Section 237 IPC: Import or Export of Counterfeit Coin
Section 237 of the Indian Penal Code, 1860 dealt with importing counterfeit coin into India or exporting counterfeit coin from India when the person knew, or had reason to believe, that the coin was counterfeit.
Section 237 IPC - Statutory Provision
Whoever imports into India, or exports therefrom, any counterfeit coin, knowing or having reason to believe that the same is counterfeit, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.
Historical amendment note: The words "British India" were successively substituted by the Adaptation of Laws Order, 1948, the Adaptation of Laws Order, 1950, and Act 3 of 1951, section 3 and the Schedule, resulting in the word "India" in the provision.
Meaning of Section 237 IPC
The section covered two forms of cross-border movement: bringing counterfeit coin into India and taking counterfeit coin out of India. However, the movement of a counterfeit coin by itself did not reproduce all the statutory requirements. The person had to know, or have reason to believe, that the coin was counterfeit.
This knowledge requirement distinguished criminal import or export under Section 237 from innocent handling where the person lacked the mental element required by the section.
Essential Ingredients
- There must be a counterfeit coin.
- The accused must import that counterfeit coin into India or export it from India.
- At the relevant time, the accused must know or have reason to believe that the coin is counterfeit.
- The prosecution must establish both the prohibited movement and the required mental element from the evidence in the case.
Punishment and Classification Before BNS
| Offence | Import or export of counterfeit coin, knowing or having reason to believe that it is counterfeit |
|---|---|
| Punishment | Imprisonment of either description for a term which may extend to 3 years and fine |
| Cognizable | Yes |
| Bail | Non-bailable |
| Triable by | Magistrate of the first class |
Meaning of "Knowing or Having Reason to Believe"
Section 237 expressly required knowledge or reason to believe that the coin was counterfeit. Under Section 26 IPC, a person was said to have "reason to believe" a thing if the person had sufficient cause to believe that thing, but not otherwise. The question therefore depended on the evidence and circumstances showing what the accused knew or had sufficient cause to believe.
Section 237 and Section 238 IPC - Difference
Section 237 dealt generally with importing or exporting counterfeit coin and prescribed imprisonment up to three years plus fine. Section 238 specifically dealt with importing or exporting counterfeit coin known or believed to be a counterfeit of Indian coin and carried a substantially higher punishment. The nature of the counterfeit coin was therefore important in determining which provision applied.
Related IPC Provisions
Section 237 formed part of Chapter XII of the IPC concerning offences relating to coin and Government stamps. Section 230 defined coin for the chapter. Sections 231 and 232 dealt with counterfeiting coin and Indian coin, Sections 233 to 235 dealt with instruments or materials connected with counterfeiting, Section 236 dealt with abetting from India counterfeiting outside India, and Section 238 dealt specifically with import or export of counterfeit Indian coin.
Practical Legal Point
For liability under Section 237, evidence concerning the import or export had to be considered together with evidence of knowledge or reason to believe that the coin was counterfeit. The statutory mental element was therefore a substantive ingredient of the offence, not merely an incidental circumstance.
Official Legal Sources
For authoritative statutory text and the pre-BNS procedural framework, consult the Indian Penal Code, 1860 and the Code of Criminal Procedure, 1973 through India Code.
Indian Penal Code, 1860 - India Code
Code of Criminal Procedure, 1973 - India Code