Indian Penal Code (IPC)

Section 420. Cheating and dishonestly inducing delivery of property

Whoever cheats and thereby dishonestly induces the person deceived any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.


Punishment Imprisonment for 7 years and fine Cognizable Non-bailA­able Triable by Magistrate of the first class Compoundable by the person cheated with the permission of the court.



(i) Even if the allegation made in the complaint are accepted to be true and correct, the appellants cannot be said to have committed any offence of cheating.

Since the appellants were not in picture at all the time when the complainant alleges to have spent money in improving the bottling plant, neither any guilty intention can be attributed to them nor there can possibly be any intention on their part to deceive complainant; Ajay Mitra v. State of Madhya Pradesh, AIR 2003 SC 1069.

(ii) The offence of cheating is established when the accused thereby induced that person to deliver any property or to do or to omit to do something which he would otherwise not have done or omitted; Mahadeo Prasad v. State of Bengal, AIR 1954 SC 724.