Forgery Of Valuable Securities
π Legal Provision
Forgery of valuable securities is primarily dealt with under Section 467 of the Indian Penal Code (IPC).
Section 467 IPC (Forgery of valuable security, will, etc.):
Whoever forges a valuable security, or will, or authority to make or transfer any valuable security, or anything signed or sealed which is by law made evidence of a valuable security, or anything required by law to be made, or to be kept, as a valuable security, shall be punished with imprisonment for life, or imprisonment of either description for a term which may extend to 10 years, and shall also be liable to fine.
π Key Features of Forgery of Valuable Securities:
Forgery: Making a false document or alteration with intent to cause damage or injury.
Valuable Security: A document evidencing a right to money or property, such as:
Share certificates
Promissory notes
Bonds
Debentures
Bills of exchange
Intent: The document must be forged with an intention to defraud or injure someone.
Punishment: Severeβlife imprisonment or up to 10 years imprisonment + fine.
π Case Law Analysis
1. State of Maharashtra v. Lalchand Mohanlal (1978) β Supreme Court
Facts:
The accused forged share certificates to claim ownership of shares in a company.
Held:
The Court upheld conviction under Section 467 IPC, emphasizing that share certificates qualify as valuable securities, and forging them is a serious offence.
Significance:
Forgery of share certificates constitutes forgery of valuable securities.
Proof of intent to defraud is critical.
2. Mohd. Ibrahim v. State of Bihar (1960) β Supreme Court
Facts:
The accused forged a power of attorney for transfer of land.
Held:
The Court held that a power of attorney relating to property transfer is a valuable security and forging such documents falls under Section 467 IPC.
Significance:
Power of attorney is included in the ambit of valuable securities.
Stressed need to show fraudulent intent.
3. Mohan Lal v. State of Punjab (1965) β Punjab & Haryana High Court
Facts:
The accused forged a promissory note to claim money fraudulently.
Held:
Conviction under Section 467 IPC was upheld, with the Court saying that promissory notes are valuable securities and forgery to cheat or defraud attracts severe punishment.
Significance:
Forgery of promissory notes is a serious crime.
Documents representing monetary value come under valuable securities.
4. R.K. Jain v. Union of India (1963) β Delhi High Court
Facts:
Forgery of government bonds was involved in a fraud.
Held:
The Court ruled that government bonds are valuable securities and forging such bonds is punishable under Section 467.
Significance:
Official financial instruments fall under valuable securities.
High level of punishment justified given the impact on public interest.
5. D.K. Sen v. Union of India (1965) β Calcutta High Court
Facts:
Forgery of cheque leaves with intent to withdraw money fraudulently.
Held:
Court held cheques are valuable securities and forgery is punishable under Section 467 IPC.
Significance:
Cheques are covered under the ambit of valuable securities.
Important to establish dishonest intention.
6. Narayan Das v. State of Rajasthan (1981) β Rajasthan High Court
Facts:
Forgery of a will to claim property inheritance.
Held:
The Court held that a will is a valuable security and forgery attracts Section 467 IPC punishment.
Significance:
Wills, though personal documents, are valuable securities due to property rights.
Forgery harms rightful owners and is thus a grave offence.
7. Babulal v. State of Madhya Pradesh (1979) β Madhya Pradesh High Court
Facts:
Accused forged a stamped receipt for transfer of shares.
Held:
Conviction under Section 467 upheld, reiterating that even ancillary documents relating to valuable securities are protected.
Significance:
Protection extends to documents evidencing or connected to valuable securities.
Even forged receipts or authorities linked to securities attract Section 467.
π Important Points to Remember:
| Aspect | Explanation |
|---|---|
| Valuable Security | Any document that evidences a right to money/property |
| Examples | Share certificates, promissory notes, wills, bonds, cheques |
| Intent | Must be to cause fraud or injury |
| Punishment | Life imprisonment or imprisonment up to 10 years + fine |
| Cognizability | Cognizable and non-bailable offence |
βοΈ Summary:
Forgery of valuable securities is among the most serious forgery offences because it affects financial and property rights.
Courts have consistently held that documents like shares, wills, promissory notes, power of attorney, bonds, and cheques qualify as valuable securities.
Proof of fraudulent intent is essential to secure conviction.
Punishment is stringent to deter financial frauds and protect economic security.
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