Law: Code of Criminal Procedure (West Pakistan Amendment) Act, 1964

Section: 410,103,342,340(2)

Law: Foreign Exchange Regulation Act, 1947

Section: 4,23

Summary (a) Mere possession or recovery of foreign currency, in the absence of any cogent evidence demonstrating its sale, purchase, lending, borrowing, exchange, or use in any unauthorized business, is insufficient to attract the mischief of Section 4 of the Foreign Exchange Regulation Act, 1947. The said provision is designed to regulate and prohibit unauthorized dealings in foreign exchange, and does not criminalize mere possession or retention thereof. Its true object is to curb illicit transactions in foreign exchange, not to penalize simple custody, unless it is affirmatively established that such currency was being dealt with in contravention of the law. Furthermore, subsection (1) of Section 23 of the Act prescribes penal consequences for violations and empowers the competent Tribunal, in addition to awarding sentence, to order confiscation of the currency or property involved in the contravention. Thus, confiscation is neither automatic nor independent; rather, it is ancillary to, and contingent upon, proof of contravention and a consequent conviction. (b) Mere denial of ownership by the appellant in his statement recorded under Section 342 Cr.P.C. does not, by itself, suffice to vest the recovered foreign currency in the State, in the absence of independent and affirmative evidence establishing its unlawful origin or nexus with an offence.   📜 Laws & Sections Used Section 410 Cr.P.C. Section 4 Foreign Exchange Regulation Act 1947 Section 23 Foreign Exchange Regulation Act 1947 Section 342 Cr.P.C. Section 340(2) Cr.P.C. Section 103 Cr.P.C. 🧾 2-Word Description of Case Currency Acquittal       JUDGMENT  The appellant has preferred the instant appeal under Section 410 Cr.P.C. against the judgment dated 20.11.2019 passed by the learned Tribunal/Sessions Judge, Abbottabad, whereby he was convicted under Section 4 read with Section 23 of the Foreign Exchange Regulation Act, 1947 and sentenced to undergo rigorous imprisonment for two years with fine of Rs.20,000/-, and in default whereof to further undergo simple imprisonment for   two months. The foreign currency allegedly recovered from the shop of the appellant…