Cheating and Dishonest or Deceiving a Delivery of Property - Section 420

Any person who cheats another person or amplifies dishonesty by a fake delivery of property or any other thing to a person, or tries to destroy the entire or any part of the property or any other valuable security, even tries to convert anything signed or measured, into valuable security or trying, to omit or force the person to do anything eventually harming or causing him loss by fraudulent means, this crimes fall under section 420 and is punished with imprisonment extending up to 7 years with fine.

The offense committed under section 420 of IPC is cognizable and falls under the category of non-bailable offense. It is tried in the magistrate court of the first class and therefore FIR or application under section 156(3) or private complaint under section 200 may be preferred. 

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How cheating can be proved?

The fact has to be proved based on the subsequent conduct as acts and omissions of the accused. We have to prove that there was an intention to deceive or cheat at the time of making the false or the misrepresentation. Therefore the entire Act and the omissions of the accused must be legibly set out right from the date of making the first representation till the filing of the complaint. It must be manifested that cheating is caused and there is a failure of promise. It also must be an exhibit that there was no effort from the accused in performing his promise. To appreciate the evidence on record to the test of a prudent man must be applied.

Ingredients: The offense of cheating is established when the following ingredients are in action when

1. The representation made by the accused was fake;

2. The accused knew that the representation was false at the very time when he made it;

3. The accused made the false representation with the dishonest intention of deceiving the person to whom it was made; and

4. The accused thereby included that person to deliver any property or to do or to omit to do something which he would otherwise not have done or omitted.

The punishment under the offense of section 420 is imprisonment for a term extending up to 7 years and also with a fine. 

The Essential Elements:

Cheating: Section 415 of IPC defines the term cheating. The ingredient cheating is mandatory in every offense committed under section 420 of IPC. Section 415 of IPC mentions that whoever in the intention of deceiving any person fraudulently or dishonestly induces another person to deliver any deceived any property or to consent that shall retain that deceived property also intentionally induces the person so deceived to do or committing him from doing something and for which it is likely to cause damage or harm the person mind, body, reputation, or property is termed as “cheat”. 

Dishonest intention: It is a well-sealed principle of law to hold a person guilty of the offense of cheating has to be shown that his intention was dishonest at the time of making a promise. Such a dishonest or deceiving intention cannot be inferred from the absolute fact that he could not subsequently fulfill the promise. Merely because a monetary document given a month late was not honored was not sufficient by it to infer dishonest intention at the initial stage by giving retrospective effect. Dishonor of a cheque did not give a rise to a criminal offense under section 420, IPC.

The basic ingredient of the offense under section 420, IPC would be cheatingly intending to cheat from the very inception. In other words, to hold a person guilty of the offense of cheating it has to be shown that his intention was dishonest at the time of making the promise and such dishonest intention cannot be inferred from the mere fact that he could not subsequently fulfill the promise.

Property- All things that can be measured in terms of money are defined as property. The particular property should be capable of being under the possession of a person and explicitly using the property for enjoyment or another purpose.

Fraudulently- The term “fraudulently” is defined under section 25 which says that a person committing fraud or acting fraudulently if he is having the intention to defraud but not otherwise.