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Karnataka High Court

Rudresha J vs State Of Karnataka on 10 July, 2023

Author: Mohammad Nawaz

Bench: Mohammad Nawaz

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                                                 NC: 2023:KHC:23775
                                                 CRL.P No. 4366 of 2023




                    IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                        DATED THIS THE 10TH DAY OF JULY, 2023

                                        BEFORE
                      THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ
                         CRIMINAL PETITION NO. 4366 OF 2023
               BETWEEN:

               1.    RUDRESHA J.,
                     S/O LATE J JAYANNA
                     AGED ABOUT 39 YEARS
                     R/O DODDAGOPPANAHALLI VILLAGE
                     BHADRAVATHI TALUK
                     SHIVAMOGGA DISTRICT-577 302.

                     ADDRESS NO.02
                     INDIRANAGAR AREA
                     NEAR CHURCH, NARASIMHARAJAPURA
                     CHIKKAMAGALURU DISTRICT-577 134.

                     PRESENT ADDRESS
                     VIDYAMANYA NAGAR
                     10TH CROSS, ANDRAHALLI MAIN ROAD
Digitally            BANGALORE - 560 091.
signed by
SUMITHRA
R              2.  RAJESHA S
Location:          S/O SURESHA
High Court         AGED ABOUT 28 YEARS
of Karnataka       R/O NO 254, MOGERAHALLI (MANTI) VILLAGE
                   PRESENT P HOSAHALLI
                   SIRRANGAPATNA TALUK
                   MANDYA DISTRICT-571 606.
                                                         ...PETITIONERS
               (BY SRI. KULKARNI SRINATH, ADVOCATE)
               AND:

               1.    STATE OF KARNATAKA
                     BY HARIHARA RURAL POLICE,
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                                         NC: 2023:KHC:23775
                                         CRL.P No. 4366 of 2023




    REP BY STATE PUBLIC PROSECUTOR
    HIGH COURT OF KARNATAKA
    HIGH COURT BUILDING
    BANGALORU-560 001.
                                            ...RESPONDENT
(BY SRI.V.S.HEGDE, SPP-II A/W. SRI. H.S.SHANKAR, HCGP)
     THIS CRL.P IS FILED U/S 439 CR.PC PRAYING TO
ENLARGE THE PETITIONERS ON BAIL IN THE CR.NO.128/2022
REGISTERED IN HARIHARA RURAL POLICE STATION,
DAVANAGERE DISTRICT, FOR THE OFFENCE P/U/S 489A, 489B,
489C AND 489D R/W SEC. 34 OF IPC, PENDING ON THE FILE
OF PRINCIPAL CIVIL JUDGE AND JMFC, HARIHARA.

     THIS PETITION IS COMING ON FOR ORDERS, THIS DAY,
THE COURT MADE THE FOLLOWING:
                                 ORDER

Petitioners/accused Nos.2 and 3 have preferred this petition under Section 439 of Cr.P.C. seeking to enlarge them on bail in Crime No.128/2022 registered at Harihara Rural Police Station, Davanagere for the offence punishable under Sections 420, 489A and 489B of IPC.

2. Heard the learned counsel for petitioner and learned SPP-2 for respondent/State and perused the material on record.

3. Brief facts of the case are that, on receiving an information over phone that counterfeit Indian currency -3- NC: 2023:KHC:23775 CRL.P No. 4366 of 2023 notes are found scattered over the roof of the cattle shed belonging to one Chowdappa of Hottigenahalli Village, the Police sub-inspector of Harihara Rural Police station registered the case against unknown persons and proceeded to the spot along with his staff and panchas and seized about 632 counterfeit currency notes of Rs.500/- denomination, worth Rs.3,16,000/-.

4. Accused No.1-Kuberappa came to be arrested on 20.08.2022 in Crime No.103/2022 of Hospete Town Police Station, Vijayanagar, from one Venkateshwara lodge in Hospete and from his possession counterfeit currency notes of Rs.500/- denomination valued at Rs.41,000/- was recovered. On 21.08.2022, accused Nos.2 to 5 were arrested and at their instance printing machine, laptop etc. which were alleged to have been used for manufacturing the counterfeit currency notes were seized.

5. The learned counsel for petitioners has contended that in so far as Crime No.103/2022 of Hospete Town Police Station is concerned, both these accused, -4- NC: 2023:KHC:23775 CRL.P No. 4366 of 2023 arraigned as accused Nos.2 and 3 in the said case have been enlarged on bail by this Court in Criminal Petition No.100747/2023. He has furnished a copy of the order dated 11.05.2023 passed by a coordinate Bench of this Court enlarging the said petitioners on bail on certain terms and conditions. It is his contention that in the present case there is no material to show that the petitioners are involved in the alleged offence and inspite of grant of bail in the connected case, they are languishing in judicial custody. It is further contended that the investigation is completed and charge sheet is also filed. He submits that the petitioners are ready and willing to abide by any conditions and they are ready to furnish adequate surety to ensure their regular appearance before the trial Court. He therefore seeks to enlarge the petitioners on bail.

6. The learned SPP has vehemently opposed the prayer seeking bail contending that the offence alleged is serious in nature where the petitioners along with accused -5- NC: 2023:KHC:23775 CRL.P No. 4366 of 2023 No.1 are involved in manufacturing and circulation of counterfeit currency notes. He contends that the offence now committed by the petitioners has the propensity of having a disastrous effect on the country's economy. He contends that from these petitioners the equipments used to print the fake currency notes as well as about 136 fake currency notes have been recovered and therefore, he contends that there are sufficient material against the petitioners showing their involvement in the commission of offence. Accordingly, seeks to reject the petition.

7. The learned SPP has relied on a decision of the Hon'ble Apex Court reported in (2005) 1 SCC 237 in the case of 'K.Hashim Vs. State of T.N.' and the judgment of the High Court of Delhi, in 'Tabrez Ahmed Vs. State NCT of Delhi' in bail application No.1490/2021 disposed on 23.08.2021.

8. The relevant para Nos.46, 48 and 50 relied on by the learned SPP in the case of K.Hashim (Supra) are extracted hereunder:

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NC: 2023:KHC:23775 CRL.P No. 4366 of 2023
46. Sections 489-A to 489-E 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.
48. Similarly Section 489-B 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.
50. The wording of Section 489-D 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 (sic) required for the purpose of counterfeiting.

9. Similarly para Nos.3, 5 and 8 of the judgment relied on by the learned SPP in Tabrez Ahmed (supra) are extracted hereunder:

3. A perusal of the Status Report shows that the petitioner is a part of a well-organised syndicate.

The syndicate is involved in printing, procuring, circulating Fake Indian Currency Notes. Material on record discloses that the petitioner was arrested with a sum of Rs.44,000/- Fake Indian Currency Notes when the raid took place at Ramesh Park, Laxmi Nagar on 20.12.2019. The recovery of laptop from the petitioner discloses that the laptop was used by -7- NC: 2023:KHC:23775 CRL.P No. 4366 of 2023 accused Danish to design the fake currency notes. The Call Detail Records shows that all the accused were in constant touch with each other.

5. The process of making fake currency notes has reached a level of immaculate sophistication due to which these fake currency notes are indistinguishable from real currency notes and have become a high profiteering business. Circulation of fake currency notes is severely detrimental to the economy and hampers the financial regulation of the country. The production of counterfeit currency notes often stems from dissatisfaction with a country's growth, and is therefore, aimed at financially disintegrating and destabilising the steady equilibrium of liquidity in the economy. Counterfeiting of currency notes breeds drug smuggling, purchase of illegal arms and ammunition, funding of undesirable terrorist outfits, cross-border money laundering, human trafficking and various other phenomena. It has a disastrous effect on the economy.

8. The case of the petitioner is that other co- accused had been granted default bail. However, this Court is of the opinion that the petitioner cannot claim parity with them. The petitioner is accused of offences under Section 489A, 489B, 489C, 489D, 489E and 120B. The charges are yet to be framed. As stated earlier, the petitioner is a part of the well- oiled machinery/syndicate dealing in printing and circulation of fake currency notes and it has the propensity of having a disastrous effect on the country's economy. The nature of the activity, the chances of the petitioner absconding/jumping bail or continuing to indulge in the same activity on release cannot be ruled out at this juncture. The petitioner has been found in possession of Fake Indian Currency Notes and the purpose of these fake currency notes were meant for circulation lest there is no point having counterfeit currency notes. Maximum punishment for offence under Section -8- NC: 2023:KHC:23775 CRL.P No. 4366 of 2023 489D is imprisonment for life. This Court is therefore not inclined to grant bail to the petitioner at this stage.

10. It is no doubt true that the offence alleged to have been committed by the petitioners are grave in nature. As rightly contended by the learned SPP, circulation of fake currency notes is detrimental to the economy and hampers the financial regulation of the country. However, while considering a bail petition, each case has to be appreciated on its facts and circumstances and the material or evidence collected against the accused.

11. In the present case, a credible information was received by the police on 18.08.2022 at about 8.30 a.m. that some unknown persons have thrown counterfeit currency notes on the roof of the cattle shed belonging to one Chowdappa son of Nagappa of Kottigenahalli Village. As such, the police along with the panch witnesses went to the spot and seized about 632 counterfeit currency notes of Rs.500 denomination. It is alleged that thereafter they searched the house of accused No.1 by name Kuberappa. -9-

NC: 2023:KHC:23775 CRL.P No. 4366 of 2023 From the said house 14 counterfeit currency notes of Rs.500 denomination were seized. What is relevant to be seen is that, in so far as the present case is concerned, there is absolutely no recovery at the instance of the petitioners i.e., accused Nos.2 and 3. The police have recorded the statements of CWs.11 to 13. Their statements would reveal the seizure of 632 counterfeit currency notes which were found scattered on the roof of a cattle shed belonging to Chowdappa i.e., CW.11. Further, the statement of CW.13 namely the owner of the house in which accused No.1 was staying reveal that in the said house about 14 counterfeit currency notes were seized. None of these witnesses have stated that these petitioners were residing in the said house. They have also not stated that they have seen these petitioners now arraigned as accused Nos.2 and 3 throwing the notes on the roof of the cattle shed or that they have seen them in possession or circulating the counterfeit currency notes.

12. It is relevant to mention that accused No.1 and these petitioners were arrested in connection with Crime

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NC: 2023:KHC:23775 CRL.P No. 4366 of 2023 No.103/2022 of Hospete Town Police Station. These petitioners were found in possession of 136 counterfeit currency notes in the said case apart from other equipments used for printing the counterfeit currency notes. Undisputedly, the petitioners have been enlarged on bail by this Court in the said case. The State has not challenged the order granting bail to the accused persons. Hence, recovery in a different case, where the petitioners are enlarged on bail cannot be a basis for detaining the petitioners in the present case. There is no recovery of any incriminating materials at their instance in this case.

13. In the above facts and circumstances, the petitioners/accused Nos.2 and 3 in Crime No.128/2022 of Harihara Rural Police Station are entitled for bail, however, on stringent terms and conditions. Accordingly, the following:

ORDER Petition is allowed.
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NC: 2023:KHC:23775 CRL.P No. 4366 of 2023 Petitioners/accused Nos.2 and 3 in Crime No.128/2022 of Harihara Rural Police Station, shall be enlarged on bail subject to following conditions:
1. Petitioners shall execute a personal bond in a sum of Rs.1,00,000/-

(Rupees One Lakh only) each with two sureties for the likesum to the satisfaction of the jurisdictional Court.

2. Petitioners shall furnish proof of their residential address and shall inform the Investigating Officer/Court, if there is change in address.

3. Petitioners shall not directly or indirectly tamper with the prosecution witnesses.

4. Petitioners shall mark their attendance before the jurisdictional Police Station once in a week, preferably on a Sunday between 10.00 a.m. and 1.00 p.m., for a period of six months.

5. Petitioners shall not indulge in committing any offence.

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NC: 2023:KHC:23775 CRL.P No. 4366 of 2023

6. Petitioners shall appear before the Trial Court regularly.

Sd/-

JUDGE HB List No.: 1 Sl No.: 54