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Report No. 29

128. "Cheating" and delivery of goods, etc.-We considered carefully the question whether the offence in question is covered by section 415-420, Indian Penal Code. "Cheating", as defined in section 415, requires-

(a) deception of a person, plus

(b) fraudulently or dishonestly inducing the person so deceived to deliver any property etc.


(a) deception of a person, plus

(b) intentionally inducing the person so deceived to do or omit any thing which he would not do or omit if he were not deceived, and which act or omission causes, etc., damage or harm to that person in body, mind, reputation or property.

The section, thus, falls into two parts1. Under the first part, the act must be done fraudulently, etc., and must result in delivery, etc. Under the second part, there must be intentional inducement, etc., and the act or omission induced must cause damage or harm. Deception, is, however, common to both the parts.

1. Cf. Ramji v. Harshadrai, AIR 1960 Born 268.

129. Deception generally is "to lead into error by causing to believe what is false or to disbelieve what is true"1.

The following observations of Buckley J.2 as to the meaning of "deceive" are interesting:-

"To deceive is, I apprehend, to induce a man to believe that a thing is true which is false, and which the person practising the deceit knows or believes to be false. To defraud is to deprive by deceit: it is by deceit to induce a man to act to his injury. More tersely it may be put, that to deceive is by falsehood to induce a state of mind; to defraud is by deceit to induce a course of action."

(The aspect of likelihood of injury, as an ingredient of "intent to defraud", is not relevant for the present purpose)3.

1. See P.P. v. Vedantam, AIR 1952 Mad 183, para. 4 (Subba Rao J.)

2. London and Globe Finance Corporation Ltd. (in re:), (1903) 1 Ch 728 (732-733) approved in R. v. Wines, (1953) 2 All ER 1497 (1498) (Court of Criminal Appeal).

3. As to this, see

(i) R. N. Gooderson, "Prejudice as a test of intent to defraud", 1960 CLJ 199 ( 201).

(ii) Q.E. v. Abbas, ILR 25 Cal 512 (FB).

(iii) Q.E. v. Soshi Bhushan, 1898 ILR 15 All 210 (217).

Proposal to include certain Social and Economic Offences in the Indian Penal Code Back

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