Section 415 of the Indian Penal Code

Cheating is that offense which is understood even by a layman. Often people use the term ‘cheating’ whereby they mean something to be deceitful or fraudulent. Cheating is considered as a wrong act when done, even in some of the trivial issues. Section 415 of IPC (India Penal Code), 1860 defines ‘Cheating’ and this article would be discussing the legal definition and legal aspect of the offense of cheating.

Section 415 – Cheating

Cheating is defined under Chapter XVII which deals with ‘Offences against Property‘ under Section 415 as follows-

Cheating.—Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any proper­ty to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to “cheat”.

Explanation.—A dishonest concealment of facts is a deception within the meaning of this section.[1]

From the above-mentioned definition, some of the basic elements of cheating are as follows-

Fraudulently  

The act should either be fraudulent or dishonest to be termed as under the offense of cheating. The term ‘fraudulently’ is defined under Section 25 of the IPC.

“A person is said to do a thing fraudulently if he does that thing with intent to defraud but not otherwise.”[2]

Acting dishonestly

The intention of the wrongdoer in every criminal offense is of great importance. Therefore, in cheating, also the person who commits the offense should act dishonestly. The term ‘dishonesty’ is defined under Section 24 of the IPC.

“Whoever does anything with the intention of causing wrongful gain to one person or wrongful loss to another person, is said to do that thing “dishonestly”.[3]

Property

Section 415 comes under Chapter XVII, which makes the offense of Cheating that is committed against property.

Deceive

The accused must deceive the person in such a way that he is induced to deliver any property or gives consent to the accused to retain a property that he posses. Also, it is very important to note down here that the deception should be with a dishonest or fraudulent intention.[4]

All the elements of cheating specified under Section 415 should be connected to each other in order to make an offense of cheating.

As per the Supreme Court very clearly held that the crux of the offense of cheating is the intention of the person who induces the victim of his representation. The nature of the transaction is irrelevant, which would become decisive in discerning whether there was the commission of an offense or not.[5]

The Supreme Court in a case held that in order to convict a person under the offense of cheating there should be the pre-existing fraudulent or dishonest intention of the accused from the beginning whereas in case of breach of contract the dishonest intention is generally not present at the beginning of the agreement. [6]

Punishment of Cheating

Cheating is punishable under section 417, and the punishment for cheating is imprisonment up to 1 year or fine or both. [7]Imprisonment depends upon the cheating and quantum of the act. If the act is grave, imprisonment and fine, both can be awarded. Whereas, when the act committed is not grave imprisonment is generally not imposed.

Difference between Cheating and Fraud

The offense of cheating and fraud are almost similar, and therefore, sometimes there is confusion between the two. It is very important to know the differences between the two.

1. The offense of Cheating is mentioned under section 415-420 of the Indian Penal Code, 1860, whereas, fraud is mentioned under 421-424 of the Indian Penal Code, 1860.
2. Usually, cheating is committed to obtaining some advantage from a person. Fraud is committed to gain an advantage by another’s loss.
3. Fraud basically is confined to contract cases, but cheating has a wide ambit.

Conclusion

The offense of Cheating, which is very common, includes two main elements, that is deception and inducement. Sometimes cheating is confused with fraud or other civil or criminal offense, but it differs from all of them in one way or the other. Therefore, the conceptual understanding of the offense of cheating becomes very important. Apart from section 415, another section related to cheating are also important.

[1] Indian Penal Code, 1860, s. 415.

[2] Indian Penal Code,1860, s. 25.

[3] Indian Penal Code, 1860, s. 24.

[4] A. Pareed Pillai v State (1973) SC 326.

[5] Rajesh Bajaj v. NCT of Delhi and Ors. (1999) SC 1216.

[6] S.W. Palanitkar V. State of Bihar 2001(10) TMI 1150.

[7] Indian Penal Code, s. 417.

Procedure after FIR is lodged and FIR cancellation procedure

Introduction

The first information report is a written report prepared by the police department of the respective police station where the crime  (Cognizable offense) has occurred. This is an essential practice which gives a kickstart to a criminal proceeding in a court. It is prevalent in countries like India, Bangladesh, Pakistan, etc. An FIR is generally logged by the victim of a cognizable offense. However, in the cases where the victim is deceased or is in such a condition as unable to lodge an FIR, someone on his behalf can also lodge an FIR either orally or in writing to the police. FIR is defined under Section 154 of Criminal Procedure Code, 1973.   As the name itself suggests, An Fir must contain all the information which the victim is possessing about the cognizable offense. Also, Fir must be read to the person giving information or lodging complaint to the police and must contain his signature. This prevents cases of fraud FIRs lodged by the police officials if the complainant is illiterate.

After lodging an FIR

Once the FIR is lodged, the police can start the investigation work. The investigation includes collecting evidence, questioning witnesses, inspecting the crime scene, forensic testing, recording statements of the witnesses. It is always said that, after experiencing a cognizable offense, the first thing a victim should do, is to lodge an FIR. The reason for the same is attributed to the fact that, if there will be a considerable amount of time duration between the commission of a crime and lodging an FIR, this will give an opportunity to the offender to manipulate the shreds of evidence, eye-witness or any such material which can turn the judgment of the bench. For example, in rape cases, certain medical tests are to be conducted within a span of 2 days. Otherwise, there will be no evidence left in the victim’s body.

Once the stage of investigation is completed, the police may form a Charge Sheet often called as Challan and record their findings in it. If it is deemed that there is enough proof in the charge sheet, the case reaches the court.

Also, if after the completion of the investigation, the police concludes that there is not enough evidence, so as to establish the crime, they may close the case. Reason for closing the case must be backed by a rational in the competent court of jurisdiction.

When authorities refuse to lodge an FIR

Remember, that no police station can deny for lodging an FIR and they have to do this free of cost.

1. You can contact Superintendent of Police or any other high officials and bring to their notice the complaint filed by you.
2. You can contact such high officials by sending the complaint to them in writing. If they are satisfied by your complaint, they may order for the investigation of the case of may investigate the case himself.
3. A private complaint can be lodged in the court of competent jurisdiction.
4. You approach the authorities such as the State Human Rights Commission or the National Human Rights Commission.

Filing a Criminal Complaint accompanied by Vakalatnama and Court Fees

This is a petition which is submitted by the complainant authorizing an advocate to plead the case. This contains written allegations of the complainant, the summary of the happening of offense and the complaint prays for the relief he seeks for the same.

Criminal Complaint must be accompanied by a Vakalatnama. It gives the advocate (Who will be representing you in the court) the authorization to fight for justice, appear on his behalf, and handle all the court procedure. The lawyer who has signed the Vakalatnama is bonded by all the duties of an advocate, such as Attorney-Client Privilege. All such terms and conditions are explicitly mentioned in Vakalatnama.

Plaints are also required to be accompanied by court fees to be paid to the court. The amount of court fees is governed by the rules an regulations embodied in the Court Fees Stamp Act. Court fees are usually a nominal percentage to the suit value, and it differs from case to case.

Cancellation of FIR

Once the Fir is registered, FIR cannot be canceled. Even when the complainants urge for the same. It can be disposed of only as per the manner prescribed under the Criminal Procedure Code.

FIR is disposed of in the following circumstances-

1. When the Offender cannot be traced even after making all possible efforts, and there are no changes for finding him in the future.
2. When the Complainant has registered a false complaint.
3. The accused person dies before filing the charge sheet against him in the court.
4. When the complaint withdraws the case or requests the court to refer the case to Lok Adalat/ National Lok Adalat. So that the case can have a lead towards settlement.

In addition to the aforementioned circumstances, the government has the power to withdraw prosecution of a criminal case against him in the court. This power is conferred under Section 321 of the Criminal Procedure Code.

Conclusion

All citizens should get to know about their rights to filing FIRs. At the same time, they must be aware of the steps that they can take if the police refuse to register their complaints. In some cases, it is best to file a complaint petition before the judicial magistrate instead of registering an FIR.