Section 240 IPC: Delivery of Indian Coin Possessed with Knowledge That It Is Counterfeit
Section 240 of the Indian Penal Code, 1860 applied to fraudulent delivery or attempted delivery of counterfeit Indian coin where the person knew, when first becoming possessed of the coin, that it was counterfeit Indian coin.
Section 240 IPC - Statutory Provision
Whoever, having any counterfeit coin which is a counterfeit of Indian coin, and which, at the time when he became possessed of it, he knew to be a counterfeit of Indian coin, fraudulently or with intent that fraud may be committed, delivers the same to any person, or attempts to induce any person to receive it, shall be punished with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Historical amendment note: The Adaptation of Laws Order, 1950 substituted "Indian coin" for "the Queen's coin".
Meaning of Section 240 IPC
Section 240 was the aggravated counterpart of Section 239 for counterfeit Indian coin. It addressed a person who knowingly received counterfeit Indian coin and thereafter fraudulently delivered it, or attempted to induce another person to receive it.
The section required knowledge at a specific point in time: the accused must have known that the coin was a counterfeit of Indian coin when becoming possessed of it. Later discovery of the counterfeit character did not satisfy that particular element of Section 240.
Essential Ingredients
- The accused must have a counterfeit coin.
- The coin must be a counterfeit of Indian coin.
- When the accused became possessed of the coin, the accused must have known it to be a counterfeit of Indian coin.
- The accused must deliver the coin to another person or attempt to induce another person to receive it.
- The delivery or attempt must be fraudulent or made with intent that fraud may be committed.
Punishment and Classification Before BNS
| Offence | Fraudulent delivery or attempted delivery of counterfeit Indian coin known to be counterfeit Indian coin when it came into possession |
|---|---|
| Punishment | Imprisonment of either description for a term up to 10 years and fine |
| Cognizable | Yes |
| Bail | Non-bailable |
| Triable by | Court of Session |
Knowledge When First Possessed
The phrase concerning knowledge "at the time when he became possessed of it" was central to Section 240. The prosecution therefore had to prove not only that the coin was counterfeit Indian coin and was later delivered or offered, but also that the accused had the required knowledge when possession began.
Fraudulent Delivery or Attempt
Possession alone was not the act prohibited by Section 240. The provision required delivery to another person, or an attempt to induce another person to receive the coin, carried out fraudulently or with intent that fraud may be committed. Separate possession offences appeared in Sections 242 and 243 IPC.
Section 239 and Section 240 IPC - Difference
Section 239 applied to counterfeit coin generally and prescribed imprisonment up to five years plus fine. Section 240 applied specifically to counterfeit Indian coin and prescribed imprisonment up to ten years plus fine. Both provisions required knowledge of the counterfeit character when the accused first became possessed of the coin and required fraudulent delivery or an attempt to induce receipt.
Section 240 and Section 241 IPC - Difference
Section 240 applied where the accused knew at the time of taking possession that the Indian coin was counterfeit. Section 241 dealt with a different situation: a person later delivered counterfeit coin as genuine while knowing it was counterfeit, but had not known it was counterfeit when first taking possession. The timing of knowledge therefore materially affected the applicable provision.
Related IPC Provisions
Section 240 formed part of Chapter XII of the IPC concerning offences relating to coin and Government stamps. Section 230 defined coin; Sections 231 and 232 dealt with counterfeiting coin and Indian coin; Sections 237 and 238 dealt with import or export of counterfeit coin; Section 239 dealt with delivery of counterfeit coin generally; Section 241 dealt with later-acquired knowledge before delivery as genuine; and Sections 242 and 243 dealt with specified forms of possession.
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 First Schedule - India Code