Cheating

Definition of Cheating:

Cheating is defined as the act of deceiving someone in a way that causes them to perform an action or omit something they would not do if they were not deceived. This deception typically results in harm to the person, such as damage to their body, mind, reputation, or property.

Explanation:

A dishonest concealment of facts is considered a form of deception under this section.

Illustrations of Cheating:

  • Illustration (a): A falsely pretends to be in the Civil Service and deceives Z into providing goods on credit, intending not to pay for them. A cheats.
  • Illustration (b): A puts a counterfeit mark on an article and deceives Z into believing it was made by a renowned manufacturer, leading Z to buy it. A cheats.
  • Illustration (c): A shows Z a false sample of an article, causing Z to believe the article matches the sample, and induces them to buy it. A cheats.
  • Illustration (d): A tenders a bill of exchange from a house without funds, expecting the bill to be dishonored, and deceives Z to deliver the article without payment. A cheats.
  • Illustration (e): A pledges non-diamond articles as diamonds to deceive Z into lending money. A cheats.
  • Illustration (f): A deceives Z into believing they intend to repay a loan, but A does not intend to do so. A cheats.
  • Illustration (g): A deceives Z into believing they will deliver a certain quantity of indigo plants but never intends to. A cheats unless A has a genuine intention to deliver the plants but later fails to do so.
  • Illustration (h): A deceives Z into believing they have fulfilled their part of a contract, leading Z to make a payment. A cheats.
  • Illustration (i): A sells property to B, then sells it to Z without disclosing the earlier sale, taking payment from Z. A cheats.

Legal Consequences:

  1. Section 1: Whoever cheats will face imprisonment for up to three years, or a fine, or both.
  2. Section 2: If the cheating causes wrongful loss to a person whose interests were protected by law or contract, the punishment can be up to five years in prison, a fine, or both.
  3. Section 3: Cheating that dishonestly induces a person to deliver property or alter a valuable security can result in up to seven years imprisonment and a fine.

Example:

Vijay makes a deal with Rakesh to supply him a Swiss-made luxury watch for Rs. 1,00,000/-. Instead, Vijay delivers a cheap replica, thereby deceiving Rakesh. Vijay is guilty of cheating.

Key Points to Remember:

  • Deception: Deceiving the victim through false representations, concealment of facts, or other fraudulent methods.
  • Inducement: The victim is misled into performing an act, like transferring property, signing a contract, or making a payment, that they would not have otherwise done.
  • Harm: The cheating must result in harm to the victim's body, mind, reputation, or property, including financial loss, emotional distress, or damage to social standing.
  • Fraudulent or Dishonest Intent: The offender must have an intention to gain unfairly or cause loss to the victim.

Offence Details:

Offence Punishment Cognizable or Non-Cognizable Bailable or Non-Bailable By What Court Triable
Cheating Imprisonment up to 3 years, fine, or both Non-Cognizable Bailable Any Magistrate
Cheating a person whose interest the offender was bound to protect Imprisonment up to 5 years, fine, or both Non-Cognizable Bailable Any Magistrate
Cheating and dishonestly inducing delivery of property Imprisonment up to 7 years and fine Cognizable Non-Bailable Magistrate of the First Class

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