Supreme Court Judgments on Cheating with Proprietary Element
Sun, 09/12/2010 - 10:15 — LIG Reporter
Section 420 of the Indian Penal Code pertains to the offence of cheating and dishonestly inducing delivery of property that can be converted to valuable security. Supreme Court judgments have established the importance of distinguishing between cheating without proprietary element and cheating with proprietary element. This is because cheating without proprietary element attracts section 417 of IPC, not as 420.
To attract section 420, the essential elements to attract this offence are as follows:
- Deceit, dishonest or fraudulent intention by representation in word, written form or action
- Inducing another person by any of the above mentioned means to deliver property
- Causing wrongful loss to the cheated person and wrongful gain to the accused.
Supreme Court Judgments: Interpretation of “Property” under Section 420
The difficulty faced by courts is to interpret what constitutes ‘property’ so as to attract section 420. For example, can a forged certificate be interpreted as ‘property’? Can Railway receipts be interpreted as ‘property’? In most court judgments, property has not been interpreted as restricted to movable or immovable property. Courts have held that the following items constitute property so as to attract section 420:
- Import licenses
- Hire purchase agreement
- Written certificate or degree certificate
- Admission card to sit for an examination
- Cheques
- Receipts
Supreme Court Judgments: Guilty or Not under Section 420
In the following instances, court judgments have held that the main item in dispute can be interpreted as ‘property’ so as to attract the offence of cheating under section 420:
- Where a Homeopathy College was set up in India by a Burmese citizen, claiming that his college had necessary registration and accreditation as per Indian regulations, but it turned out to be bogus, the court held that it attracted the offence of section 420.
- Where a supplier consigned a small quantity of goods to be delivered to the Railways but tampered with the Railway receipt to show larger consignments had been delivered, it was held that the accused was guilty under section 420.
- Where a student writing the IAS exam indicated that he belonged to Scheduled caste and got an appointment in the cadre, the court held the accused guilty of fraudulent representation as per section 420, IPC.
However, where there was discrepancy in the price of a pair of binoculars ordered by the ‘cheated person,’ the court held that there was no offence constituted under section 420, IPC. The evidence of fraudulent intention on the part of the accused is an essential ingredient to attract section 420, IPC.
When a person is charged under section 420, IPC, it is a cognizable, non bailable offence that is triable by a First Class Magistrate.
Comments
JAI HIND
How can we give online information? About crime or corruption. For news channels or police, vigilance, anti corruption cells. N.G.O. Who work against corruption? Mostly I email the information or story .but later I checked or know about action against victims the result is zero. Some times I am feeling UN secure for this work. Every week I email 2-3 stories to news channels, anti crime cells or others. This I do only make a pressure against victims. . I don’t want publicity or any type of gift, money other benefits. If any channel or N.G.O. Have time just give me knowledge how we fight against crime or corruption. How can I work on line as a free reporter? Awaited for your reply .hope we make a team fight against corruption.
Thanks
With regards
Rana Ajai Singh
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