform policy on the coin (Indian Coin). Therefore, accordingly the session is modified.

According to section 230, Indian coin is metal stamped and issued by the authority of the Government of India in order to be used as money; and metal which has been so stamped and issued shall continue to be Indian coin for the purposes of this Chapter, notwithstanding that it may have ceased to be used as money. Medals are not coin, in as much as they are not intended to be used as money.

The offences relating coins may be classified into three divisions – counterfeiting, alteration, and acts of mint employees.

(1.1) COUNTERFEITING COINS

(a) Whoever counterfeits, or knowingly performs any part of the process of counterfeiting coin or Indian coin is an offence under sections 231 and 232.

It is not essential for coins to be counterfeited that they should be of exact resemblances to genuine coin. It is sufficient that they are such as to cause deception and may be passed as genuine. But where the alleged counterfeit coins are such that none would be deceived, these cannot be counterfeit coins within the meaning of this section.[1]

(b) Making or selling instrument for counterfeiting coin or Indian coin is an offence under sections 233 and 234 of IPC. Whoever makes or mends, or performs any part of the process of making or mending, or buys, sells or disposes of, any die or instrument, for the purpose of being used, or knowing or having reason to believe that it is intended to be used, for the purpose of counterfeiting coin or Indian coin is punishable under these sections.

(c) Whoever is in possession of instrument, or material for the purpose of using the same for counterfeiting Indian coin or knowing or having reason to believe that the same is intended to be used for that purpose is an offence under section 235.

(d) Abetting counterfeiting coin.- Whoever, being within India, abets the counterfeiting of coin out of India, is punishable under section 236.

(e) Import or export of counterfeits of the India coin.- Whoever imports into India, or exports there from any counterfeit coin, which he knows or has reason to believe to be a counterfeit of India coin, is punishable under sections 237 and 238 of IPC.

(f) Delivery of Indian coin, possessed with knowledge that it is counterfeit.- Whoever, having any counterfeit coin which is a counterfeit of Indian coin,  and which, at the time when he became possessed of it, he knew to be a counterfeit of Indian coin, fraudulently or with intent that fraudulently or with intent that fraud may be committed, delivers the same to any person, or attempts to induce any person to receive it is punishable under sections 239 and 240 of IPC.

(g) Delivery of coin as genuine, which, when first possessed, the deliverer did not know to be counterfeit, is an offence under section 241 of IPC.

(h) Possession of counterfeited Indian coin.- Whoever, fraudulently or with intent that fraud may be committed, is in possession of counterfeit coin, which is a counterfeit of Indian coin, having known at the time when he became possessed of it that it was counterfeit, is an offence.

(1.2) ACTS OF MINT EMPLOYEES

(a) Person employed in mint causing coin to be of different weight or composition from that fixed by law.- Whoever, being employed in any mint lawfully established in India, does any act, or omits what he is legally bound to do, with the intention of causing any coin issued from that mint to be of a different weight or composition from the weight or composition fixed by law, is punishable under section 244 of IPC.

(b) Unlawfully taking coining instrument from mint.- Whoever, without lawful authority, takes out of any mint, lawfully established in India, any coining tool or instrument, is punishable under section 245 of IPC.

Both offences are punishable with imprisonment up to seven years and fine.

(1.3) ALTERATION IN COIN

(a) Diminishing weight or altering composition of any coin.- Whoever fraudulently or dishonestly performs on any coin any operation which diminishes the weight or alters the composition of that coin, is punishable under sections 246 and 247 of IPC.

(b) Altering appearance of any coin to pass it off as a different coin.- Whoever performs on any coin any operation which alters the appearance of that coin, with the intention that the said coin shall pass as a coin of a different description, is an offence under sections 248 and 249 of IPC.

(c) Delivery coin possessed with knowledge that it is altered.- Whoever, having altered coin in his possession, and having known at the time when he became possessed of such coin is altered, delivers such coin to any other person, or attempts to induce any other person to receive the same, is punishable with sections 250 and 251.

(d) Possessing altered coin knowing it to be so.- Whoever, fraudulently or with intent that fraud may be committed, is in possession of altered coin, having known at the time of becoming possessed thereof, that such offence had been committed with respect to such coin, is punishable under sections 252 and 253 of IPC. 

(e) Delivering altered coin which the deliverer did not know to be altered when first possessed.- Whoever delivers to any other person as genuine or as a coin of a different description from what it is, or attempts to induce any person to receive as genuine, or as a different coin from what it is, any altered coin, but in respect of which he did not, at the time when he took it into his possession, know that such operation had been performed, is punishable under section 254 of IPC.

(1.4) CLASSIFICATION OF OFFENCES RELATING INDIAN COIN

(2) OFFENCES RELATING TO STAMP

Offences relating to stamp may be discussed under two heads, namely – counterfeiting government stamp (Sections 255 to 260) and removal or use of used stamp (sections 261 to 263A).

(2.1) COUNTERFEIT GOVERNMENT STAMP

(a) Counterfeiting Government stamp.- Whoever counterfeits, or knowingly performs any part of the process of counterfeiting, any stamp issued by Government for the purpose of revenue, is punishable under section 255 up to 10 years imprisonment and fine.

(b) Possessing of instrument for counterfeiting stamp.- Whoever has in his possession any instrument or material for the purpose of being used, or knowing or having reason to believe that it is intended to be used, for the purpose of counterfeiting any stamp issued by Government for the purpose of revenue, is punishable u/s. 256 with 7 years’ imprisonment and fine.

(c) Making or selling instrument for counterfeiting.- Whoever makes or performs any part of the process of making, or buys, or sells, or dispose of, any instrument for the purpose of being used, or knowing or having reason to believe that it is intended to be used, for the purpose of counterfeiting any stamp issued by Government for the purpose of revenue, is punishable u/s. 257 with 7 years’ imprisonment and fine.

(d) Sale of counterfeit stamp.- Whoever, sells, or offers for sale, any stamp which he knows or has reason to believe to be a counterfeit of any stamp issued by the Government for the purpose of revenue, is punishable u/s. 258 with 7 years’ imprisonment and fine.

In a case, counterfeited Court Fee Stamps were recovered from the possession of a licenced stamp vendor. The vendor told that he purchased all stamps from the treasury, but the register showing such purchase was not produced. It was inferred that the accused had ‘acknowledge’ or ‘reason to believe’ that the stamps were counterfeited.[2]

(e) Having possession of counterfeit Government stamp.- Whoever has in his possession any stamp which he knows to be a counterfeit of any stamp issued by Government for the purpose of revenue, intending to use, or dispose of the same as a genuine stamp, or in order that it may be used as a genuine stamp, is punishable u/s. 259 with 7 years’ imprisonment and fine.

(f) Using as genuine a Government stamp known to be a counterfeit.- Whoever uses a s genuine any stamp, knowing it to be counterfeit of any stamp issued by Government for the purpose of revenue, is punishable u/s. 260 with 7 years’ imprisonment and fine.

(2.2) REMOVAL OR USE OF USED STAMP

(a) Destroying or removing a stamp from document a stamp used.- Section 261 says that whoever, fraudulently or with intent to cause loss to the Government, removes of effaces from any substance, bearing any stamp issued by Government for the purpose of revenue, any writing or document for which such stamp has been used, or removes from any writing or document a stamp which has been used for such writing or document, in order that such stamp may be used for a different writing or document, it is punishable with 3 years’ imprisonment and/or fine.

(b) Using Government stamp known to have been before used.- Whoever, fraudulently or with intent to cause loss to the Government, uses for any purpose a stamp issued by Government for the purpose of revenue, which he knows to have been before used, is punishable u/s. 262 with 2 years’ imprisonment and/or fine.

(c) Erasure of mark denoting that stamp has been used.- Whoever, fraudulently or with intent to cause loss to Government, erase or removes from a stamp issued by the Government for the purpose of revenue, any mark, put or impressed upon such stamp for the purpose of denoting that the same has been used, or knowingly has in his possession or sells or disposes of any such stamp from which such mark has been erased or removed, or sell or disposes of any such stamp which he knows to have been used, is punishable u/s. 263 with 3 years’ imprisonment and/or fine.

(2.3) PROHIBITION OF FICTITIOUS STAMPS  

According to section 263A following act are punishable up to fine of Rs. 200 –

(a)     Makes, knowingly utters, deals in or sells any fictitious stamps, or knowingly uses for any postal purpose any fictitious stamp, or

(b)     Has in his possession, without lawful excuse, any fictitious stamp, or  

(c)     Makes or, without lawful excuse, has in his possession any die, plate, instrument or materials for making any fictitious stamp.

Any such stamps, die, plate, instrument or materials in the possession of any person for making any fictitious stamp may be seized and, if seized shall be forfeited.

In this section “fictitious stamp” means any stamp falsely purporting to be issued by the Government for the purpose of denoting a rate of postage, or any facsimile or imitation or representation, whether on paper or otherwise, of any stamp issued by Government for that purpose.

(2.4) CLASSIFICATION OF OFFENCES RELATING TO STAMP

(3) OFFENCE RELATING TO CURRENCY-NOTES AND BANK-NOTES

Sections 498A to 498D were inserted in IPC by Act 12 of 1889 and section 489E was inserted in 1943.  The expression “bank-note” means a promissory note or engagement for the payment of money to bearer on demand issued by any person carrying on the business of banking in any part of the world, or issued by or under the authority of any State or Sovereign Power, and intended to be used as equivalent to, or as a substitute for money.

In fact, sections 489A to 489E deal with various economic offences in respect of forged or counterfeit currency notes or bank notes. The object of legislature in enacting these provisions is not only to protect the economy of the country but also to provide adequate protection to currency notes and bank notes.

(3.1) OFFENCE OF COUNTERFEITING CURRENCY NOTES

(a) Counterfeiting currency-notes or bank-notes.-Whoever counterfeits, or knowingly performs any part of the process of counterfeiting, any currency-note or bank-note, is punishable u/s. 489A with life imprisonment/ imprisonment up 10 years and fine.

Section 489A not only deals with complete act of counterfeiting but also covers the case where the accused performs any part of the process of counterfeiting. Therefore, if the material shows that the accused knowingly performed any part of the process of counterfeiting, Section 489A becomes applicable.

(b) Using as genuine, forged or counterfeit currency-notes or bank-notes.- Whoever sells to, or buys or receives from, any other person, or otherwise traffics in or uses as genuine, any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, is punishable u/s. 489B with life imprisonment/ imprisonment up 10 years and fine.

Section 489B relates to using as genuine forged or counterfeited currency notes or bank notes. The object of Legislature in enacting this section is to stop the circulation of forged notes by punishing all persons who knowing or having reason to believe the same to be forged do any act which could lead to their circulation.

Mens rea in counterfeiting notes.- A mens rea of offences under Sections 489B and 489C is, “knowing or having reason to believe the currency-notes or bank-notes are forged or counterfeit.” Without mens rea selling, buying or receiving from another person or otherwise trafficking in or using as genuine forged or counterfeit currency-notes or bank-notes, is not enough to constitute offence under Section 489B. So also possessing or even intending to use any forged or counterfeit currency-notes or bank-notes is not sufficient to make out a case under Section 489C in the absence of the mens rea.[3] No material is brought on record by the prosecution to show that the appellant had the requisite mens rea. The prosecution was failed to establish the crucial ingredients of Sections 489-B and 489-C. Therefore, the order of conviction was set aside.[4]

(c) Possession of forged or counterfeit currency-notes or bank-notes.- Whoever has in his possession any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, is punishable u/s. 489C with 7 years’ imprisonment and/or fine.

In view of the credible, cogent and reliable evidence tendered, the inevitable conclusion is that the appellants have been rightly convicted under Section 120B read with Sections 489A, 489C and 489D, IPC and separately under Section 489C of the Code. The sentences as imposed do not warrant interference, particularly in view of the object for which these provisions have been enacted.[5]

In fact, section 489C deals with possession of forged or counterfeit currency notes or bank notes. It makes possession of forged and counterfeited currency notes or bank notes punishable. Possession and knowledge that the currency notes were counterfeited notes are necessary ingredients to constitute offence under Section 489C and 489D.

Foreign currency included in currency notes.- The expression ‘currency notes’ is large and wide enough in its amplitude to cover the currency notes of any country. Section 489C is not restricted to Indian currency note alone but it includes dollar also and it applies to American dollar bills.[6]

(d) Making or possessing instruments or materials for counterfeiting currency-notes.-  Whoever makes, or performs, any part or the process of making, or buys or sells or disposes of, or has in his possession, any machinery, instrument or material for the purpose of being used, or knowing or having reason to believe that it is intended to be used, for forging or counterfeiting any currency-note or bank-note, is punishable u/s. 489D with 10 years’ imprisonment and/or fine.

The wording of Section 489D is very wide and would clearly cover a case where a person is found in possession of machinery, instrument or materials for the purpose of being used for counterfeiting currency notes, even though the machinery, instruments or materials so found were not all the materials particular required for the purpose of counterfeiting.

(e) Making or using documents resembling currency-notes or bank-notes.- According to section 489E whoever makes, or causes to be made, or uses for any purpose whatsoever, or delivers to any person, any document purporting to be, or in any way resembling, or so nearly resembling as to be calculated to deceive any currency-note or bank shall be punished with fine up to one hundred rupees.

If any person, whose name appears on a document, refuses, without lawful excuse, to disclose to a police-officer on being so required the name and address of the person by whom it was printed or otherwise made, he shall be punished with fine up to Rs. 200/-.

(3.2) CLASSIFICATION OF OFFENCES OF COUNTERFEITING CURRENCY NOTES

(4) OFFENCES RELATING TO WEIGHTS AND MEASURES 

Chapter XIII (sections 264 to 267) of the Code deals with offences relating to weights and measures. This chapter is very small and contains only four offences, namely –

(a)   Fraudulent use of false instrument for weighing under section 264.

(b)   Fraudulent use of false weight or false measure of length or capacity is an offence under section 265.

(c) Possession of false weight or measure.-Whoever is in possession of any instrument for weighing, or of any weight, or of any measure of length or capacity, which he knows to be false, intending that the same may be fraudulently used, is an offence under section 266.

(d)  Making or selling false weight or measure.- Whoever makes, sells or disposes of any instrument for weighing, or any weight, or any measure of length of capacity which he knows to be false, in order that the same may be used as true, or knowing that the same is likely to be used as true, is an offence under section 267 of IPC.

The applicant is a licenced opium dealer in the town of Sambhar. The Station House Officer, Sambhar received a complaint that the applicant kept two sets of weights in his shop and that one set of the weights was less in weight than the standard weight, and that he defrauded the public by using false weights. The Station House Officer made a search of the shop of the accused under Section 153 of CrPC, 1898 and he recovered two sets of weights. The weights were recovered from beneath the gunny bag on which the applicant was sitting at the time of recovery. The person was charged for offences under Sections 265 and 266 of IPC. The applicant was convicted under section 266 of IPC and sentenced to undergo simple imprisonment for three months and to pay a fine of Rs. 300/- or in default of payment of fine to undergo 20 days simple imprisonment. The high Court upheld the sentence.[7]

(4.1) CLASSIFICATION OF OFFENCES

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[1]     Ranchod Mula, (1961) 2 Cr.LJ 472.

[2]     Jyoti Parshad v. State of Haryana, AIR 1993 SC 1167.

[3]     M. Mammutti v. State of Karnataka, AIR 1979 SC 1705 : (1979) 4 SCC 723; Umashanker v. State of Chhattisgarh, AIR 2001 SC 3074.

[4]     Ashok Baburao Shinde v. State of Maharashtra, 2005(1) Bombay C.R. (Cri) 401; see also Javed Abdul Aziz Shaikh v. State of Maharashtra, 2010 ALL MR (Cri) 2512.

[5]     K. Hashim v. State of Tamil Nadu, AIR 2005 SC 128.

[6]     State of Kerala v. Mathai Verghese, AIR 1987 SC 33.

[7]     Bansidhar v. State of Rajasthan, AIR 1959 Raj 191 : 1959 CriLJ 1112.