AAP Tax Law - Indian legal and tax information

Section 238 IPC: Import or Export of Counterfeit Indian Coin

Section 238 of the Indian Penal Code, 1860 dealt with importing into India or exporting from India counterfeit coin that the person knew, or had reason to believe, was a counterfeit of Indian coin.

Pre-BNS legal context: This article explains Section 238 IPC under the law applicable immediately before implementation of the Bharatiya Nyaya Sanhita, 2023. The IPC was repealed when the BNS came into force on 1 July 2024, subject to the applicable repeal-and-savings provisions for earlier conduct and proceedings.

Section 238 IPC - Statutory Provision

Import or export of counterfeits of the Indian coin.

Whoever imports into India, or exports therefrom, any counterfeit coin, which he knows or has reason to believe to be a counterfeit of Indian coin, 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.

Historical amendment notes:
1. The Adaptation of Laws Order, 1950 substituted "Indian coin" for "the Queen's coin".
2. 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 "India".
3. Act 26 of 1955, section 117 and the Schedule substituted "imprisonment for life" for "transportation for life" with effect from 1 January 1956.

Meaning of Section 238 IPC

Section 238 was the aggravated provision dealing specifically with counterfeit Indian coin crossing India's borders. It covered both importing such counterfeit coin into India and exporting it from India, provided the accused knew or had reason to believe that the coin was a counterfeit of Indian coin.

The section therefore required more than proof that a counterfeit coin crossed the border. The prosecution also had to establish the statutory mental element concerning its counterfeit character and its character as counterfeit Indian coin.

Essential Ingredients

Punishment and Classification Before BNS

OffenceImport or export of counterfeit Indian coin, knowing or having reason to believe it to be counterfeit Indian coin
PunishmentImprisonment for life, or imprisonment of either description for a term up to 10 years, and fine
CognizableYes
BailNon-bailable
Triable byCourt of Session
CompoundableNo

Meaning of "Reason to Believe"

Section 26 IPC provided that a person is said to have "reason to believe" a thing if the person has sufficient cause to believe that thing, but not otherwise. For Section 238, the evidence therefore had to support knowledge or sufficient cause to believe that the coin was a counterfeit of Indian coin.

Section 237 and Section 238 IPC - Difference

Section 237 dealt generally with import or export of counterfeit coin, with punishment extending to three years plus fine. Section 238 specifically addressed counterfeit Indian coin and prescribed the substantially more severe punishment of imprisonment for life, or imprisonment up to ten years, plus fine. The character of the counterfeit coin was therefore central to the distinction between the two provisions.

Related IPC Provisions

Section 238 formed part of Chapter XII of the IPC concerning offences relating to coin and Government stamps. Section 230 defined coin for that chapter. Sections 231 and 232 dealt with counterfeiting coin and Indian coin; Sections 233 to 235 addressed instruments and materials for counterfeiting; Section 236 dealt with abetment in India of counterfeiting outside India; and Section 237 dealt with import or export of counterfeit coin generally.

Practical Legal Point

Section 238 carried a severe punishment because it concerned cross-border movement of counterfeit Indian coin. Proof of the accused's knowledge or reason to believe remained an express ingredient. The classification and punishment should therefore be applied only after the prosecution establishes the elements specified in the section.

Official Legal Sources

For authoritative statutory text and the procedural framework applicable immediately before BNS implementation, consult the Indian Penal Code, 1860 and the First Schedule to the Code of Criminal Procedure, 1973.

Indian Penal Code, 1860 - India Code
Code of Criminal Procedure, 1973 - India Code