Gujarat High Court
Vishalbhai Umeshbhai Padiya vs State Of Gujarat on 17 February, 2025
NEUTRAL CITATION
R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL MISC.APPLICATION (FOR SUCCESSIVE REGULAR BAIL -
AFTER CHARGESHEET) NO. 1313 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE DIVYESH A. JOSHI Sd/-
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Approved for Reporting Yes No
No
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VISHALBHAI UMESHBHAI PADIYA
Versus
STATE OF GUJARAT
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Appearance:
MR.PINANK J RAIYANI(10166) for the Applicant(s) No. 1
MR. ROHAN RAVAL, LD. ADDL. PUBLIC PROSECUTOR for the
Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE DIVYESH A. JOSHI
Date : 17/02/2025
ORAL JUDGMENT
1. Rule returnable forthwith. Learned APP waives service of notice of rule for and on behalf of the respondent-State.
2. The present successive application is filed under Section 483 of the Bhartiya Nagrik Suraksha Sanhita, 2023, for regular bail in connection with the FIR being C.R. No.11213021230363 of 2023 registered with the Jasdan Police Station, Rajkot of the offence punishable under Sections 489(A), 489(B), 489(C), 489(D) & 114 of the Indian Penal Code.
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3. Briefly stated, facts of the present case are that on 17.06.2023, while the complainant, namely, B.C. Miyatra along with the Police Inspector and other police staffers were on patrolling, received a tip-off near Gadadhiya Cross-road, Jasdan-Aatkot bypass road that one Vishal Umeshbhai Padiya, a resident of Rajkot who is dealing in fake Indian currency notes, would be coming on his motorcycle bearing its Registration No.GJ-03-FS-0058 from Rajkot to Jasdan Gadadhiya Cross-road for the purpose of exchanging the fake currency notes. On the basis of this information, a raiding team was formed to apprehend the accused person at the spot. Thereafter, after following due procedure, a raid was conducted, and the accused, namely, Vishal Umeshbhai Padiya was apprehended near Gadadhiya Cross-road, and during search, 30 fake Indian currency notes of the denomination of Rs. 500/- were recovered from his possession. During the course of investigation, the accused had disclosed that he himself is indulged in printing/manufacturing the fake Indian currency notes at his house, and in doing so, he got the papers of security thread mark On-line from alibaba.com and then scanned the original notes in his printer cum scanner and got the printouts by using the colour printer, and thereby used to make the counterfeit currency notes. It is further the case of prosecution that 30 fake currency notes of 500 denomination, valued at Rs. 15,000/-, were recovered at the instance of present applicant/accused. With this sort of allegations, the present FIR has been registered.
4. Learned counsel for the applicant has argued that the applicant has been falsely implicated in the present case by Page 2 of 13 Uploaded by ABDULVAHID A SHAIKH(HC00955) on Wed Feb 19 2025 Downloaded on : Wed Feb 19 22:23:09 IST 2025 NEUTRAL CITATION R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025 undefined the police officials, and was arrested on 19.06.2023, and then charge-sheet also came to be filed on 18.08.2023. It is argued that the recovery of alleged fake Indian currency notes has been witnessed only by the police officials despite the fact that there were number of public persons present at the spot. It is further argued that this is a third round of litigation, and the earlier two bail applications came to be withdrawn with a liberty to approach this Court again after some considerable period of time. Lastly, it was withdrawn on 17.12.2024 and the co-accused has already been released on bail way back on 16.01.2024. Learned counsel for the applicant has further argued that out of total 36 witnesses, only 02 witnesses have been examined so far since the withdrawal of the earlier bail application, which is indicative of the fact that the trial is likely to take considerable long period of time, whereas the applicant-accused is in jail since 19.06.2023, i.e, for more than one and a half years, and as such, keeping the applicant- accused behind the bar for such an indefinite period would be nothing but a pre-trial conviction. Moreover, during the course of investigation, although the Muddamal was sent to the FSL, Gandhinagar, however, yet the report of the FSL has not been received or produced before the trial court. Learned counsel has also argued that earlier the applicant-accused had granted respite in the form of temporary bail and during that period, not only he attended the trial proceedings, but also surrendered in time. Learned counsel for the applicant has further argued that the applicant-accused is a young man, aged about 29 years, having no past criminal antecedents. Thus, it is prayed that the present applicant/accused be released on bail.
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5. Per contra, learned APP appearing on behalf of the State has argued that present applicant/accused is involved in the supply and circulation of fake Indian currency notes. As per the complaint, he himself is printing/manufacturing the fake currency notes at his home, and the equipments/tools allegedly used in printing/manufacturing fake currency notes have also been recovered during the course of investigation. The applicant-accused was caught red-handed by the raiding party on the spot along with the counterfeit currency notes. valued at Rs.15,000/-. It is further argued that the role of the accused who has been enlarged on bail stands on a different footing. He was the person whom the applicant-accused handed over the fake currency notes for circulation in the market. The applicant-accused is the main perpetrator. He is the manufacturer of the fake currency notes. The applicant accused is involved in the commission of economic offence. Therefore, it is prayed that the bail application of the present applicant be dismissed as he is the main conspirator in this case.
6. This Court has heard the arguments addressed by learned counsel for the applicant and learned APP for the State and has perused the material placed on record.
7. Section 489A to 489D of the Indian Penal Code provides as under:-
"489A. Counterfeiting currency notes or banknotes. Whoever counterfeits, or knowingly performs any part of the process of counterfeiting, any currency note or banknote, shall be punished with [imprisonment for life], or with imprisonment of either description for a term which may extend to ten years, and Page 4 of 13 Uploaded by ABDULVAHID A SHAIKH(HC00955) on Wed Feb 19 2025 Downloaded on : Wed Feb 19 22:23:09 IST 2025 NEUTRAL CITATION R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025 undefined shall also be liable to fine.
489B. Using as genuine, forged or counterfeit currency - notes or banknotes. 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 banknote, 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.
489C. Possession of forged or counterfeit currency notes or banknotes. Whoever has in his possession any forged or counterfeit currency note or banknote, 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, shall be punished with imprisonment of either description for a term which may extend to seven years, or with fine, or with both.
489D. Making or possessing instruments or materials for gorging or counterfeiting currency - notes or banknotes. Whoever makes, or performs, any part of 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 notes or banknotes, 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."
8. The aforesaid provisions (Section 489A to 489D) of Indian Penal Code, 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 Page 5 of 13 Uploaded by ABDULVAHID A SHAIKH(HC00955) on Wed Feb 19 2025 Downloaded on : Wed Feb 19 22:23:09 IST 2025 NEUTRAL CITATION R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025 undefined adequate protection to currency notes and bank notes. [kindly see AIR 2005 SC 128 - K. Hasim v. State of Tamil Nadu]
9. Sections 489A, 489B, 489C, 489D and 489E were specially inserted by the legislature in the IPC to protect the economy of the country.
10. The Supreme Court in K Hashim v. State of Tamil Nadu, (2005) 1 SCC 237, has explained the legislative intent of the provisions pertaining to counterfeiting of currency. Paragraph 46 to 50 of the said judgment reads as under:-
"46. Sections 489-A to 489-E deal with various economic offences in respect of forged or counterfeit currency notes or banknotes. The object of the 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 banknotes.
47. Section 489-A 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 489-A becomes applicable.
48. Similarly Section 489-B relates to using as genuine forged or counterfeited currency notes or banknotes. The object of the 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.
49. Section 489-C deals with possession of forged or counterfeit currency notes or banknotes. It makes possession of forged and counterfeited currency notes or banknotes punishable. Possession and knowledge that the currency notes were counterfeited notes are necessary ingredients to constitute offence under Sections 489-C and 489-D. As was observed by this Court Page 6 of 13 Uploaded by ABDULVAHID A SHAIKH(HC00955) on Wed Feb 19 2025 Downloaded on : Wed Feb 19 22:23:09 IST 2025 NEUTRAL CITATION R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025 undefined in State of Kerala v. Mathai Verghese [(1986) 4 SCC 746 :
1987 SCC (Cri) 3 : AIR 1987 SC 33] the expression "currency notes" is large and wide enough in its amplitude to cover the currency notes of any country. Section 489-C is not restricted to Indian currency note alone but it includes the dollar also and it applies to American dollar bills.
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."
11. Over a period of time, number of incidents have come in light where attempts are being made to destabilize the economy of the Country either by illegally smuggling or pumping the fake Indian currency notes into India or by manufacturing the same in the country itself. The intention behind the same is to damage the Indian economy by circulating the fake currency notes in the market whether manufactured in India or being pumped/smuggled through external sources. The technology used in printing counterfeit Indian notes is so sophisticated that ordinary people or even exchange employees cannot distinguish them from the original notes. Therefore, in order to control the said menace completely, the Government machinery needs to take appropriate steps to ensure that there is no further rise in the circulation of fake notes and that the problem is uprooted, as also the concerned Authority should launch a massive educational campaigns for the people at large on how to identify counterfeit notes.
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12. The case of the applicant is that the other co-accused has already been granted bail by this Court. However, this Court is of the opinion that the applicant cannot claim parity with them. The applicant is accused of offences under Sections 489A, 489B, 489C and 489D of the IPC. As stated earlier, the applicant 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 applicant absconding/jumping bail or continuing to indulge in the same activity on release cannot be ruled out at this juncture. It is also found out from the record that the Investigating Officer has recovered fake currency notes, i.e, 30 in numbers in the denomination of Rs.500/- aggregating to Rs.15,000/- from the conscious and physical possession of the applicant-accused and at the time of seizure of the said fake currency notes, a detailed Panchnama in the presence of the Panchas was drawn and the said Panchnama is part and parcel of the record. The applicant has been found in possession of Fake Indian Currency Notes and the purpose of these fake currency notes was to circulate it in the market, lest there is no point having counterfeit currency notes. Not only that, the applicant-accused herein is the key accused, who himself was manufacturing/printing the fake currency notes at his house. The maximum punishment for offence under Section 489D is imprisonment for life. This Court is therefore not inclined to grant bail to the applicant at this stage.
13. The aforesaid submission of learned counsel for the Page 8 of 13 Uploaded by ABDULVAHID A SHAIKH(HC00955) on Wed Feb 19 2025 Downloaded on : Wed Feb 19 22:23:09 IST 2025 NEUTRAL CITATION R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025 undefined applicant to grant bail to the applicant on the ground that the other co-accused has been granted bail, also cannot be accepted as parity is not the law. While applying the principle of parity, the Court is required to focus upon the role attached to the accused whose application is under consideration. In this context, I would like to refer to and rely upon some of the relevant observations made by the Hon'ble Apex Court in the case of Tarun Kumar vs. Asst. Director, Directorate of Enforcement, Special Leave Petition No.9431 of 2023, decided on 20.11.2023, which read thus;
"18. The submission of learned Counsel Mr. Luthra to grant bail to the appellant on the ground that the other co-accused who were similarly situated as the appellant, have been granted bail, also cannot be accepted. It may be noted that parity is not the law. While applying the principle of parity, the Court is required to focus upon the role attached to the accused whose application is under consideration. It is not disputed in that the main accused Sh. Kewal Krishan Kumar, Managing Director of SBFL, and KMP of group companies and the other accused Devki Nandan Garg, owner/ operator/ controller of various shell companies were granted bail on the ground of infirmity and medical grounds. The co-accused Raman Bhuraria, who was the internal auditor of SBFL has been granted bail by the High Court, however the said order of High Court has been challenged by the respondent before this Court by filing being SLP (Crl.) No. 9047 of 2023 and the same is pending under consideration. In the instant case, the High Court in the impugned order while repelling the said submission made on behalf of the appellant, had distinguished the case of Raman Bhuraria and had observed that unlike Raman Bhuraria who was an internal auditor of SBFL (for a brief period statutory auditor of SBFL), the applicant was the Vice President of Purchases and as a Vice President, he was responsible for the day-to-day operations of the company. It was also observed that the appellant's role was made out from the financials, where direct loan funds have been siphoned Page 9 of 13 Uploaded by ABDULVAHID A SHAIKH(HC00955) on Wed Feb 19 2025 Downloaded on : Wed Feb 19 22:23:09 IST 2025 NEUTRAL CITATION R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025 undefined off to the sister concerns of SBFL, where the appellant was either a shareholder or director. In any case, the order granting bail to Raman Bhuraria being under consideration before the coordinate bench of this Court, it would not be appropriate for us to make any observation with regard to the said order passed by the High Court.
19. It is axiomatic that the principle of parity is based on the guarantee of positive equality before law enshrined in Article 14 of the Constitution. However, if any illegality or irregularity has been committed in favour of any individual or a group of individuals, or a wrong order has been passed by a judicial forum, others cannot invoke the jurisdiction of the higher or superior court for repeating or multiplying the same irregularity or illegality or for passing similar wrong order. Article 14 is not meant to perpetuate the illegality or irregularity. If there has been a benefit or advantage conferred on one or a set of people by any authority or by the court, without legal basis or justification, other persons could not claim as a matter of right the benefit on the basis of such wrong decision."
14. Lastly, it may be noted that as held in catena of decisions, the economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offences having deep-rooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. Undoubtedly, economic offences have serious repercussions on the development of the country as a whole. To cite a few judgments in this regard are Y.S. Jagan Mohan Reddy vs. Central Bureau of Investigation, reported in (2013) 7 SCC 439, Nimmagadda Prasad vs. Central Bureau of Page 10 of 13 Uploaded by ABDULVAHID A SHAIKH(HC00955) on Wed Feb 19 2025 Downloaded on : Wed Feb 19 22:23:09 IST 2025 NEUTRAL CITATION R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025 undefined Investigation, (2013) 7 SCC 466, Gautam Kundu vs. Directorate of Enforcement (Prevention of Money- Laundering Act), Government of India Through Manoj Kumar, Assistant Director, Eastern Region, (2015) 16 SCC 1, State of Bihar and Another vs. Amit Kumar alias Bachcha Rai, (2017) 13 SCC 751. The Supreme Court taking a serious note with regard to the economic offences had observed as back as in 1987 in case of State of Gujarat vs. Mohanlal Jitamalji Porwal and Another, (1987) 2 SCC 364 as under:-
"5... The entire community is aggrieved if the economic offenders who ruin the economy of the State are not brought to books. A murder may be committed in the heat of moment upon passions being aroused. An economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the community. A disregard for the interest of the community can be manifested only at the cost of forfeiting the trust and faith of the community in the system to administer justice in an even-handed manner without fear of criticism from the quarters which view white collar crimes with a permissive eye unmindful of the damage done to the National Economy and National Interest..."
15. The present case raises grave concerns regarding the involvement of accused person in the distribution and circulation of counterfeit currency notes. The applicant- accused is not merely the supplier or was circulating the fake currency notes, but as per the case of the prosecution, he is the manufacturer of the counterfeit currency notes, which is an offence not only effects the individuals but also the Society as a whole, and the victims of the same are, by and large, the Page 11 of 13 Uploaded by ABDULVAHID A SHAIKH(HC00955) on Wed Feb 19 2025 Downloaded on : Wed Feb 19 22:23:09 IST 2025 NEUTRAL CITATION R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025 undefined laypersons.
16. It is argued by learned counsel for the applicant that applicant is in jail since one and half years and therefore he deserves to be released on bail. However, in my opinion, the period of incarceration already spent by the accused cannot be applied as a straight jacket formula in every cases, but it must be seen in the light of the severity of the offence and its subsequently repercussions, as also the circumstantial flexibility. Moreover, recently, the Supreme Court, while dealing with the petition challenging the order of grant of bail, though upheld the order of the High Court, has observed something very important to be kept in mind by the trial courts as well as by the High Courts that the Court, be it the trial court or the High Court should be loath in entertaining the bail application of the accused in a serious offence if the trial has commenced. In the said decision titled as X Versus STATE OF RAJASTHAN & Anr., Special Leave Petition (Criminal) No.13378 of 2024, penned by His Lordship Justice J.B. Pardiwala, it has been observed as under;
"14. Ordinarily in serious offences like rape, murder, dacoity, etc., once the trial commences and the prosecution starts examining its witnesses, the Court be it the Trial Court or the High Court should be loath in entertaining the bail application of the accused.
xx xx xx xx
16. We are of the view that the aforesaid is not a correct practice that the Courts below should adopt. Once the trial commences, it should be allowed to reach to its final conclusion which may either result in the conviction of the accused or acquittal of the accused. The moment the Page 12 of 13 Uploaded by ABDULVAHID A SHAIKH(HC00955) on Wed Feb 19 2025 Downloaded on : Wed Feb 19 22:23:09 IST 2025 NEUTRAL CITATION R/CR.MA/1313/2025 JUDGMENT DATED: 17/02/2025 undefined High Court exercises its discretion in favour of the accused and orders release of the accused on bail by looking into the deposition of the victim, it will have its own impact on the pending trial when it comes to appreciating the oral evidence of the victim. It is only in the event if the trial gets unduly delayed and that too for no fault on the part of the accused, the Court may be justified in ordering his release on bail on the ground that right of the accused to have a speedy trial has been infringed."
17. One more threat by supplying or circulating or manufacturing the fake currency notes is that the individuals who unknowingly come into possession of counterfeit currency also face significant risks and repercussions. The crime of counterfeiting the act of making fake money to defraud the people at large, and it is one type of forgery.
18. Taking into consideration the facts and circumstances of the case, gravity of the offence and the manner, in which, the applicant was found in possession of fake/counterfeit currency notes, and was trying to use it genuine and taking in view that the act of the present applicant is against the economy of the country, I am not inclined to exercise discretion in favour of the applicant- accused.
19. In the result, the present application fails and is hereby rejected. Rule is discharged.
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