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Report No. 156

Clause 10

12.05. The existing section 25 defines the expression "fraudulently" - a person is said to do a thing fraudulently if he does that thing with intent to defraud but not otherwise. The expression "fraudulently" occurs in few sections, namely, 206, 207, 208, 242, 243, 246, 247, 252, 253, 261, 262, 263 and sections 421 to 424. The existing section 23 explains the terms "wrongful gains" and "wrongful loss". Section 24 says that a person does a thing dishonestly if he does it with the intention of causing wrongful gain to one person or wrongful loss to another person.

These definitions are in clearer terms. But the same cannot be said about the definition of "fraudulently". The courts, however, observed that to attract the definition, there must be some advantage on the one side with the corresponding loss on the other. The Supreme Court in Dr. S. Dutt v. State of U.P., 11966 (1) SCR 493] observed that the words "with intent to defraud" in section 25 indicate not a bare intent to deceive but an intent to cause a person to act or omit to act, as a result of deception played upon him, to his advantage."

Having examined various views, the Law Commission recommended the change in the definition, so that the meaning can be brought out in clearer terms. The amendments suggested in the Bill serve the purpose.



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