# SATNARAIN SAO v. THE STATE OF BIHAR

- **Citation:** [1973] 1 S.C.R. 207
- **Court:** Supreme Court of India
- **Decided:** 1972-04-18
- **Case number:** Criminal Appeal No. 6Tof 1968
- **Bench:** A. N. Grover, M. H. Beg
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/satnarain-sao-v-the-state-of-bihar-5779
- **Pages:** 6

## Headnote

207
Indian Pena.I Code. s. 411 and Evidence Act s. 144(a)-Stolen pro·
perty found in the possession of accused shortly after theft-Accused's
explanqtion must be found to be reasonably true to displace presu1nption
against him under.s. 144 Illustration (a) Evidence Act.
.
A Sen-Raleigh cycle which was stolen by one S was recovered from
the house of the appellant along with several other cycles.
The appellant's explanation was that some of the cycles belonged to members c>f
his family and the others were pledged with him in the course of his
business. Ext. :PA was produced oy the appellant to show that the Sen·
Raleigh cycle in question had been pledged with him by. S.
The Trial
Court did not accept the document as genuine, rejected his explanation
as to how the said cycle came into his poss~ssion and convicted
him
under s. 411 l.P.C.
The conviction was upheld by the High Court
Dismissing the appeal, this Court,
HELD,: The .appellant had sought to prove the document eixt.
DA to support the transaction of pledge. That document had rixhtly
been found not Jo have been proved.
Apart from the Sen-Raleigh cycle
several other cycles were found in the possession of the appellant which
he clainwd to have been pledged with him. No .. article of any other
kind was either pointed out or claimed to have been pledged with the
appellant or with members
of
his
family
which
\Wold
normally
have b:en done ·if the version given by him that the business of pawn
brokers was being ~ried on had
any truth in it.
Pawn-brokers are
ordinarily and in normal course expected to rn3.intain some books of
account or some documents which contain the particulalrs of the transactions relating to pledge.
There was no indication or suggestion by
the appellant that he was
maintaining any such books of account or
documents.
[21 lFJ
The above circumstances were sufficient to show that the court would
be justified in holding that the explanation gi"°n by the appellant could
not reasonably be true.
A presumption therefore could immediately be
drawn in accordance with ·s. 114. Illustration (a) of the Evidence Act.
There was hardly any evidence worth the name by which it could be
said that the presumption had been rebutted by the appellant. [211Hl
The appeal must accordingly be dismissed.
Atwal v. Massay, [1971] 3 All. E.R. 881; Otto George Gfeller v.
The King, !1943] P.C. 211 and R:ex v. Abramovitch, !19141 84 L.J.
(K.B.) 391. referred to.

## Text

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SATNARAIN SAO
v.
THE STATE OF BIHAR
April 18, 1972
[A. N. GROVER AND M. H. BEG, JJ.)
207
Indian Pena.I Code. s. 411 and Evidence Act s. 144(a)-Stolen pro·
perty found in the possession of accused shortly after theft-Accused's
explanqtion must be found to be reasonably true to displace presu1nption
against him under.s. 144 Illustration (a) Evidence Act.
.
A Sen-Raleigh cycle which was stolen by one S was recovered from
the house of the appellant along with several other cycles.
The appellant's explanation was that some of the cycles belonged to members c>f
his family and the others were pledged with him in the course of his
business. Ext. :PA was produced oy the appellant to show that the Sen·
Raleigh cycle in question had been pledged with him by. S.
The Trial
Court did not accept the document as genuine, rejected his explanation
as to how the said cycle came into his poss~ssion and convicted
him
under s. 411 l.P.C.
The conviction was upheld by the High Court
Dismissing the appeal, this Court,
HELD,: The .appellant had sought to prove the document eixt.
DA to support the transaction of pledge. That document had rixhtly
been found not Jo have been proved.
Apart from the Sen-Raleigh cycle
several other cycles were found in the possession of the appellant which
he clainwd to have been pledged with him. No .. article of any other
kind was either pointed out or claimed to have been pledged with the
appellant or with members
of
his
family
which
\Wold
normally
have b:en done ·if the version given by him that the business of pawn
brokers was being ~ried on had
any truth in it.
Pawn-brokers are
ordinarily and in normal course expected to rn3.intain some books of
account or some documents which contain the particulalrs of the transactions relating to pledge.
There was no indication or suggestion by
the appellant that he was
maintaining any such books of account or
documents.
[21 lFJ
The above circumstances were sufficient to show that the court would
be justified in holding that the explanation gi"°n by the appellant could
not reasonably be true.
A presumption therefore could immediately be
drawn in accordance with ·s. 114. Illustration (a) of the Evidence Act.
There was hardly any evidence worth the name by which it could be
said that the presumption had been rebutted by the appellant. [211Hl
The appeal must accordingly be dismissed.
Atwal v. Massay, [1971] 3 All. E.R. 881; Otto George Gfeller v.
The King, !1943] P.C. 211 and R:ex v. Abramovitch, !19141 84 L.J.
(K.B.) 391. referred to.
CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No.
6Tof 1968.
.
.
Appeal by special leave from the judgment and order dated
January 18, 1968 of the Patna High Court in Criminal Appeal No.
407 of 1966.
208
SUPREME COURT REPORTS
[1973] 1 S.C.R.
S. C. Agarwala and V. J. Francis, for the appellant
B. P. Jha, for the respondent.
The Judgment of the Court was delivered by
Grover, J. This is an appeal by special leave from a judgment
of the Patna High Court upholding the conviction of the appellant
under s. 411 of the Indian Penal Code for which a sentence of
three years' rigorous imprisonment. was imposed.
According to the case of the prosecution a Sen-Raleigh cycle
was stolen from the possession of Sheo Charan Lal. He reported
the matter to the Police on March 25, 1965. It appears that on
May 11, 1965 the Station House Officer, Incharge Giridih Police
Station A.D.N. Sinha learnt while he was moving about in the
town on the Moharram day that a thief was running away with a
cycle. The alleged thief was apprehended and the cycle in his
possession was taken into custody. The name of that person was
Mohnd. Siddique. Re made a s<tatement to the police officer which
led him to search the pr~mlses of the appellant. As a result of the
search seven cycles including the Sen-Raleigh cycle belonging to
Sheo Charan Lal which was stolen on March 24, 1965 and three
other cycles were recovered from the house of the
appellant.
Mohd. Siddique and the appellant were tried, the former under
s. 3 79 and the latter under s. 411 of the Indian Penal Code. Siddique was convicted and sentenced but he did not file any appeal.
It was not disputed before the High Court that the Sen-RaJeigh
cycle was recovered along with nine other cycles as a result of the
search of the house of the appellant by A.D.N. Sinha the S.H.O.,
on May 11, 1965. It was also proved that,.that cycle was stolen,
The explanatjon given by the appellant was that three out of the
10 cycles belonged to the members of his family and the other
seven had been pledged with him as he carried on the_ business of
a pawn broker.
The Sen-Raleigh cycle had been pledged by
Sir1..i;,,11e with him and that is how the saiq cvcle was recovered
tl!'!.-:'t""'""'l"..
~J·-·
from his possession. P.W. 1 Jayantilal and P:W. 2 Shyam Narain
,Singh deposed that the appellant as well as his brothers and other
members of his family lived in the same house. It was further
stated by them that the appellant and his brothers worked as contractors and they als<' took things on pawn and advanced money.
According to Shyam Narain Singh he had seen ornaments an~
utensils being taken on pledge by the appellant and metr.bers of his
family although he had not seen him taking any cycle o~ pledge.
The appellant also produced a document Exh.DA which was
scribed by one Baldev Pandit and had been atteFt.ed by some
witnesses. In this document it was stand that Rs. 80 had been
received by Siddique by way of advance from the appellant and.
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SATNARAIN v. STATE. (Grover, J.)
209
that the cycle in question had been pledged with the latter. Neither
the scribe nor Mahabir Sao or Nanden who were the attesting
witnesses gave evidence. D.W. I Ramjit Sao a neighbour deposed
that the document Exh.A had been scribed in hi> presence and
that Rs. 80/- had been paid to Siddique. Siddique had pawned
the cycle by way of security for the advance. The courts below
found that this document had been manufactured for the purpose
of the case implying thereby that it was not genuine. The appellant does not appear to have produced any evidence about the
pledging of the other cycles which were found in his possession
nor did he point to any other article apart from the cycles which
had been pledged with him in the course of his business when the
search was mad·~ of his house by the S.H.0. A. D. N. Sinha.
The High Court, apart from other facts, took the following
matters into consideratioln while upholding the conviction of the
appellant :
( 1) Although two defence witnesses had been examined by
the appellant there was nothing to show that he had taken the
ordinary precaution of making proper enquiries about the ownership of the cycle before advancing any loan on its security.
(2) It was significant that the document Exh. A was quite
silent as to the source from where Siddique had got that cycle and
when he had acquired it.
(3) These facts showed that the transaction could not have
been a bona fide transaction by the person c~rrying on bona fide
business of advancing loans on pledge.
( 4) The Investigating Officer had deposed to the fact that
after the recovery of 10 cycles he made a verification from the
records of the police station and found that besides the SenRaleigh cycle cases had been instituted earlier with respect to four
more cycles out. of the ·recovered cycles.
( 5) Even if it be assumed that this evidence was not admissible
according to the charge as framed with regard to two cycles the
same had been recovered from the place of the appellant which
had been admitted by Siddique as having been stolen by him.
( 6) There could be no doubt that at least two of the 10 cycles
recovered from the possession of the
appellant were
stolen
properties.
(7) Considering the above aspect as well as the fact that theconduct of the . appellant in connection with the taking possession
of the cycle in question from Siddique was not at all consistent
with the conduct of a man of ordinary prudence it was not possible
to accept the appellant's contention that he had taken possession
of the cycle without knowledge or belief that it was stolen.
210
SUPREME COURT REPORTS
[19'73] l S.C.R.
Learned counsel for the appellant has subjected the
above
;easons given by the High Court for sustaining the conviction to
criticism on several grounds. It has been firstly pointed out that
admittedly the trial was confined to the alleged theft of the SenRaleigh cycle and its having been received by the appeHant . in
circumstances which made him guilty of an offence under s. 411
-0f the Indian Penal Code; the prosecution relating to the ()ther
cycles should not have been taken into account. It has next been
urged that the whole approach with r.:;card to the appellant not
having made bona fide enquiry from Siddique before accepting
the Sen-Raleigh cycle in pledge was unsustainable in law. We
may in this connection refer to a judgment of Lord Widgery C.J.
in Atwal v. Masse)!(') in which it was laid down that in order to
establish an offence under s. 22 of the (English) Theft Act 1958
which is similar in terms to s. 411 of the Indian Penal Code, it
was not sufficient to show that the goods had been received in
circumstances which would have put a reasonable man on enquiry; the question was a subjective one; was the appellant aware
of the theft or did he believe the goods to be stolen or did he,
suspecting the goods to be stolen, deliberately shut his eyes to
the circumstances "?
The next submission on behalf of the appel-
]ant is that the correct ambit and scope of the presumption which
can be drawn under s. 114, illustration (a) of the Evidence Act
was not considered by the High Court or the courts below.
Section 114 provides th~t the court may presume the e.xist-
·ence of any fact which it thinks likely to have happened regard
being had to the common course of natural events, human conduct and public and private business, in their relation to facts of
the particular case. Illustration (a) is as follows : that a person
who is in possession of stolen property sqon afte.r the theft is
either the thief or has received thd goods knowing that to be stolen
unless he 'can account for his possession. In Otto George Gfeller
v. The' King(') the law as enunciated in Rex v. AbramovitchC°)
was accepted as representing the correct statement on the subiect
of tlie presumption to be drawn in such cases.
That was in 'the
following terms :
"Upon the prosecution establishing that the accused
were in possession of goods recently stolen they may in
the absence of any explanation by the accused of tlie way
in which the goods came into their possession which
might reasonably be true find them guilty, but that if an
explanation were given which the jury think
might
reasonably be true, and which is consistent with innocence although they were not convinced of its truth the
. (I) [1971] 3 All. E.R. 881.
(2) [!943] P.C. 211.
(3) [1914] 84 L.J. [K.B.] 391.
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SATNARAIN v. STATE (Grover, J.)
prisoners were entitled to be acquitted inasmuch as the
prosecution would have failed to discharge the duty
cast upon it of sllltisfying the jury beyond reasonable
doubt of the guilt of the accused".
21!
It has been urged before us that the appellant had given an explanation of how he came into possession of the Sen-Raleigh cycle,
his explanation being that it had been pledged with him by Siddique in the ordinary course of business which he was carrying
on and that explanation had been sought to be supported by evidence.
The two prosecution witnesses had testified that the
appellant and other members of his family were carrying on the
business of pawn brokers apart from other avocations which they
were following. It is emphasised that according to the above
statement of law even if the courts were not convinced of the
truth of the explanation but if the same could be held to' be
reasonably true the prosecution must be considered to have failed to dischare:e the duty cast upon rt of satisfying the court beyond r915onable doubt of the guilt of the appellant.
The question that the courts, therefore, had to decide was
whether the explanation given by the appellant in view of the ~
mission that the Sen-Raleigh cycle was stolen property could be
held to fall within the above rule, namely, whether it might
reasonably- be true even though the courts were not convinced
of its truth. Since the courts below and the High Court have
taken some irrelevant and inadmissible matters into consideration
.E · we have examined with care the explanation given by the appellant in the light of the entire facts and we are unable
to come to the conclusion that the explanation could be reg~rded
such as might reasonably be true. The first. and the most important fact is that the appellant had sought to prove the document
ext.DA to support the transaction of pledge. That document had
F . rightly been found not to have been proved. Apart from . the
Sen-Raleieh cycle several other cycles were found in the possession of the appellant which he claimed to have been pledged with
him.
No articles of any other kind were either pointed out or
claimed to have been pledged with the appellant or with members of his family which weuld normally have been done if the
-G
· v•mion given by him that the business of pawn brokers was being
carried on had any truth in it. Pawn-brokers are ordinarily and
in normal course expected to maintain some books of account or
some documents which contain the particulars of the transactions
relating to pledge. There was no indication or suggestion by
the appellant that he was maintaining any such books of account ·
H
or documents.
The above circumstances, in our opinion, were sufficient to
show that the court ytould be justified in holding that the explanation given by the appellant could not reasonably be true. A
212
SUPREME COURT REPORTS
[1973] 1 S.C.R.
presumption, therefore, could immediately be drawn in accord,
ance with s. 114, Illustration (a) of the Evidence Act.
There
was hardly any evidence worth the name by which it could be
said that the presumption had been rebutted by the appellant.
In the result the conviction and the sentence of the appellant
are maintained and the appeal is dismissed. He was released on
bail; he shall surrender to the bailbonds.
G.C.
Appeal dismissed'
A