Section 241 IPC: Delivery of Counterfeit Coin as Genuine When Initially Received Without Knowledge
Section 241 of the Indian Penal Code, 1860 applied where a person received a counterfeit coin without knowing it was counterfeit, later discovered its counterfeit character, and nevertheless delivered it as genuine or attempted to induce another person to receive it as genuine.
Section 241 IPC - Statutory Provision
Whoever delivers to any other person as genuine, or attempts to induce any other person to receive as genuine, any counterfeit coin which he knows to be counterfeit, but which he did not know to be counterfeit at the time when he took it into his possession, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine to an amount which may extend to ten times the value of the coin counterfeited, or with both.
Illustration to Section 241 IPC
A, a coiner, delivers counterfeit Company's rupees to his accomplice B, for the purpose of uttering them. B sells the rupees to C, another utterer, who buys them knowing them to be counterfeit. C pays away the rupees for goods to D, who receives them, not knowing them to be counterfeit. D, after receiving the rupees, discovers that they are counterfeit and pays them away as if they were good. Here D is punishable only under this section, but B and C are punishable under Section 239 or Section 240, as the case may be.
Meaning of Section 241 IPC
Section 241 addressed later-acquired knowledge. The person must have taken the coin into possession without knowing it was counterfeit, subsequently learned that it was counterfeit, and then knowingly passed it off as genuine or attempted to persuade another person to accept it as genuine.
The provision therefore distinguished an initially innocent recipient who later acts dishonestly from a person who already knew the coin was counterfeit when taking possession.
Essential Ingredients
- The coin must be counterfeit.
- When the accused first took the coin into possession, the accused must not have known that it was counterfeit.
- Before the subsequent delivery or attempt, the accused must have come to know that the coin was counterfeit.
- The accused must deliver the counterfeit coin to another person as genuine, or attempt to induce another person to receive it as genuine.
Punishment and Classification Before BNS
| Offence | Knowingly delivering counterfeit coin as genuine, or attempting to induce another to receive it as genuine, where its counterfeit character was not known when first possessed |
|---|---|
| Punishment | Imprisonment of either description for up to 2 years, or fine up to 10 times the value of the coin counterfeited, or both |
| Cognizable | Yes |
| Bail | Non-bailable |
| Triable by | Any Magistrate |
| Compoundable | No |
Why the Timing of Knowledge Matters
The defining feature of Section 241 was the absence of knowledge when the coin first came into the person's possession. Liability under this section arose when the person later learned that the coin was counterfeit but still delivered it as genuine or attempted to induce another person to accept it as genuine.
Section 239 and Section 241 IPC - Difference
Under Section 239, the accused knew that the coin was counterfeit when first becoming possessed of it and later fraudulently delivered it or attempted to induce another person to receive it. Under Section 241, the accused did not know of the counterfeit character when first taking possession, but acquired that knowledge before later passing or attempting to pass the coin as genuine.
Section 240 and Section 241 IPC - Difference
Section 240 specifically concerned counterfeit Indian coin and required knowledge of that counterfeit character when possession began. Section 241 was not confined to Indian coin and dealt with the different factual situation in which knowledge was acquired only after possession had begun.
Related IPC Provisions
Section 241 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 239 and 240 dealt with delivery where knowledge existed when possession began; and Sections 242 and 243 dealt with possession of counterfeit coin in specified circumstances.
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.