IPC Section 467 - Forgery of valuable security, will

Section 467 of the Indian Penal Code, 1860 (hereinafter referred to as IPC) deals with forgery, associated with highly valuable documents. It outlines that whoever forges a valuable security, for example, a bond or a financial instrument, a will, an authority to adopt a son or any document that gives authority to create or transfer valuable securities, etc. will be dealt with as per the Section.

In short, this Section elaborates on the serious harm of document forgery. It can lead a person to serious disadvantages such as financial loss, legal complications, and trust violations. By providing severe punishments, the law deters people from attempting this forgery and hence protects the integrity and originality of the documents. This section preserves order and faith in matters of finance and the law.

Legal Provision: Section 467 Forgery of valuable security, will, etc.

Whoever forges a document which purports to be a valuable security or a will, or an authority to adopt a son, or which purports to give authority to any person to make or transfer any valuable security, or to receive the principal, interest or dividends thereon, or to receive or deliver any money, movable property, or valuable security, or any document purporting to be an acquittance or receipt acknowledging the payment of money, or an acquittance or receipt for the delivery of any movable property or valuable security, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.

Simplified explanation of IPC Section 467

Section 467 of the Indian Penal Code prescribes penalties for the forgery of significant documents, with a particular emphasis on financial instruments. This includes the forgery of securities, wills, and documents that confer special powers. Key aspects of IPC Section 467 include:

Forgery of material documents

1. Valuable security: Covering bonds, stocks, or other such financial agencies.
2. Will: It is a legal document wherein it may contain a person's desired shall be done to his properties after his death.
3. Authority to adopt a son: It is a document wherein a certain person is given the power to adopt a son.
4. Other authorities: These are papers similar to the ones above, yet they grants one authority or power to:
   1. Execute or transfer valuable securities.
   2. Receive the principal (first lump of money) or interest or dividends from securities.
   3. Receive and deliver money, movable property or valuable security.

Forgery of receipts

1. Acknowledgment of payment: Documents showing that money has been paid.
2. Delivery of property: Receipts showing that movable property or valuable security has been delivered.

Punishment

1. Imprisonment for Life: This is the highest degree of punishment.
2. Imprisonment up to ten Years: This is the lesser degree of punishment prescribed for imprisonment of either description “simple or rigorous” up to ten years
3. Fine: This is a monetary punishment and shall be awarded along with the imprisonment.

Clarification of key components of Section 467

1. Forgery: It means making a false document or falsification of a real document with the intent to deceive.
2. Valuable security: These are financial instruments, such as shares, bonds, or other instruments of huge value.
3. Will: It is a legal document detailed to illustrate how the estate of somebody shall be run and distributed at the instance of one's death.
4. Authority to adopt: A document that gives one the legal right to adopt a child.
5. Authority to handle securities and property: A set of documents giving powers to deal with financial assets or property of someone else.
6. Receipts and acquittances: Documents given between the parties as evidence of payment or given in respect of the delivery of property.

Whosoever, willfully, and with their knowledge and permission, makes a false document in respect of the matters or transactions before mentioned, will be severely punished according to the law.

Documents excluded from the ambit of Section 467

Section 467 exclusively deals with the forgery of highly valuable and important documents. Some kinds of documents, thus, remain beyond its scope. These are as follows:

• Personal letters: Letters, e-mails, and personal messages of correspondence that are of no financial or legal value.
• Non-financial documents: Documents showing no financial transaction or transfer of property, like personal diaries or notes.
• Identity documents: While forgery of identity documents like a passport, driver's licence, or voter ID card is illegal, they do not fall under the specific provisions of Section 467.
• Academic certificates: The forging of educational certificates, degrees, or diplomas, though illegal, is not covered under Section 467.
• Commercial agreements: General commercial contracts or agreements that don't include the transfer of valuable securities, wills or financial authorities.
• Private contracts: Agreements between private individuals not involving the sale of valuable securities or property.
• Receipts for non-movable property: Receipts for money due on account of services rendered or for goods sold that do not comprise movable property or valuable security.

Practical Examples Illustrating IPC Section 467

Section 467 of the IPC talks about the forgery of valuable security, a will, and other important documents. Let me illustrate this section with some practical illustrations:

Illustration 1: Forgery of a will

‘A’ forges a will of his deceased father making himself the beneficiary of the will and, hence, taking over the ownership of the estates of his deceased father.

• Forged document: Will
• Intended benefit: Ownership over the estates of his deceased father
• Punishment: Imprisonment for life/imprisonment up to 10 years and with a fine

Illustration 2: Forgery of a property deed

‘B’ creates a fake deed showing that he is the bona fide owner of a place that he is selling.

• Forged document: Deed of property
• Intended benefit: Selling the property by using a forged document
• Punishment: Imprisonment for life/imprisonment up to 10 years and with a fine

Illustration 3: Forgery of Share Certificates

‘C’ to raise money, forges various share certificates in his own name. Later on, these certificates are sold by him to different persons to the extent of lakhs of rupees.

• Forged document: Share certificates
• Intended benefit: Raising money for himself
• Punishment: Imprisonment for life/imprisonment up to 10 years and with a fine

Illustration 4: Forgery of receipt of payment

‘D’ forges a receipt of payment displaying that he has paid for a consignment of goods that in reality, he never paid for. He forged the receipt of payment for taking the delivery of the goods.

• Forged document: Receipt of payments
• Intended benefit: Without paying for the goods, taking their delivery
• Punishment: Imprisonment for life/imprisonment up to 10 years and with a fine

Illustration 5: Forgery of Bank Guarantee

‘E’ to secure a business contract, forged a bank guarantee displaying that he has the financial ability to perform the contract.

• Forged document: Bank guarantee
• Intended benefit: Securing a financial contract
• Punishment: Imprisonment for life/imprisonment up to 10 years and with a fine

Illustration 6: Forgery of papers granting authority to adopt

‘F’ to take an adoption, forged a paper granting himself the authority to adopt a child.

• Forged document: Papers granting authority to adopt
• Intended benefit: Claimed to be an adoptive parent
• Punishment: Imprisonment for life/imprisonment up to 10 years and with a fine

These cases present examples of how the making of many valuable papers and securities falls within the purview of Section 467 of the IPC, and the serious penalties that can be given therefore.

Penalties and punishments under IPC Section 467

Section 467 provides the following punishments for the forgery of the above-mentioned documents:

• Imprisonment for life, or
• Imprisonment for either description (simple or rigorous) for a term which may extend to ten years;
• Payment of fine along with the sentence of imprisonment.

Notable case laws related to IPC Section 467

In the case of Calcutta Singh vs. The State (1977), the accused falsely identified a person as a deponent before the Oaths Commissioner. He said that the deponent had affixed his impression on the document. It was apparent that the said document would not have become an affidavit without the identification of the deponent by the accused. The Punjab and Haryana High Court held that the accused (abettor) was present at the time of the commission of the offence, i.e., impersonation, therefore, he was held to be guilty under Section 467 of IPC read with Section 114 of the Act.

The Orissa High Court in the case of Adithela Immanuel Raju & Anr. vs State of Orissa (1991) held that a bank draft constitutes a security for Section 467 of IPC. Therefore, the bank manager who signed a forged draft is guilty of the offence under Section 467 of IPC.

However, the Punjab and Haryana High Court in the case of State of Haryana vs Parmanand Son of Rati Ram (1994), in the accusation of embezzlement by forging entries in records, held that the conviction of the accused only on the statement of the sole witness in not justified, where neither the signature nor the handwriting of the accused was proved by the expert evidence beyond the shadow on doubt.

In the case of State of Punjab vs Baj Singh (1994), the Punjab and Haryana High Court held the accused liable under Section 467 for the issuance of cheques to withdraw money for official purposes while obtaining the signature of the signing officer under the same pretence. The Court held that the accused was acting under the capacity of a public servant and by forging the cheques and using them as genuine ones, he had committed a criminal breach of trust.

In the case of Joginder Pal Dhiman vs Union of India (2001), the appellant was employed as a branch manager with a bank. He changed the face value of three fixed deposit receipts belonging to him and his sons. Subsequently, he issued demand drafts in his and his wife’s name without depositing any amount to the bank. He subsequently withdrew the entire amount from their accounts which caused a wrongful loss to the Bank. But on being detected, the entire amount involved in both cases was deposited by the appellant. The Himachal Pradesh High Court, therefore, considered these circumstances and while confirming his conviction under Section 467 of IPC reduced his sentence to one year.

Recent changes

There have been no recent amendments in Section 467. The only amendment incorporated in the Section was through the Amendment Act of 26 of 1955. Vide this amendment, the punishment of “ transportation for life” was converted into “ imprisonment for life”.

Implications and Importance

• Deterrent effect: The strict penalties provided under Section 467 are undoubtedly an extremely strong deterrent to the forging of valuable documents. The possibility of life imprisonment underscores the gravity of the offence.
• Protection of legal and financial systems: By criminalising the forgery of valuable securities, wills, and other documents relating to these, Section 467 protects the integrity of financial transactions and the execution of wills. No wrongdoer should be allowed to profit from such deceitful practices against the legal or financial systems.
• Confidence in legal documents: The provision of the law enhances public confidence in legal and financial documents. Since forgery is severely punished, people and organizations can have confidence in the authenticity of documents that govern their financial and property dealings.

Problems in enforcement

• Proof of intent to defraud: It is always seen that one of the primary deficiencies in proving a case under Section 467 is the inability to prove the intent to deceive. The prosecution has to prove that the accused had the deliberate intention to defraud beyond a reasonable doubt.
• Complicated evidence: Most forgery cases involve minute details and require specialised knowledge to prove whether any document is genuine or forged; these complexities are sometimes reflected in the investigation and trial proceedings.
• Improved technology: Forgery has become more sophisticated with the advent of advanced digital tools; this crime eludes detection and proof by the investigating agencies.

Summary

Section 467 of IPC has specified that certain forgery of documents of a high valuation or those which have legal importance will attract very stringent punishment. This includes valuable security, will, authority to adopt, and documents authorising financial transactions or receipts for money or property. The offender will be awarded life imprisonment or imprisonment of either description up to ten years, in addition to fines. It tries to avert forgery, which might render the financial and other legal documents unreliable for trust and reliability in any transaction or legal process.

Essential facts and points in a quick-read format

• As per Schedule 1 of the Code of Criminal Procedure, 1973, an offence under Section 467 of IPC is non-cognizable, i.e., a police officer has no authority to arrest without a warrant
• As per Schedule 1 of the Code of Criminal Procedure, 1973, an offence under Section 467 of IPC is bailable, i.e., the accused has a right to bail.
• As per Schedule 1 of the Code of Criminal Procedure, 1973, an offence under Section 467 of IPC is triable by a Magistrate of First Class.
• Section 320 of IPC, which provides a list of compoundable offences, does not incorporate Section 467, i.e., Section 467 of IPC is not compoundable.
• The person forging the documents must have the mens rea to deceive others.
• Not all the forged documents fall within the ambit of Section 467. Section 467 explicitly applies to the documents mentioned in the Section itself.