Holding

The Supreme Court upheld the conviction, holding that the approvers' testimony, duly corroborated by material and circumstantial evidence, satisfied the requirements of Sections 133 and 114 of the Evidence Act, and that the presumption under Explanation 2 of Section 28 IPC and the elements of conspiracy under Section 120B were established.

Summary

The appellants K. Hashim and another were convicted for counterfeiting US dollar notes, possession of counterfeit currency, and possession of materials used for counterfeiting under Sections 489A, 489C, 489D and for criminal conspiracy under Section 120B of the IPC. The conviction was based largely on the confessional statements of two co‑accused who turned approvers, supported by material seized during raids and expert reports. The appellants argued that the approvers' testimony required corroboration in material particulars, that the seized notes were not produced in court, and that the expert evidence was inadmissible. The Supreme Court held that the approvers’ statements, read with corroborative circumstantial evidence and expert reports, satisfied the prudential requirement of Section 114 of the Evidence Act, and that Explanation 2 of Section 28 IPC created a rebuttable presumption of intent and knowledge. It further found that the elements of criminal conspiracy under Section 120B were established and that the provisions of Sections 489A, 489C and 489D applied to foreign currency. Consequently, the convictions and sentences were upheld.

Issues considered

The admissibility of uncorroborated testimony of approvers under Sections 133 and 114 of the Indian Evidence Act.
Whether material corroboration in material particulars was required for the approvers' statements.
The relevance and admissibility of expert reports and the seized counterfeit notes not produced in court.
The applicability of Explanation 2 of Section 28 IPC creating a presumption of intent/knowledge in counterfeiting.
Whether the elements of criminal conspiracy under Section 120B IPC were satisfied.
The applicability of Sections 489A, 489C and 489D IPC to the counterfeiting of foreign currency notes.

Legislation cited

Code of Criminal Procedure, 1973s. 164, s. 293, s. 306
Indian Evidence Act, 1872s. 114, s. 133
Indian Penal Code, 1860s. 120B, s. 28, s. 489A, s. 489C, s. 489D

Subjects

counterfeitingapprover testimonycorroborationcriminal conspiracyIndian Evidence ActSection 133Section 114Section 120B IPCSection 28 IPCexpert evidenceforeign currency

Judgment

K. HASHIM A
v.
STATE OF TAMIL NADU

NOVEMBER 17, 2004

[ARIJIT PASAYAT AND C.K. THAKKER, JJ.]
B
;

Indian Evidence Act, 1872 :

Section 133-Evidence of an accomplice-Conviction based upon-
Corroboration requirement of-Explained, Section 114 of the Evidence Act. C
Indian Penal Code, 1860:

Section 120 B-Conspiracy-Essence of-Scope and extent-Explained.

Section 489A, 489C, 489D-Offence-Accused persons involved in D
counterfeiting of VS currency notes-Bundles of counterfeit currency and
printing ink, blocks etc. recovered on their disclosures-Held, expression
currency notes covers currency notes of any country-Taking any part in
the process, possession and knowledge that the currency notes are counterfeit,
seizure of materials and tools-Punishable, Section 28 of the Indian Penal E
Code.

Appellants were accused of counterfeiting of US currency of 20
dollars denomination. Several bundles of counterfeit US dollars were
seized on their disclosures apart from printing ink and printing blocks.
On the basis of the confessional statements of two co-accused turned F
approvers the trial court recorded conviction. Appeals against the same
to the High Court did not yield any fruitful result. Hence this appeal.

The appellant contended that acting on the approvers' evidences,
corroboration on material particulars was necessary and there was no
recovery in fact or in law. It was also contended that there was no
G
independent witness and whatever the approvers said related to a period
prior to the alleged commission of offence and the IO evidence relates
to the subsequent period and as such there was ample chance of tutoring
them. The evidence relating to the recovery was highly improbable. In
the absence of any claim that the alleged articles were genuine, it was H
l
2 SUPREME COURT REPORTS [2004] SUPP. 6 S.C.R.

A incumbent on the prosecution to prove that they were counterfeits. The
reliance placed on expert's evidence is also without legal sanction because
the expert was not examined to show that he had any expertise to say
anything about the articles being counterfeited. Only one person was
examined to prove the reports and he was not the author of the report
and, therefore, his evidence was really of no assistance to the prosecution.
B The effect of Explanation 2 of Section 28 IPC has not been considered
in the proper perspective. The ink which was allegedly used for the
purpose of counterfeiting was not seized from the appellants.

The respondent contended that Explanation 2 of Section 28 is very
C relevant. When the possession is of an article which is likely to be used
in any part of the process of counterfeiting is proved the case is covered
by Section 489A. As it was difficult for an independent expert to say
whether the foreign currency was counterfeited, therefore, some of the
seized articles were sent to a foreign expert and it would have been
practically very costly for the expert to come and depose. The effect of
D Section 293 of the Code has been kept in view by the trial Court while
accepting the report as evidence. The charge against the accused persons
was one of conspiracy and, therefore, in the background of what has
been stated in Section 10 of the Indian Evidence Act, 1872 (in short the
'Evidence Act') the evidence of PW-1 is very relevant.
E
Dismissing the appeal, the Court

HELD : 1.1. Some of the seized notes that were not produced in
Court, prosecution has explained this by bringing on record the fact that
some of the seized notes were sent for the expert's view. Of the two
F reports, one of the persons who had given the report was not available.
But the authenticity of the report has been established by the other
expert who was acquainted with the signature. [11-B, CJ

2.1. The elements of a criminal conspiracy have been stated to be
G (a) an object to be accomplished, (b) a plan or scheme embodying means (

to accomplish the object, (c) an agreement or understanding between
two or more of the accused persons whereby, they become definitely
committed to cooperate for the accomplishments of the object by the
means embodied in the agreement, or by any effectual means, and (d) in
the Jurisdiction where the statute required an overt act. The essence of a
H criminal conspiracy is the unlawful combination and ordinarily the
K. HASHIMv. STATE 3

offence is complete when the combination is framed. From this, it A
-., ""' necessarily follows that unless the statute so requires, no overt act need
be done in furtherance of the conspiracy, and that the object of the
combination need not be accomplished, in order to constitute an indictable
offence. Encouragement and support which co-conspirators give to one
another rendering enterprises possible which, if left to individual effort,
would have been impossible, furnish the ground for visiting conspirators B
and abettors with condign punishment. The conspiracy is held to be
continued and renewed as to all its members wherever and whenever
any member of the conspiracy acts in furtherance of the common design.
(11-G-H; 12-A, BJ

American Jurisprudence, Vol. II, Sec 23, referred to.
c
2.2. For an offence punishable under Section 120-B the prosecution
need not necessarily prove that the perpetrators expressly agree to do
or cause to be done illegal act; the agreement may be proved by necessary
implication. Offence of criminal conspiracy consists not merely in the
D
intention of two or more, but in the agreement of two or more to do an
unlawful act by unlawful means. So long as such a design rests in
intention only, it is not indictable. When two agree to carry it into effect,
the very plot is an act in itself, and an act of each of the parties, promise
against promise, actus contra capable of being enforced, if lawful,
punishable if for a criminal object or for use of criminal means. Therefore E
the evidences of PWs 1 and 8 though relates to the earlier period is
clearly covered because of the conspiracy angle and the applicability of
Section 10 of the Evidence Act. (12-B-F)

Ram Narayan. Pop/i's v. CBI, (2003) 3 SCC 641, relied upon.
F
3.1. Section 133 of the Evidence Act expressly provides that an
accomplice is a competent witness and the conviction is not illegal
merely because it proceeds on an uncorroborated testimony of an
accomplice. In other words, this section renders admissible such
uncorroborated testimony. But this Section has to be read along with
) G
-
Section 114, illustration (b). The Statute permits the conviction of an
accused on the basis of uncorroborated testimony of an accomplice but
the rule of prudence embodied in illustration (b) to Section 114 of the
Evidence Act strikes a note of warning cautioning the Court that an
accomplice does not generally deserve to be believed unless corroborated
.J in material particulars. In other words, the rule is that the necessity of
H
4 SUPREME COURT REPORTS [2004) SUPP. 6 S.C.R.

A corroboration is a matter of prudence except when it is safe to dispense ·'<..
with such corroboration must be clearly present in the mind of the .... r
Judge. [13-B-E)

Bhubon Sahu v. The King, AIR (1949) PC 257 and Suresh Chandra
Bahri v. State of Bihar, AIR (1994) SC 2420, referred to.
B
Rex v. Baskerville, (1916) 2 KB 658 and A Treatise on the Law of ~

Evidence, (1931) Vol. 1 by Taylor, referred to.

G.S. Bakshi v. State (Delhi Administration), AIR (1979) SC 569,
c referred to.

3.2. The evidence of the Approver must, however, be shown to be
ofa reliable witness. The corroboration should be in material particulars
of the Approver's statement, as he is considered as a self-confessed
traitor. (14-C]
D
Jnanendra Nath Ghose v. State of West Bengal, (1960) l SCR 126:
AIR (1959) SC 1199 : (1959) Cri LJ 1492 and Bhiva Doulu Patil v. State
of Maharashtra, AIR (1963) SC 599 : (1963) 1 Cri. LJ 489, referred to.

3.3. The word 'corroboration' means not mere evidence tending to
E confirm other evidence. (15-B]

DPP v. Hester, (1972) 3 All ER 1056 and D.P.P. v. Kilbourne, (1973) L
l All ER 440, referred to. I
Rameshwar v. State of Rajasthan, AIR (1952) SC 54, relied upon.
F
3.4. lt is not necessary that there should be independent confirmation
of every material circumstance in the sense that the independent evidence
in the case, apart from the testimony of the complainant or the accomplice,
should in itself be sufficient to sustain conviction. AU that is required is
G that there must be some additiona) evidence rendering it probable that (
the story of the accomplice (or complainant) is true and that it is reasonably +-
\
safe to act upon it. Secondly, the independent evidence must not only
make it safe to belie\,'e .that the crime was committed but must in some
way reasonably connect or tend to connect the accused with it by
confirming in some material particular the testimony of the accomplice 1.- -~
H
K. HASHIM v. STATE 5
..... A
or complainant that the accused committed the crime. This does not mean
that the corroboration as to identify must extend to all the circumstances
necessary to identify the accused with the offence. Again, all that is
necessary is that there would be independent evidence which will make it
reasonably safe to believe the witness's story that the accused was the
one, or among those, who committed the offence. Thirdly, the
corroboration must come from independent sources and thus ordinarily B
the testimony of one accomplice would not be sufficient to corroborate
that of another. But of course the circumstances may be such as to make
it safe to dispense with the necessity of corroboration and in those special
circumstances a conviction so based would not be illegal. I say this because
it was contended that the mother in this case was not an independent
source. Fourthly, the corroboration need not be direct evidence that the
c
accused committed the crime. It is sufficient if it is merely circumstantial
evidence of his connection with the crime. (16-G; 17-B-GJ

MO. Shamsudhin v. State of Kera/a, (1995) 3 SCC 351, referred to.
D
3.5. Evidence of PWs 1 and 2 does not suffer from any infirmity
to warrant rejection for their evidence is not really uncorroborated as
is submitted by learned counsel for the appellants. The evidence of PWs
8 and 19 clearly provides the materials. As noted above, even
circumstantial evidence can provide the corroboration. In the instant
case, the evidence of PWs 1 and 2, therefore, clearly meets the E
~
. requirements of Section l 14(b) in the background t>f-Section 133 of the
Evidence Act. [17-H; 18-A)
-<

4.1. If one thing is made to resemble another thing and the intention
is that by such resemblance deception would be practised or even if
there is no intention but it is known to be likely that the nsemblance F
is such that deception will thereby be practised there is counterfeiting.
In order to apply Section 28 what the Court has to see is whether one
thing is made to resemble another thing and if that is so and if the
resemblance is such that a person might be deceived by it, there will be
) a presumption of the necessary intention or knowledge to make the thing
counterfeit, unless the contrary is proved. "Counterfeit" in Section 28 G
does not connote an exact reproduction of the original counterfeited.
The Explanation 2 of Section 28 is of great significance. It lays down
a rebuttable presumption where resemblance is such that a person
might be deceived thereby. In such a case the intention or the knowledge
is presumed unless contrary is proved. [20-F-H; 21-A) H
6 SUPREME COURT REPORTS (2004] SUPP. 6 S.C.R.

A State of Uttar Pradesh v. I. Hafiz Mohd. Ismail, AIR (1960) SC 669
and State of Kera/a v. Mathai Verghese and Ors., AIR (1987) SC 33,
referred to.

CRIMINAL APPELLATE JURISDICTION Criminal Appeal No.
185 of 2004.
B
From the Judgment and Order dated 10.4.2003 of the Madras High
Court in Crl.A. No. 436 of 1995.

WITH
c
Crl.A. No. 187 of 2004.

B. Mohan, Vipin Nair, P.B. Suresh and K. Rajeev for the Appellant
in Crl.A. No. 185/2004.

D T. Harish Kumar for the Appellant in Crl.A. No. 187/2004.

Sidharth Dave, Abhay Kumar, R. Gopal Krishnan and Subramonium
Prasad for the Respondent.

E The Judgment of the Court was delivered by

ARIJIT PASAYA T, J. : Strange though it may appear increasingly
our country is becoming notorious for spiraling number of cases involving
counterfeiting.of currency notes, both of our country and foreign countries
and stamp papers. It is becoming increasingly difficult for a layman to be
F sure whether what he is receiving as a currency note is genuine or a
_ counterfeited one. Similar is the position regarding stamp papers.

In these a~peals the basic allegations against ac:cused appellants were
counterfeiting of US currency of20 dollars denominations. Originally, there
G were 7 accused persons. The accused persons are described as A-I, A-2 and (

so on in terms of their position during trial. One Rajan Chettiar died during
trial. Two of the accused persons turned approvers. Out of the rest four, 2
are the appellants in these appeals and they are A-2 and A-3. All the four
. accused filed appeals before the High-Court. They were each sentenced to
RI for 7 years with a fine of Rs.5,000 with default stipulation of two years ,__
H RI. They were separately convicted under Section 489C. Both the sentences
K. HASHIM v. STATE [PASA YAT, J.] 7
/>
were directed to run concurrently. But the custodial sentence imposed was A
different. For A-1, it was 5 years; for A-2 it was 7 years, for A-3 it was 5
years and for A-4 it was 7 years. The High Court by the impugned judgment
upheld their .conviction for offences punishable under Section 120B read
with Section 489A, 489C and 489D of the Indian Penal Code, 1860 (in short
the 'IPC').
B
The prosecution accusations as unfolded during trial are as follows:

On receiving secret information, the Investigating Officer (PW-19)
conducted a raid at the house of Rajan Chettiar at No. 6, Palaiamman Koil
Street, Villivakkam, Chennai between 1.30 PM and 3.30 PM on 3.8.1982. c
During his search, he recovered eight bundles of counterfeit US dollars of
20 denomination (MOs 4 to 11) under mahazar (Ext. Pl) in the presence
of one Thiruvengadam (PW 3).

Immediately, ·a complaint was lodged which was registered as fIR
(Ex.P-28) in Crime No. 32of1982 on the file oflnspector of Police, CBC ID, D
Madras-4. Based on the information famished by Rajan Chettiar, PW-19
proceeded to Golden Cafe Lodge at Poonamallee High Court, Chennai and
reached the Lodge at 4.30 P.M. on 3.8.1982, conducted a search at Room
No. 72 in the presence of one P.S. Kumar (PW.4), the Manager of Golden
Cafe Lodge and arrested A-1 and A-4 and recovered three bundles of E
counterfeit US dollars of20 denomination (MO 14) under mahazar (Ex.P2)
in the presence of PW-4.

On the basis of the confessional statement obtained from the A-1
(Ex.P-29), PW-19 proceeded to Canara Timber Corporation, No. 176,
Sydenhams Road, Periamet, Chennai, a shop qwned by Ravindran F
(PW 1) and recovered five bundles of counterfeit US dollars of 20
denomination (MO 1 series) from PWl, under Mahazar (Ex P30) in the
presence of Thirumal and Jain.

> From Canara Timber Corporation, PW-19 proceeded to Iyyappa Lodge
at Hunters Road, Vepery, Chennai, and reached there at 6.30 P.M. where
G
he recovered six bundles of counterfeit US dollars of20 denomination from
the A-2 under Ex P-31 and arrested him.

Then PW-10 proceeded to Vasantham Press at No. 96, Portuguese
Church Street, Chennai, owned by A-3 and since it was late night on H
8 SUPREME COURT REPORTS (2004] SUPP. 6 S.C.R.

A 3 .8.1982, he could not conduct any search in the said Press and therefore,
he arrested A-3 and sraled the premises of Vasantham Press.

On 4.8.19&2, based on the confession of the A-1, PW-19 proceeded
to RJVA Press at~o. 27, Balakrishna Mudali Street, Vyasarapadi, Chennai,
B owned by one Anjana Devi, conducted a se.arC:h and recovered printing inks
in green, yellow, light green and light yellow colours and printing blocks
(MOs 35 to 42) under mahazar (Ext. P33) in the presence of Anjana Devi,
whose signature in the Mahazar (Ex.P33) iwas identified by PW-6, the
husband of Anjana Devi.

C Rajan Chettair was arrested at 3.30 P.M. on 3.8.1992 at No.6, Palaimman
Koil Street, Villivakkam, Chennai, the A-1 and A-4 were arrested at 4.30
P.M. at Room No. 72, Golden Cafe Lodge, Poonarnallee High Road, Chennai,
Ravindran (PWl) was arrested at Canara Timber Corporation, No. 176,
Sydenhams Road, Periamet, Chennair, owned by him at 6.00 P.M. on
D 3.8.1982, A-2 was arrested at Room No. 13, Jyyappa Lodge, Hunters Road,
Veperi, Chennai, owned by PW 7 at 6.30 P.M. on 3.8.1982 and the third
accused was arrested at Vasantham Press, No. 96, Portuguese Church Street,
Chennai at late night on 3.8.1982.

Rajan Chettiar, A-1 and A-4 PW.I, A-2, PW2 and A-3 were produced
E before the Magistrate on 4.8.1982 and remanded to judicial custody 'till
10.8.1982.
~

On 11.8.1982, PW-19 examined Chinnaiah (PW8) an artist and collected
further materials, based on which PW 19 conducted another search at
F Vasantham Press at No. 96, Portuguese Church Street, Chennai on 12.8.1982
at about 1.20 PM and recovered printing inks (MOs 23 to 24) under mahazar
(Ex.P7) in the presence of PW 12.

During investigation, PW 19 conducted a search at about 4.00 PM on
17.8.1982 in the house of A-2 at No. 23A, Bhawani Nagar, Red Hills,
G Chennai and recovered printing blocks etc. (MOs 43 to 54) under mahazar
(Ext. P 34) in the presence of one Reddy and K.K. Arumugam.

At about 6.30 P.M. on the same day (17.8.1982), PW-19 conducted
another search in the house of Rajan Chettiar at Villivakkam, Chennai and ..
H recovered spectacle pouch and certain incriminating receipts in the pouch
K. HASHIM v. STATE [PASAYAT, J.] 9

(Mos 55 and 56 respectively) under mahazar (Ex.P35) in the presence of A
· M.A. Kadar and Reddy.

On 20.8.1982 the confessional statements of PWs 1 and 2 (Exs. P-20
and P-23 respectively) under Section 164 of the Code of Criminal Procedure,
1913 (in short the 'Code') were recorded by PW-17 based on which, PWs B
I and 2 were pardoned, by an order dated 5.10.1983 passed under Section
306 of the Code by PW 18.

Accordingly, FIR in Crime No. 32 of 1982 was filed against seven
accused initially, namely the accused/appellants herein, Rajan Chettiar,
Ravindran (PW-1) and Rajendra Menon (PW-2) but since Rajan Chettiar C
died even before the framing of charges, the ,complaint against him stood
abated and Ravindran (PW-I) and Rajedara Menon (PW-2) were treated as
approvers, as per Exs. P27 and P26 respectively.

Based on the evidence recorded and collected by the Investigating D
Officer, (PW-I9rtharge sheet was filed.

Accused persons faced trial. During trial prosecution examined 19
witnesses including two approvers (PWs 1 and 2) and investigating officer
(PW-19). Thirty five documents were marked as exhibits and 56 material
objects were produced. The accused persons pleaded innocence and false E
implication. The trial Court after considering the evidence on record found
the accusations to have been established and accordingly recorded conviction
and imposed sentences as noted above.

Four appeals were filed before the High Court which did not yield any F
fruitful result to the appellants and the appeals were dismissed by the
common judgment impugned in the present appeals.

The learned counsel for the appellants questioned correctness of the
judgment of the High Court on several grounds. Primarily the challenge was
to the reliance placed on the evidence of PWs l and 2, the approvers and G
PW-19, the inve:;tigating officer. It was submitted that for acting on the
approvers' evidence corroboration on material particulars was necessary. It
was further submitted that there was no recovery in fact or in law. In any
event, the evidence relating to alleged recovery from A-2 is scanty and
should not have been acted upon. The evidence of the approvers (PWs I H
10 SUPREME COURT REPORTS [2004] SUPP. 6 S.C.R.

A and 2) show that they do not corroborate each other. In order to bring in
application of Section l 20B, it was submitted that, there should have been
evidence of the conspiracy. There is no independent witness. Whatever PWs
l and 2 said related to a period prior to the alleged commission of offence
and PW-19' s evidence relates to the subsequent period. There was ample
B chance of tutoring PWs l and 2. No reason has been assigned as to why
Anjana Devi from whose business premises allegedly some recoveries were
made was not examined or even made an accused. It is also not indicated
as to why PW-8 was not implicated as an accused. The evidence rel~ting
to recovery is also highly improbable. Even though, there was no claim
C made that the alleged articles were genuine, it was incumbent on the
prosecution to prove that they were counterfeits. The reliance placed on
expert's evidence (PW-16) is also without legal sanction because the expert
was not examined to show that he had any expertise to say anything about
the articles being counterfeited. Only one person was examined to prove the
reports and he was not the author of the report and, therefore, his evidence
D was really of no assistance to the prosecution. The effect of Explanation 2
of Section 28 IPC has not been considered in the proper perspective. Even
if it is accepted that an expert's evidence has to be considered the expertise
of the expert witness has been clearly provided and in the case at hand,
prosecution has failed to establish the expertise of the witnesses and the
E contents of the report. Though reference has to be made to the role played
-by one Gaja, he has not been examined. PW-14 has given the chemical
analysts report. The ink which was allegedly used for the purpose of
counterfeiting was not seized from the appellants.

In response, learned counsel for the State submitted that Explanation
F 2 of Section 28 is very relevant. When the possession is of an article"which
is likely to be used in any part of the proc.!ss of counterfeiting is proved
the case is covered by Section 489A. As it was difficult for an independent
expert to say whether the foreign currency was counterfeited, therefore,
some of the seized articles were sent to a foreign expert and it would have
G been practically very costly for the expert to come and depose. The effect (.
of Section 293 of the Code has been kept in view by the trial Court while
accepting the report as evidence. The charge against the accused persons
was one of conspiracy and, therefore, in the background of what has been
stated in Section I 0 of the Indian Evidence Act, 1872 (in short the 'Evidence
. ;.
l. Act') the evidence of PW-I is very relevant.
K. HASHIM v. STATE [PASAYAT, J.] 11

Both the approvers have spoken about the presence of A-2 during A
every transaction. He is not an innocent by-stander as was tried to be
contended. A stand was taken that there was no period indicated. Though
in the examination-in-chief nothing was stated about the period but in the
cross examination by A-2 this matter was brought on record. The confession
recorded by PW-19 amply proves the accusations. Though much was made B
of the fact that some of the seized notes were not produced in Court,
' prosecution has explained this by bringing on record the fact that some of
the seized notes were sent for the expert's view. There were two reports,
one of the persons who had given the report was not available. But the
authenticity of the report has been established by the other expert who was
acquainted with the signature. C
It would be appropriate to deal with the question of conspiracy. Section
120-B IPC is the provision which provides for punishment for criminal
conspiracy. Definition of "criminal conspiracy" given in Section 120-A
reads as follows :
D
"120-A Wheq two or more persons agree to do, or cause to
J
be done, -

(l) an illegal act, or
E
(2) an act which is not illegal means, such an agreement is
designated a criminal conspiracy.

Provided that no agreement except an agreement to commit
an offence shall amount to a criminal conspiracy unless some act
besides the agreement is done by one or more parties to such F
agreement in pursuance thereof."

The elements of a criminal conspiracy have been stated to be (a) an object
to be accomplished, (b) a plan or scheme embodying means to accomplish
the object, ( c) an agreement or understanding between two or more of the
.accused persons whereby, they become definitely committed to cooperate G
for the accomplishment of the object by the means embodied in the agreement,
or by any effectual means, and (d) in the jurisdiction where the statute
required an overt act. The essence of a criminal conspiracy is the unlawful
combination and ordinarily the offence is complete when the combination
' is framed. From this, it necessarily follows that unless the statute so requires, H
12 SUPREME COURT REPORTS [2004] SUPP. 6 S.C.R.
~
A no overt act need be done in furtherance of the conspiracy, and that the
object of the combination need not be accomplished, in order to constitute
an indictable offence. Encouragement and support which co-conspirators
give to one another rendering enterprises possible which, if left to individual
effort, would have been impossible, furnish the ground for visiting
B conspirators and abettors with. condign punishment. The conspiracy is held
to be continued and renewed as to all its members wherever and whenever
any member of the conspiracy acts in furtherance of the common design. '
(See: American Jurisprudence, Vol. II, Sec. 23, p. 559.) For an offence
punishable under Section 120-B the prosecution need not necessarily prove
that the perpetrators expressly agree to do or cause to.be done illegal act;
c the agreement may be proved by necessary implication. Offence of criminal
conspiracy consists not merely in the intention of two or more, b!-Jt in the
agreement of two or more to do an unlawful act by unlawful means. So long
as such a design rests in intention only, it is not indictable. When two agree
to carry it into effect, the very plot is an act in itself, and an act of each of
D the parties, promise against promise, actus contra capable of being enforced,
if lawful, punishable if for a criminal object or for use of criminal means.

In view of what has been stated in Ram Narayan Pop/i's v. CBI, (2003]
3 SCC 641, the evidence of PWs l and 8 which also relates to the earlier
period is clearly covered because of the conspiracy angle and tl}e applicability
E of Section 10 of the Evidence Act.

Section 133 of the Evidence Act is also of significance. It relates to
the evidence of an accomplice. In positive terms it provides that the conviction
based on the evidence of an accomplice is not illegal merely because it
F proceeds upon the uncorroborated testimony of an accomplice, because the
accomplice is a competent witness.

In Bhubon Sahu v. The King, AIR (1949) PC257, it was observed that
the rule requiring corroboration for acting upon the evidence of an accomplice
is a rule of prudence. But the rule of prudence assumes great significance
G when its reliability on the touchstone of credibility is examined. If it is found
<

credible and cogent, the Court can record a conviction even on the
uncorroborated testimony of an accomplice. On the subject of the credibility
of the testimony of an .accomplice, the proposition that an accomplice must _
be corroborated does not mean that there must be cumulative or independent
~

H testimony to the same facts to which he has testified. At the same time the
K. HASHIM v. STATE [PASAYAT, J.] 13

presu11.1ption available under Section 114 of the Evidence Act is of A
significance. It says that the Court may presume that an accomplice is
unworthy of credit unless he is corroborated in "material particulars".

Section 133 of the Evidence Act expressly provides that an accomplice
is a competent witness and the conviction is not illegal merely because it B
proceeds on an uncorroborated testimony of an accomplice. In other words,
this section renders admissible such uncorroborated testimony. But this
Section has to be read along with Section 114, illustration (b ). The latter
section empowers the Court to presume the existence of certain facts and
the illustration elucidates what the Court may presume and makes clear by
means of examples as to what facts the Court shall have regard in considering .- C
whether or not maxims illustrated apply to a given case. Illustration (b) in
express terms says that accomplice is unworthy of credit unless he is
corroborated in material particulars. The Statute permits the conviction of
an accused on the basis of uncorroborated testimony of an accomplice but
the rule of prudence embodied in illustration (b) to Section 114 of the D
Evidence Act strikes a note of warning cautioning the Court that an accomplice
does not generally deserve. to be believed unless corroborated in material
particulars. In other words, the rule is that the necessity of corroboration is
a matter of prudence except when it is safe to dispense with such corroboration
must be clearly present in the mind of the Judge. [See Suresh Chandra Bahri
v. State of Bihar, AIR (1994) SC 2420]. E
Although Section 114 illustration (b) provides that the Court may
presume that the evidence of an accomplice is unworthy of credit unless
corroborated, "may" is not must and no decision of Court can make it must.
The Court is not obliged to hold that he is unworthy of credit. It ultimately F
depends upon the Court's view as to the credibility of evidence tendered
by an accomplice.

In Rex v. Baskerville, [1916] 2 KB 658, it was observed that the
\.
corroboration need not be direct evidence that the accused committed the
crime; it is sufficient if there is merely a circumstantial evidence of his G
connection with a crime.

G.S. Bakshi v. State (Delhi Administration), AIR (1979) SC
569 was dealing with a converse case that if the evidence of an accomplice
is inherently improbable then i~ cannot get strength from corroboration. H
14 SUPREME COURT REPORTS [2004] SUPP. 6 S.C.R.

A Taylor, in his treatise has observed that "accomplice wpo are
" ...
usually interes~ed and always infamous witnesses, and whose testimony is
admitted from necessity, it being often impossible, without having recourse
to such evidence, to bring the prineipal offenders to justice". (Taylor in "A
Treatise on the Law of Evidence" (1931) Vol. l para 967).
B
The evidence of the Approver must, however, be shown to be of a
reliable witness. •
In Jnanendra Nath Ghose v. State of West Bengal, [1960] l SCR 126
·~
: AIR (1959) SC 1199: (1959) Cri LJ 1492, this Court observed that there
c should be corroboration in material particulars of the Approver's statement,
as he is considered as a self-confessed traitor. This Court in Bhiva Doulu
Patil v. State of Maharashtra, AIR (1963) SC 599 : (1963) I Cri LJ 489
held that the combined effect of Sections 13 3 and, 114 illustration (b) of the
Evidence Act was that an accomplice is competent to give evidence but it
D would be unsafe to convict the accused upon his testimony alone. Though
the conviction of an accused on the testimony of an accomplice cannot be
said to be illegal, yet the Courts will, as a matter of practice, not accept the
evidence of such a witness without corroboration in material particulars. In
this regard the Court in Bhiva Doulu Patil 's case AIR ( 1963) SC 599 : (1963)
1 Cri LJ 489, observed (Paras 6 and 7) :
E ~

"In coming to the above conclusion we have not unmindful of the
provisions of S. 133 of the Evidence Act which reads:

Sec. 133. "An accomplice shall be a competent witness against
F an accused person; and a conviction is not illegal merely
because it proceeds upon the uncorroborated testimony of an
accomplice."

It cannot be doubted that under that section a conviction based merely
on the uncorroborated testimony of an accomplice may not be illegal, the
G Courts nevertheless cannot lose sight of the rule of prudence and practice
.(

which in the words of Martin B. in R. v. Boyes, [1861] 9 Cox CC 32 "has '-4

become so hallowed as to be deserving of respect and the words of Lord
Abinger "It deserves to have all the reverence of the law". This rule of
guidance is to be found in illustration (b) to S. 114 of the Evidence Act
~,~
H which is as follows:
K. HASHIM v. STATE [PASAYAT, J.] 15

"The Court may presume that an accomplice is unworthy of A
credit unless he is corroborated in material particulars." ·

The word 'corroboration' m~ans not mere evidence tending to confirm
other evidence. In DPf v. Hester, [1972] 3 All ER 1056, Lord Morris said:
B
"The purpose of corroboration is not to give validity or credence
to evidence which is deficient or suspect or incredible but only to
confirm and support that which as evidence. is sufficient and
satisfactory and credible; and corroborative evidence will only fill
its role if it itself is completely credible ...... "
c
In D.P.P. v. Kilbourne, [1973] I All ER 440, it was observed
thus :

"There is nothing technical in the idea of corroboration. When in
the ordinary affairs of life one is doubtful whether or not to believe D
a particular statement one naturally looks to see whether it fits in
with other statements or circumstances relating to the particular
matter; the better it fits in the more one is inclined to believe it.

-
The doubted statement is corroborated to a greater or lesser extent
by the other statements or circumstances with which it fits in."
E
In R. v. Baskerville (supra), which is a leading case on this aspect,
Loi d Reading said :

"There is no doubt that the uncorroborated evidence of an accomplice
is admissible in law ..... But it has long been a rule of practice at F
common law for the judge to warn the jury of the danger of
convicting a prisoner on the uncorroborated testimony of an
accomplice or accomplices, and, in the discretion of the jµdge, to
advise them not to convict upon such evidence; but the judge
should point out to the jury that it is within their legal province to
convict upon such unconfirmed evidence ...... This rule of practice G
has become virtually equivalent to a rule of law, and since the Court
of Criminal Appeal Act, 1907, came into operation this Court has
held that, in the absence of such a warning by the judge, the
conviction must be quashed ····:· If after the proper caution by the
judge the jury nevertheless convicts the prisoner, this Court will not H
16 SUPREME COURT REPORTS [2004] SUPP. 6 S.C.R.

A quash the conviction merely upon the ground that the testimony of
the accomplice was uncorroborated."

In Rameshwar v. State ofRajasthan, AIR (1952) SC 54, Bose, J ., after
referring to the rule laid down in Baskerville case with regard to the
admissibility 0f the uncorroborated testimony of an accomplice, held thus:
B
"That, in my opinion, is exactly the law in India so far as accomplices
are concerned and it is certainly not any higher in the case of sexual
offences. The only clarification necessary for purposes of this
country is where this class of offence is sometimes tried by a judge
c without the aid of a jury. In these cases it is necessary that the judge
should give some indication in his judgment that he has had this
rule of caution in mind and should· proceed to give reasons for
considering it unnecessary to require corroboration on the facts of
the particular case before him and show why he considers it safe
D to convict without corroboration in that particular case."

Justice Bose in the same judgment further observed thus :

"I turn next to the nature and extent of the corroboration required

E
when it is not considered safe to dispense with it. Here, again, the
rules are lucidly expounded by Lord Reading in Baskerville case
at pages 664 to 669. It would be impossible, indeed it would be
-
dangerous, to formulate the kind of evidence which should, or
would, be regarded as corroboration. Its nature and extent must
necessarily vary with circumstances of each case and also according
F to the particular the offence charged. But to this extent the rules
are clear.

First, it is not necessary that there should be independent confirmation
of every material circumstance in the sense that the independent evidence
in the case, apart from the testimony of the complainant or the accomplice,
<
G should in itself be sufficient to sustain conviction. As Lord Readings says-

'Indeect, if it were required that the accomplice should be confirmed
in every detail of the crime, his evidence would not be essential to
the case, h would be merely confirmatory of other and independent
H testimony.'
K. HASHIM v. STATE [PASAYAT, J.] 17

All that is required is that there must be some additional evidence
'
A
renpering it probable that the story of the accomplice (or complainant) is
true and that it is reasonably safe to act upon it.

Secondly, the independent evidence must not only make it safe to
believe that the crime was committed but must in some way reasonably B
connect or tend to connect the accused' with it by confirming in some
material particular the testimony of the accomplice or complainant that the

-
accused committed the crime. This does not meant that the corroboration
as to identify must extend to all the circumstances necessary to identify tlie
accused with the offence. Again, all that is necessary is that there would be
independent evidence which will make it reasonably safe to believe the C
witness's story that the accused was the one, or among those, who committed
the offence. The reason for this part of the rule is that -

"a man who has been guilty of a crime himself will always be able
to relate the facts of the case, and if the confirmation be only on D
the truth of that history, without identifying the persons, that is
really no corroboration at all ...... It would not at all tend to show
that the party accused participated in it."

.. Thirdly, the corroboration must come from independent sources and
thus ordinarily the testimony of one accomplice would not be sufficient to
corroborate that of another. But of course the circumstances may be such
E

as to make it safe to dispense with the necessity of corroboration and in those
special circumstances a conviction so based would not be illegal. I say this
because it was contended. that the mother in this case was not an independent
source. F
Fourthly, the corroboration need not be direct evidence that the accused
committed the crime. It is sufficient if it is merely circumstantial evidence
of his connection with the crime. Were it otherwise, "many crimes which
are usually committed between accomplices in secret, such as incest, offences
....
with females' (or unnatural offences) could never be brought to justice". G
','
(See MO. Shamsudhin v. State of Kera/a, [1995] 3 SCC 351]

Judged on the background of the legal position as stated above the
;
evidence of PWs l and 2 does not suffer from any infirmity to warrant
rejection for their evidence is not really uncorroborated as is submitted by H
18 SUPREME COURT REPORTS [2004] SUPP. 6 S.C.R.

A learned counsel for the appellants. The evidence of PWs 8 and 19 clearly
...... -
provides the materials. As noted above, even circumstantial evidence can
provide the corroboration. In the instant case, the evidence of PWs l and
2 the~efore clearly meets the requirements of Section 114 (b) in the background
of Section 133 of the Evidence Act.
B
Further question that was raised is whether the essential ingredients of
Section 489A, C and D are satisfied. The said provisions read as follows:

"489A- Counterfeiting currency notes or bank notes.- Whoever
counterfeits, or knowingly performs any part of the process of
c counterfeiting, any currency note or bank note. 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.

D Explanation: For the purposes of this section and of sections
4898, 489C, 489D and 489E 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

E
in any 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.
..
489C - Possession offorged 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
F 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 forging
G or counterfeiting currency notes or bank notes.- 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
H any currency note or bank note, shall be punished with imprisonment
K. HASHIM v. STATE [PASA YAT, J.] 19

for life or with imprisonment of either description for a term which A
may extend to ten years, and shall also be liable to fine.

The expression 'counterfeit' is- defined in Section 28 iPC. The same
reads as follows:
B
"28-Counterfeit.-A person is said to 'counterfeit' who causes one
I
thing to resemble another thing, intended by means of that
resemblance to practice deception, or knowing it to be likely that
deception will thereby be practiced.

Explanation 1: It is not essential to counterfeiting that the imitation C
should be exact.

Explanation 2: When a person causes one thing to resemble another
thing, and the resemblance is that a person might be deceived
thereby, it shall be presumed until the contrary is proved, that the D
person so causing the one thing to resemble the other thing intended
by means of that resemblance to practice deception or knew it to
be likely that deception would thereby be practiced."

Sections 489 A to 489 E deal with various economic offences in respect
of forged or counterfeit currency notes or bank notes. The object oflegislature E
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.

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 F
counterfeiting. Therefore, if the material shows that the accused knowingly
performed any part of the process of counterfeiting, Section 489A becomes
applicable.

Similarly Section 4898 relates to using as genuine forged or
counterfeited currency notes or bank notes. The object of Legislature in G
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.

Section 489C deals with possession of forged or counterfeit currency H
20 SUPREME COURT REPORTS [2004] SUPP. 6 S.C.R.

A 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 489 C and 489 D. As was observed by this Court in State of
Kera/av. Mathai Verghese and Ors., AIR (1987) SC 33, the expression
B '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 8ills.

The wording of Section 489D is very wide and would clearly
C covei;,,..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.

Section 28 defines the word 'counterfeiting' in very wide
D terms. The main ingredients of counterfeiting as laid down in Section 28
are:

(I) causing one thing to resemble another thing;

E (2) intending by means of that resemblance to practise deception, or

(3) knowing it to be likely that deception will thereby be practised.

Thus, if one thing is made to resemble another thing and the intention is
that by such resemblance deception would be practised or even if there is
F no intention but it is known to be likely that the resemblance is such that
deception will thereby be practised there is counterfeiting. (See The State
of Uttar Pradesh v. I. Hafiz Mohd. Ismail, AIR (I 960) SC 669.

In the said case it was observed that there is no necessity of importing
G words like "colourable imitation" therein. In order to apply Section 28 what
the Court has to see is whether one thing is made to resemble another thing
· and if that is so and if the resemblance is such that a person might be
deceived by it, there will be a presumption of the necessary intention or
knowledge to make the thing counterfeit, unless the contrary is proved. ·

H "Counterfeit" in Section 28 does not connote an exact reproduction of
K. HASHIM v. STATE [PASAYAT, J.] 21

the original counterfeited. The Explanation 2 of Section 28 is of great A
significance. It lays down a rebuttable presumption where resemblance is
such that a person might be deceived thereby. In such a case the intention
or the knowledge is presumed unless contrary is proved.

In view of the credible, cogent and reliable evidence tendered, the B
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.
c
The appeals are dismissed.

B.K. Appeal dismissed.

/

I