Dr.

RAM MANOHAR LOHIYA NATIONAL LAW

UNIVERSITY

(SESSION 2022-2023)

Subject- IPC-II
Topic- Cheating

SUBMITTED BY- SUBMITTED TO-

MAYANK SINGH Dr. MALAY PANDEY

ENROLLMENT NO. 200101086 Dr. K.A. PANDEY

AKANKSHA YADAV PROFESSOR (LAW)

ENROLLMENT NO. 200101165 RMLNLU

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BA LLB (Hons) 5th SEMESTER

TABLE OF CONTENTS

ACKNOWLEDGEMENT……………………………………..3

INTRODUCTION………………………………………………4

INGREDIENTS OF CHEATING ……………………...……..5

PUNISHMENT FOR CHEATING……………………………7

DISTINCTION………………………….…….………………..8

CONCLUSION………………………………………………..9

BIBLIOGRAPHY…………………………….………………..10

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 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without
the kind support and help of many individuals. I would like to extend my sincere thanks
to all of them.

I am highly indebted to Dr. K.A. PANDEY & Dr. MALAY PANDEYfor his guidance
and constant supervision as well as for providing necessary information regarding the
project & for his support in completing the project.

I would like to express my gratitude towards my parents and members of Madhu Limaye
Library for their kind co-operation and encouragement, which helped me in completion
of this project.

My thanks and appreciations go to my colleague in developing the project and people

who have willingly helped me out with their abilities.

I welcome any criticism and suggestions by the people who go through it, for the
improvement of my future projects.

Mayank Singh
Akanksha Yadav

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 INTRODUCTION

The Indian Penal Code (IPC) is the main criminal code of India. It is a comprehensive code
intended to cover all substantive aspects of criminal law. The code was drafted in 1860 on the
recommendations of first law commission of India established in 1834 under the Charter Act
of 1833 under the Chairmanship of Thomas Babington Macaulay. It came into force in
British India during the early British Raj period in 1862. However, it did not apply
automatically in the Princely states, which had their own courts and legal systems until the
1940s. The Code has since been amended several times and is now supplemented by other
criminal provisions.

Cheating is considered as a criminal offence under the Indian Penal Code. It is done in order
to gain profit or an advantage from another person by using some deceitful means. The
person who deceives another knows for the fact that it would place the other person in an
unfair situation. Cheating as an offence can be made punishable under Section 420 of the
IPC. Scope of Section 415 Cheating is defined under Section 415 of the Indian Penal Code as
whoever fraudulently or dishonestly deceives a person in order to induce that person to
deliver a property to any person or to consent to retain any property. If a person intentionally
induces a person to do or omit to do any act which he would not have done if he was not
deceived to do so and the act has caused harm to that person in body, mind, reputation or
property, then the person who fraudulently, dishonestly or intentionally induced the other
person is said to cheat. Any dishonest concealment of facts which can deceive a person to do
an act which he would not have done otherwise is also cheating within the meaning of this
section.

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 INGREDIENTS OF CHEATING

The following are the essentials for the offence of cheating:

1. The accused must ‘deceive any person’

2. After deceiving he must-

(a). ‘Fraudulently or dishonestly induce the person to deliver any property to any
person or; to consent that any person shall retain any property’

(b). ‘Intentionally induce the person, to do or omit to do anything which he would

not do or omit if he were not so deceived’

3. Such ‘act or omission’, to that person in ‘body, mind, reputation or property’-

(a). Causes damage or;

(b). Is likely to cause damage or;

(c). Causes harm or;

(d). Is likely to cause harm

The deception in this section can be done in two ways firstly, by fraudulently or dishonestly
inducing the person and secondly, by intentionally inducing that person so deceived. It is
not enough if the person deceived is only induced but also should be fulfilling the other
essentials laid down in the section for the conviction of the accused. 1 The inducement may
be of any of the two kinds and the deception is common in both the parts.

Deception

One of the important ingredients which constitute the offence of cheating is deception.
Deception can be done to induce the other person to either deliver or retain the property or to
commit an act or omission. Deceiving means to make a person believe what is false to be true
or to make a person disbelieve what is true to be false by using words or by conduct.

1 Divender Kumar Singla v. Baldev Krishna Singla, AIR 2004 SC

3084 2 (1995) Cr LJ 1810 (Del)

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In the case of Swami Dhirendra Brahmachari v. Shailendar Bhushan2, although this was a
case dealing with a petition to quash the FIR filed by the complainants against the petitioners

for cheating, the court observed the actions of the petitioners to claim that the training
programme offered by them to be a government initiative and act of charging the caution
amount of Rs. 1000 for each member, were fulfilling the ingredients of section 415 which
was charged by the police officials. Hence the court held that deception is an act of making
any person believe something which is not true or making one not to believe something
which is true. Thus, dismissed the petition.

Deception is essential for the charge of cheating, therefore in the absence of the same or on
the occasion of lack of evidence, cheating cannot be established. Further, the deception must
be practised prior to the delivery of property.

Inducement

When one person uses deceitful practices to convince the other person to agree on anything
which is harmful to that person, it is known as Inducement. It generally occurs when two
parties enter into a contract and a party uses fraudulent inducement to gain advantage on the
other party. The fraudulent inducement can be done when a person persuades another by
giving false information about a thing to be beneficial for that person but in reality, it is not.
Fraudulent inducement differs from fraud as inducement needs a person to convince the other
person for the object which he wants to achieve and the latter needs the person to commit a
deceitful conduct by himself for the object which he wants to achieve.

In the case of Shri Bhagwan Samardha Sreepadha Vallabha Venkata Vishwanandha Maharaj
v. State of Andhra Pradesh2, the accused claimed to possess divine powers. He induced the
perpetrator that he can treat the dumbness of his girl child and looted money.

The court held that the accused represented that he possessed divine powers which deceived
the victim and by promising to treat the dumbness of a girl with divine powers was induced
to receive money from the victim who responded to such inducement is an act amounting to
the offence of cheating.

2 AIR 1999 SC 2332

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 PUNISHMENT FOR CHEATING

Punishment for cheating as envisaged under section 415 IPC is provided under section 417
and the section provides for imprisonment of either description for a term which may extend
to one year or with fine or with both. While the offence under this section is Non-cognizable
and bailable.

While punishment for the offence of cheating by personation as provided under section 416 is
provided under section 419, which provides for imprisonment of either description for a term
which may extend to three years or with fine or with both. An offence under this section is
cognizable and bailable.

Punishment for section 420 which deals with cheating and dishonestly inducing the delivery
of property extends to imprisonment up to 7 years and fine. The offence is cognizable and
non-bailable which shows the gravity of the crime.

State vs Ramesh Chandu Sharma3

In this case, the accused was charged with cheating bank A by encashing cheque through
bank B by opening an account with it in a fictitious name. It was held that it was no cheating,
it is also not personation.

Rama Rao vs K4

The accused K.V Rama Rao was an overseer, had by his representation that he was k. Rama
Rao, an engineering graduate of Mysore University, induces the public service commission to
select him for a post in government service. It was held that all ingredients of section 416 are
fulfilled and is liable under section 419.

3 AIR 1996 SC 864

4 AIR 1960 AP 441

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The distinction between cheating, theft, criminal breach of trust/misappropriation

There is a very thin line of distinction between theft, cheating, criminal breach of trust. This
is because the nature of all these crimes is such that it becomes difficult and sometimes
confusing to determine as to an act falls within the ambit of which crime. However, there is
some distinction between the above crime which can be described as follows:

1. Theft: The intention is to take dishonestly a moveable property out of possession of

another person. So the crime relates to the moveable property only.

2. Criminal misappropriation: The intention is to dishonestly misappropriate or convert

to his use of any moveable property.
3. Cheating: It is fraudulently or dishonestly inducing the deceived person to deliver any
property.

❖ Theft: Moveable property is involved.

❖ Criminal misappropriation: The moveable property is involved.

❖ Cheating: It may be any property.

➢ Theft: The property is taken out of possession of another person.

➢ Criminal misappropriation: The offender is already in possession of the property.

➢ Cheating: The victim is induced to deliver the property.

It may be noted that like criminal breach of trust and misappropriation, there is wrongful gain
or loss in cheating. However, in cheating, dishonest intention starts with the very inception of
the transaction and in breach of trust, the person receives property legally but retain or
convert it unlawfully.

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 CONCLUSION

Cheating is considered as a criminal offence under the Indian Penal Code. It is done in order
to gain profit or an advantage from another person by using some deceitful means. The
person who deceives another knows for the fact that it would place the other person in an
unfair situation. Cheating as an offence can be made punishable under Section 420 of the
IPC. Cheating is an offence under IPC in which a person induces the other by deceiving the
person to do any act or to omit to do an act. The intention of the accused plays an important
part and is taken into consideration while deciding his liability. The two main elements that
have to be considered in order to constitute the offence is deception and inducement. The
intention to cheat on part of the accused at the time of making a false representation is needed
to be proved. It must be shown that a promise was made by the accused and he failed to keep
the promise and further, no effort was put in by him in order to keep the promise. Cheating is
done by a person to another by making him believe something to be true which actually is
not. Cheating affects a person’s body, reputation or property of which the person may be in
possession or ownership of. Cheating can be done by a person who is in a fiduciary
relationship, it affects the mind of the person who has been cheated. Cheating can be done by
a person by misrepresenting the facts or by using false evidence in order to deceive the other
party. The person who is deceived believes the representations made by the party deceiving
to be true and then it further miserably affects the person both mentally and physically.
Cheating can result in stress, tension, and affect a person’s mental health miserably. It can
even result in trust issues and make it difficult for the person who has been cheated on to trust
another person again. After being cheated on a person can experience low self-esteem and
loss in monetary form by loss of the property.

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 BIBLIOGRAPHY

Books:

• K.D. Gaur, “A Textbook on Indian Penal Code”

• S.N. Misra, “Indian Penal Code”
• P S A Pillai “Criminal Law”

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