Section 420 of the Indian Penal Code, 1860

Profile of the Author: Arpita Prakash is a 2nd year Law student pursuing B.A. LL.B (Hons) from University Law College, Gauhati University.

Introduction:

We hear this number 420 or ‘Char Sau bees’ very often in India, either to label someone as mischievous or a swindler or to define an act that’s mischievous in simple words. Is it legally as simple as it sounds informal?

On a daily note, India reports quite several cases under Section 420. Before understanding the whole of section 420 of IPC let’s understand some important parts of it.

Cheating under the Indian Penal Code 

The term ‘Cheating’ brings different scenarios and stories in our minds, some can be silly whereas some can be serious. But legally it becomes more complex and serious. 

Section 415 under the Indian Penal Code defines ‘Cheating’ as “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". 

Example: ‘A’ asks ‘B’ for some money. ‘A’ intentionally deceives ‘B’ into believing that ‘A’ means to repay any money that B may lend to him and thereby dishonestly induces ‘B’ to lend him money. Since ‘A’ is not intending to repay it, ‘A’ has committed the crime of cheating. 

Section 416 in the Indian Penal Code states ‘Cheating’ by personation as “A person is said to “cheat by personation” if he cheats by pretending to be some other person, or by knowingly substituting one person for another, or representing that he or any other person is a person other than he or such other person really is”.

Explanation: The offence is committed whether the individual personated is a real or imaginary person.

Example: ‘A’ cheats by pretending to be a certain rich banker of the same name. ‘A’ cheats by personation.

For better understanding, we can take an example of a famous Bollywood movie “Chachi 420” wherein the lead character in the movie pretended to be some other person and thus, the lead character cheats by personation.

Dishonesty under Indian Penal Code

Under Section 24 of the Indian Penal Code, ‘Dishonesty’ is defined as "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”.

Section 420 under Indian Penal Code, 1860:

Now that we are familiar with ‘Cheating’ and ‘Dishonesty’, it will be easier to understand how it is related to Section 420 in the Indian Penal Code, 1860.

Section 420 in the India Penal Code states “Cheating and dishonestly inducing delivery of property i.e. Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person or to make, alter or destroy the whole or any part of 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.”

An offence under section 420 IPC is cognizable and non-bailable.

Applicability of Section 420 under Indian Penal Code, 1860:

Section 420 of Indian Penal Code is applicable, only if the following elements are present in a case-

1. Cheating
2. Dishonest inducement to deliver any property to any person or to make, alter or destroy the whole or any part of the property which is capable of being converted into a valuable security
3. Mens Rea of the accused.

-Mens rea is a legal term that is used to define the mental state of a person while committing a crime, and that should be intentional. It can refer to a general intent to break the law or a specific prearranged plan to commit a particular offence. A criminal prosecutor must show beyond any reasonable doubt to convict an accused person that the suspect actively and knowingly contributed to a crime that affected another person or their property.

Relevant Case Law:

Rajesh I.V. vs S.H.O. Neleshwar Police Station on 22 January 2007

In this case, the petitioner has come to this Court with a prayer that the F.I.R. registered against him under Section 420 I.P.C. may be quashed. Continuance of the investigation, in this case, works out unnecessary prejudice and hardship to the petitioner. The interests of justice demand that the proceedings must be quashed. There was essentially a civil dispute between the defacto complainant/2nd respondent and the petitioner herein. The complaint was filed alleging offence under Section 420 I.P.C. In the meantime, the parties settled their disputes. The 2nd respondent, who has entered an appearance, confirms that the matter has been settled between the parties. A joint application by the petitioner and the 2nd respondent duly countersigned by their counsel is also filed.

Having considered all the relevant inputs, (R. BASANT) Judge was satisfied that this is a fit case where powers under Section 482 Cr.P.C. can be invoked as requested by all concerned and the investigation in the crime can be quashed.

This Crl.M.C. was hence allowed. Crime No.250 of 2006 of Nileswer Police Station under Section 420 I.P.C. was hereby quashed. [1]

Difference between Fraud and Cheating:

The basic difference between fraud and cheating is that, Cheating is merely a Collective offence for cheating and fraud. Whereas, fraud is an act or omission, which is intended to cause wrongful gain to one person and wrongful loss to the other, either by way of concealment of facts or otherwise. The difference between them lies in their scope.  Cheating is described under Section 415 and implications of fraud are found under Section 421,422,423 and 424 of IPC. [2]

Conclusion

Through this article, it becomes very clear that Section 420 of the Indian Penal Code talks about the offence which is committed by the person who cheats another person and thereby induces the deceived to deliver any property. This provision provides punishment for the same [3], considering the aforementioned three elements i.e. cheating, dishonesty, and mens rea.

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FAQs

Q. Discuss a brief history of IPC`s drafting.

Ans. The Indian Penal Code was drafted by a commission headed by Lord TB Macaulay keeping in mind the core principles of British law. Provisions of the French Penal Code and the Louisiana Code were also studied during the drafting process. The Indian Penal Code has seen several amendments to it since its first version in 1860.

References

[1] https://www.casemine.com/judgement/in/56095121e4b0149711287848

[2] https://www.pathlegal.in/Difference-between-fraud-and-cheating-under-IPC-blog-1176082

[3] https://www.lawyered.in/legal-disrupt/articles/section-420-ipc-everything-you-need-know/