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Appeal filed under Section 374(2) of the Code of Criminal Procedure (for short, "Cr.P.C.").

2. 1st accused in S.C.No.450 of 2001 on the file of Additional District and Sessions Court, Fast Track-I (Adhoc), Manjeri, who is convicted for offences punishable under Section 489B, 489C and 489D of the Indian Penal Code (for short, "IPC") has come up in appeal challenging the conviction and sentence.

3. Prosecution case, in short, is as follows:

PW1 on 22.09.1995 received an information that the appellant was dealing with counterfeit currency. The information was received at about 7 p.m. Since he did not get sufficient time to get an order from the concerned Magistrate for conducting a search in the house of the appellant, he prepared Ext.P3 search memo. Thereafter, he proceeded to the house of the appellant with police party. Ext.P1 search list shows that 95 fake Saudi Arabian riyals, forged currency of `50/-, 90 in number and certain pieces of paper having the size of a currency note of `50/- were recovered. Later the investigation was handed over to CBCID. After  closing the investigation, a charge was filed. Finding that this is a case exclusively triable by a Court of Sessions, learned Magistrate committed the case and it was made over to the trial court.

iii. The accused was in possession of currency notes iv. The accused intended to use the same as genuine v. Accused knew or had reason to believe that the note to be forged.

14. In order to attract an offence under Section 489D IPC, it must be established that the thing recovered from the possession of the accused was a machinery, instrument or material necessary for forging or counterfeiting a currency note. Accused made or performed any part of the process of making, buying, selling or disposing of any machinery or instrument or material. The accused knew or had reason to believe that the above mentioned things were intended to be used for forging or counterfeiting any currency note.

In the result, the appeal is allowed. Conviction of the appellant under Sections 489B, 489C and 489D IPC is hereby quashed. He shall be set free forthwith, if not wanted in any other case. Bail bond shall stand cancelled. If the appellant had paid any amount as condition for suspending the sentence, it shall be released to to him.

All pending interlocutory applications will stand dismissed.

A. HARIPRASAD, JUDGE.