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Karnataka High Court

D.A. Abdul Latheef vs The State Of Karnataka on 28 January, 2026

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                                                           NC: 2026:KHC:4900
                                                       CRL.A No. 618 of 2013
                                                   C/W CRL.A No. 418 of 2013

                   HC-KAR




                     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                        DATED THIS THE 28TH DAY OF JANUARY, 2026

                                           BEFORE
                            THE HON'BLE MR. JUSTICE G BASAVARAJA
                             CRIMINAL APPEAL NO. 618 OF 2013 (C)
                                            C/W
                              CRIMINAL APPEAL NO. 418 OF 2013


                   IN CRL.A No. 618/2013

                   BETWEEN:

                      D.A. ABDUL LATHEEF
                      S/O. M.G. AHMED,
                      AGED ABOUT 41 YEARS,
                      OCC: BUSINESS,
                      R/AT. INDIRA EXTENSION,
                      KUSHALNAGAR, KODLIPET POST,
                      SOMWARPET TALUK,
                      KODAGU DISTRICT-571 236.
Digitally signed
by SUVARNA T
Location: HIGH        ALSO AT:
COURT OF
KARNATAKA             BYADAGOTTA VILLAGE,
                      KODLIPET,
                      SOMWARPET TALUK,
                      KODAGU DISTRICT-571 236.
                      (NOW IN JUDICIAL CUSTODY)
                                                                ...APPELLANT
                   (BY SRI. M.H. HANEEF, ADVOCATE)
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                                    C/W CRL.A No. 418 of 2013

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AND:

     THE STATE OF KARNATAKA
     BY THE POLICE OF
     C.P.I. KUSHALNAGAR CIRCLE
     POLICE STATION
     KODAGU DISTRICT-571 236
                                                  ...RESPONDENT
(BY SRI. B. LAKSHMAN, HCGP)

     THIS CRL.A. IS FILED U/S.374(2) CR.P.C PRAYING TO SET
ASIDE THE ORDER OF CONVICTION AND SENTENCE DATED
05.04.2013 PASSED BY THE S.J., KODAGU, MADIKERI IN
S.C.NO.52/2007 - CONVICTING THE APPELLANT/ACCUSED FOR
THE OFFENCE P/U/S 489B AND SEC.120B OF IPC. THE
APPELLANT/ACCUSED IS SENTENCED TO UNDERGO R.I. FOR 7
YEARS AND PAY FINE OF RS.25,000/-, FOR THE OFFENCE
P/U/S 489B AND 120B OF IPC AND IN DEFAULT TO PAY FINE
TO   UNDERGO    R.I.   FOR   2     YEARS.   THE   SUBSTANTIVE
SENTENCES OF IMPRISONMENT SHALL RUN CONCURRENTLY
BUT NOT THE DEFAULT SENTENCE AND ETC.



IN CRL.A NO. 418/2013

BETWEEN:

     SRI. B. M. MOHAMMED HANEEF @ HANEEF
     S/O. LATE B. MOHAMMED KUNHI,
     AGED ABOUT 48 YEARS,
     TIMBER MERCHANT,
     R/AT BASAVESHWARA EXTENSION,
     KUSHALANAGAR,
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                                     CRL.A No. 618 of 2013
                                 C/W CRL.A No. 418 of 2013

HC-KAR




   NATIVE OF BELLARE VILLAGE,
   SULLIA TALUK-574 201.
                                              ...APPELLANT

(BY SRI. NISHIT KUMAR SHETTY, ADVOCATE)

AND:

   STATE OF KARNATAKA
   REPRESENTED BY STATE
   PUBLIC PROSECUTOR,
   HIGH COURT BUILDINGS,
   BANGALORE-560 001.
                                           ...RESPONDENT

(BY SRI. B. LAKSHMAN, HCGP)


    THIS CRL.A. IS FILED U/S.374(2) CR.P.C PRAYING TO
SET ASIDE THE JUDGMENT AND ORDER OF CONVICTION
JUDGMENT AND ORDER OF CONVICTION AND SENTENCE
DATED 05.04.2013 PASSED BY THE S.J., KODAGU, MADIKERI
IN S.C.NO.52/2007- CONVICTING THE APPELLANT/ACCUSED
FOR THE OFFENCE P/U/S 489C,489B AND SEC.120B OF IPC
AND ETC.


    THESE APPEALS, COMING ON FOR FURTHER ARGUMENTS,
THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:




CORAM:     HON'BLE MR. JUSTICE G BASAVARAJA
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                                       C/W CRL.A No. 418 of 2013

 HC-KAR




                   ORAL COMMON JUDGMENT

      Both appeals arise out of the judgment of conviction and

order on sentence passed by the Sessions Judge Kodagu,

Madikeri in S.C.No.52/2007 dated 05.04.2013.


      2.    Parties are referred to as per their rank before the

trial Court.


      3.     Brief facts leading to these appeals are that the

Inspector of Police, Kushalnagara Circle, submitted charge

sheet against the accused for the offence under Section 489-B,

489-C, 120B read with Section 34 of IPC.


      4.    It is alleged by the prosecution that on 02.09.2006,

PW4, B. R. Lingappa, then working as an Inspector in District

Crime      Detection   Branch,   Kodagu,    received   a   credible

information that two persons in Byachanahally were trafficking

counterfeit currency notes and were likely to come near Sathish

canteen in that village. On information, he went there with

CWs.7 to 10, Head Constables attached to the Crime Detection

Branch along with driver, PW.3 and two Panchas CW.3 and

CW.4. When they were waiting near the canteen, they found
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two persons moving in a suspicious manner. The police

informants told them that they were the persons who were

trafficking   counterfeit    currency    notes.   Accordingly,   police

officials surrounded those persons. One of them disclosed his

name as Muhammed Haneef and other as Latheef. They are

accused Nos.1 and 2 who have faced the trial in this case.

When accused No.1 was searched, in his pant pocket there

were 10 counterfeit currency notes of face value of Rs.1,000/-

each and ten more such notes of the face value of Rs.500/-

amounting to Rs.15,000/- in all. When enquired, the accused

No.1 told police officials that he, accused No.2 and one Suresha

@ Ashoka, Deepak, Akash, Kalam and others were trafficking in

counterfeit currency notes. The notes which were found with

accused No.1 were seized. Both the accused were taken to the

Kushalnagara police station and produced before PW.8-PSI.

PW.4 gave complaint as per Ex.P2 and also produced the

Mahazar as per Ex.P.1, under which the counterfeit notes were

seized. When the accused were searched, two mobile sets were

also found and they were also seized. The mobile sets were

also produced before P.W.8. On the basis of the complaint,

PW.8, registered a          case   in Crime   No.100/2006    for   the
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commission of alleged offence. He arrested the accused and

produced them before the Court. He handed over further

investigation   to     PW.10,   Circle   Inspector   of   Police,

Kushalanagar. After investigation, I.O. has submitted the

charge sheet against the accused for the alleged commission of

offences. After filing the charge sheet, case was registered in

C.C.420/2007 and the same case was committed to the Court

of Sessions. Case was registered in S.C.No.52/2007.


      5.   On hearing the charges, the trial Court framed the

charges against the accused for the alleged commission of

offences. Same was read over and explained to the accused.

Having understood the same, accused pleaded not guilty and

claimed to be tried.


      6. To prove the guilt of the accused, in all, 10 witnesses

were examined as PWs.1 to 10, 5 documents were marked as

ExsP.1 to P.5 and 24 material objects were marked as M.O.Nos.

1 to 24.


      7.   On closure of prosecution side evidence, statement

under Section 313 of Cr.P.C was recorded. Accused have totally

denied the evidence of prosecution witnesses. The mother of
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                                             C/W CRL.A No. 418 of 2013

 HC-KAR




the accused No.1 is examined as DW.1. On hearing the

argument, trial Court convicted the accused for the offence

under Section 489-B and 120-B of IPC. Accused No.1 is found

guilty of offence under Section 489-C and both the accused

found guilty for offence under Section 489-B and Section 120-B

of    IPC    and        passed   the   sentence   to    undergo    rigorous

imprisonment for 7 years and pay a fine of Rs.25,000/- each

for the offence under Section 489-B and 120-B of IPC and

further, accused No.1 to undergo rigorous imprisonment for a

period of 3 years and to pay ₹10,000 for the offence under

Section 489-C of IPC. Being aggrieved by the judgment of

conviction and order on sentence, accused No.1 has preferred

the   appeal       in    Crl.A.No.418/2013     and     accused    No.2   has

preferred the appeal in Crl.A.No.618/2013.


       8.    The learned counsel for the accused / appellant in

Crl.A.No.418, Sri. Nishit Kumar Shetty, would submit that the

impugned judgment of conviction and order on sentence

passed by the Court below against the appellants for the

offence under Section 489-B, 489-C and 120-B of IPC is highly

illegal,    unreasonable,        and   arbitrary. The    trial   Court   has

committed a serious irregularities and illegalities in appreciating
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the material evidence available on record and erred in

convicting    the     appellants   for    the   commission   of   alleged

offences. The entire approach made by the trial Court into the

matter in dispute is erroneous in law. The evidence placed on

record   by     the    prosecution       suffers   from   contradictions,

improvements, omissions and the Court below ought to have

given the benefit of doubt in favour of appellants. None of the

witnesses have deposed that appellants attempted to sell or

were trafficking the counterfeit notes. At best, only the offence

under Section 418-C would have been made against the

appellant.


     9. Further, it is submitted that the Court below has failed

to appreciate the evidence of DW.1, who is the mother of the

accused No.1.       The manner in which the raid was conducted

and the arrest was made etc. makes the case of the

prosecution as highly doubtful. The prosecution has failed to

record the statement of independent witnesses at the spot of

arrest and seizure.


     10.      The proprietor or the workers of the canteen have

also not been examined before the trial Court. Except the police
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officials and the panchas, no other independent witnesses have

been examined in support of the case of the prosecution.

Further, it is submitted that though the alleged offences are

cognizable in nature, the I.O. has not registered the case, soon

after the receipt of the information as to commission of

offences. Further, he has pointed out that in the FIR which is

marked as Ex.P5, it is shown by the police that the information

is received at police station on 02.09.2006 at 16:10 hours and

in General Diary Reference Entry No.(1), time is shown as

04:10 p.m. But, Ex.P1, the Mahazar dated 02.09.2006, reveals

that the Mahazar is conducted on the same day between 11.45

a.m. to 02.15 p.m. and the FIR is submitted to the Court on

02.09.2006, at 09.15 p.m. The complaint Ex.P2, reveals that

the Police Inspector in District Crime Investigation Unit, Kodagu

District, Madikeri, has lodged a complaint on 02.09.2006 at

16:10 hours and on the basis of this complaint case was

registered in Crime No.100/2006 for the offence under Section

489-B, 489-C and Section 120-B read with 34 IPC.


     11.    Before registration of the FIR, the investigation

conducted by the I.O. is illegal and not sustainable under law.

Further he would submit that, Ex.P2 reveals that, in all, 6
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                                           C/W CRL.A No. 418 of 2013

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accused were involved in the commission of offence, but the

I.O. has submitted charge sheet against only 2 accused. In the

charge sheet, the I.O. has not explained anything that whether

he has dropped the case against other accused or as to

whether the I.O. has investigated against accused Nos.3 to 6.

The same is left blank. The conduct of the I.O. will create doubt

about     this   investigation.   The      Investigating   Officer   has

mechanically, without proper investigation, has submitted the

charge sheet against the accused, which is not sustainable

under law.


        12. Accused No.1 has given explanation in his statement

recorded under Section 313 of Cr.P.C. stating that he is the

timber merchant and since there was an enmity between the

Police Inspector and himself, the Police Inspector has filed a

false charge against him. The same has not been considered by

the trial Court. DW.1 has clearly stated before the Court that

the I.O took the accused from his house prior to registration of

the case against him. On all these grounds he sought to allow

the appeal.
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                                        C/W CRL.A No. 418 of 2013

HC-KAR




      13.    To substantiate his argument, he has relied on the

following decisions:-


      i)     Umashankar V/s. State of Chhattisgarh
             reported in (2001) 9 supreme court
             cases 642;

      ii)    State by Lashkar Police Station, Mysore
             V/s. M.V. Srinivasa, reported in 2003
             SCC OnLine Kar;

      iii)   State of Karnataka by town police
             station, Harihara V/s. Pinki and another
             in Criminal Appeal No.1252/2016
             passed by Hon'ble High Court of
             Karnataka.


     14. Sri. Nishit Kumar Shetty, the learned counsel for the

appellant in Crl.A.No.418/2013, would submit that the I.O. has

not recovered any currency notes from the possession of the

present appellants and the accused No.2 has no knowledge as

to the possession of currency notes as alleged by the

prosecution and even in his statement under Section 313 of

Cr.P.C., he has clearly stated that the charge sheet filed against

the accused is with malafide intention and sought to allow the

appeal. On all these grounds learned counsel for appellants

sought to allow this appeal.
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                                       C/W CRL.A No. 418 of 2013

HC-KAR




     15.   Learned High Court Government Pleader Sri. B.

Lakshman, would submit that the Trial Court has properly

appreciated the material on record and that there are no

grounds to interfere with the impugned judgment of conviction

and order on sentence, and sought for dismissal of appeals.


     16.   Having heard the arguments on both sides and on

perusal of materials, the following points would arise for my

consideration.


     i.    Whether the Trial Court is justified in convicting
           the accused for the offence under Section 489B
           and 489C of IPC and Section 120B of IPC?
     ii.   What order?

     17.   My answers to the above points are as under:


     Point No.1: Negative,

     Point No.2: As per final order.

Regarding Point No.1:

     18.   I have examined the materials placed before this

Court. It is the case of the prosecution that on 02.09.2006 at

Byachanahalli within the limits of Kushalnagara Police Station in
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                                            C/W CRL.A No. 418 of 2013

HC-KAR




furtherance of the common object, the accused entered into

criminal conspiracy and agreed to do illegal acts namely

circulation of counterfeit currency notes and on the same day

accused Nos.1 and 2 in furtherance of their common object

forged and possessed the counterfeit currency notes having

knowledge that the said currency notes were counterfeit notes.

With an intention of being in possession of forged or counterfeit

currency notes and also believing that the same are forged and

counterfeit currency notes, have intended to use and circulate

them as genuine currency notes, thus the accused have

committed the alleged offence. To prove the guilt of the

accused, the prosecution has examined 10 witnesses and 5

documents were marked as Ex.Ps1 to P5 and 24 material

objects marked as M.O.Nos.1 to 24.


      19.    This case arises out of the complaint Ex.P2 filed by

Police Inspector, who is examined as PW4-B.R. Lingappa in

which it is stated as under:


      "ªÀiÁ£ÀågÉÃ,
               «µÀAiÀÄ: SÉÆÃmÁ £ÉÆÃlÄUÀ¼À ZÀ¯ÁªÀuÉAiÀÄ DgÉÆÃ¦UÀ¼À «gÀÄzÀÞ
                        ªÉÆRzÀݪÉÄ zÁR®Ä ªÀiÁr vÀ¤SÉ PÉÊUÉÆ¼ÀÄîªÀ §UÉÎ.
               G¯ÉèÃR: ªÉƺÀdgÀÄ ¢: 02/09/2006.
                                      - 14 -
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                                                  CRL.A No. 618 of 2013
                                              C/W CRL.A No. 418 of 2013

HC-KAR



                                       DgÉÆÃ¦UÀ¼ÀÄ
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                                          C/W CRL.A No. 418 of 2013

HC-KAR



    MAzÀjAzÀ £Á®ÌgÀªÀgÉV£À ¸ÀévÀÄÛUÀ¼À£ÀÄß ºÁUÀÆ ¢£ÁAPÀ: 02/09/2006gÀ
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      20.   On the basis of this complaint, case was registered

in Crime No.100/2006 for the offence under Section 489B,

489C and 120B Read with Section 34 of IPC and the FIR was

submitted to the Court on 02.09.2006 at 09.15 pm., as per

Ex.P5. In Ex.P2, it is clearly stated that this complaint was

received on 02.09.2006 at 16.10 hours, same is also mentioned

in FIR Ex.P5 in column No.3B that the information received at

police station dated 02.09.2006 time 16.10 hours. In the

general diary in entry No.1, time is shown as 04.10 pm. The

Ex.P1 is the Seizure mahazar dated 02.09.2006 reveals that

the police have conducted this mahazar between 11.45 am. to

2.15 pm. It is the case of the prosecution that the police have

seized the counterfeit currency notes under mahazar Ex.P1.


      21.   PW4-B.R. Lingappa has deposed in his evidence

that on 02.09.2006 when he was in the police station, he had

received the information as to trafficking of counterfeit notes in

Kushalnagar from some informants. He left the police station

along with his staff in the departmental vehicle at 9.30 am. and
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reached   Kushalnagar    at   11.00      a.m.   Though    PW4-Police

Inspector has received the information on 02.09.2006 at 09.30

pm., he has not mentioned the same in the station diary and

though the alleged offence are cognizable in nature, however

PW4 has not registered the case prior to seizure of these notes,

though he had received information on 02.09.2006 at 9.30 am.

In view of para No.1194 of Chapter XXVII of Karnataka Police

Manual,   information   coming    under     any   of    the   following

headings received at a police station, shall be registered in the

First Information Report book (Form No.126), which is the book

prescribed under Section 154, Criminal Procedure Code, 1973:


     (1) cognizable cases including those referred to the
          Police by Magistrates for investigation or inquiry
          under   Sections    156(3)      and     202    Criminal
          Procedure Code;
     (2) fires, missing of cattle and all other occurrences
          where there is reason to suspect the commission
          of a cognizable offence;
     (3) non-cognizable cases endorsed to the Police by
          Magistrates for investigation or inquiry under
          Sections 155(2) and 202 Criminal Procedure
          Code;
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     (4) cases under Sections 41, 102, 107 to 110 of the
           Code   of    Criminal   Procedure,      only   one    First
           Information Report being issued if more than one
           person is involved in a case;
     (5) reports made to Magistrates with a view to action
           being taken under Sections 144 and 145 of the
           Code of Criminal Procedure.
     (6) cases under Section 182 or 211 IPC when it is
           proposed to prosecute the complainant for false
           complaint,    although       not    investigated     under
           Section 155(2) of the Code of Criminal Procedure.
     Note.- Cases received on transfer from other Police
        Stations should be re-registered at the receiving
        Station.

     22.     In the case on hand, on the basis of the information

received by PW4, he has not registered the case in first

information report book and submitted the FIR to the Court as

required under Section 154 of Code of Criminal Procedure,

1973. The entry made in Ex.P.5-FIR, is contrary to the evidence

of PW4 for the reason that when PW4 has received the credible

information as to the possession of counterfeit notes by some

person, he ought to have entered the same in the general diary

reference entry at 9.30 am. Instead of that, he has shown in

the FIR that the general dairy reference entry number is

02.09.2006 at 4.10 pm. Before registration of this case, the IO
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has seized the properties under mahazar-Ex.P1 which is not

permissible under the law and the same is also against the

provisions of Section 154 of Code of Criminal Procedure and

paragraph No.1194 of the Karnataka Police Manual.


     23.   Ex.P2 - Complaint reveals that PW.4 - Complainant

has lodged a complaint against accused No.1 - B.M.Mohammed

Haneef, accused No.2 - D.A.Abdul Latheef, accused No.3 -

Ashoka @ Suresh, accused No.4 - Aakash, accused No.5 -

Deepak and accused No.6 - B.M.Abdual Kalam. Accused Nos.3

to 5 are residents of South Canara and accused Nos.1, 2 and 6

are residents of Bellare Village, Kushalnagara. Though PW.4

has lodged a complaint against six accused, the Investigating

Officer has submitted the charge sheet only against accused

Nos.1 and 2. In the charge sheet, the IO has not shown any

reason or information about accused Nos.3 to 6.       In view of

Column Nos.6 and 7 of the charge sheet, it is the duty of the IO

to show in the charge sheet that as to steps taken against

accused. If accused Nos.3 to 6 have not committed any

offence, he has to mention the same in the charge sheet that

he has to drop the case against the other accused for want of
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sufficient evidence or he has to file a 'B' report or 'C' report.

The IO has not whispered anything as to not taking steps

against accused Nos.3 to 6 though PW.4 - Police Inspector has

shown the name of accused No.3 to 6 with address. Accused

No.1 has given explanation in his statement under Section 313

of Cr.P.C that he is a timber merchant.            Since there is an

enmity between the police inspector and himself, the police

inspector has filed the charge sheet against him.


     24.     The IO has not properly investigated the case in

accordance with the Cr.P.C., and has mechanically submitted

the charge sheet against accused, which is not sustainable

under law.    The Trial Court has not properly appreciated the

evidence     on   record   in   proper     perspective.   Accordingly,

prosecution has failed to prove the guilt of the accused beyond

all reasonable doubts. Hence, the Trial Court is not justified in

convicting the accused for the alleged offence. Hence, I answer

point No.1 in the negative.


Regarding Point No.2 :


     25. For the aforesaid reasons and discussion, I proceed

to pass the following:
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                             ORDER

i) The appeals are allowed.

ii) The judgment of conviction and order on sentence passed by the District and Sessions Judge, Kodagu, Madikeri in SC.No.52/2007 dated 05.04.2013 is set aside.

iii) The appellants are acquitted of the offence under Section 489-B, 489-C and 120-B of IPC.

iv) The fine amount, if any, deposited by the appellants shall be returned to them in accordance with law.

Registry is directed to send a copy of this judgment along with the Trial Court records to the concerned Court.

SD/-

(G BASAVARAJA) JUDGE LDC,BN,PHM List No.: 1 Sl No.: 38