Question

Under Section 415 and Section 420 of the IPC, what is the essential distinction between "cheating" (Section 415) and "cheating and dishonestly inducing delivery of property" (Section 420)?

A Section 415 requires financial loss; Section 420 does not require any loss Correct Answer Incorrect Answer
B Section 415 is the definition of cheating; Section 420 is an aggravated form where the deceived person is dishonestly induced to deliver property, or alter/destroy a valuable security Correct Answer Incorrect Answer
C Section 415 applies to civil fraud; Section 420 applies to criminal fraud only Correct Answer Incorrect Answer
D Section 415 requires prior criminal record; Section 420 applies to first-time offenders Correct Answer Incorrect Answer

Solution

Section 415 IPC defines cheating as deceiving a person, fraudulently or dishonestly inducing them to deliver property, or to consent to retaining property, or intentionally inducing them to do or omit to do something causing damage or harm to their body, mind, reputation, or property. Section 420, on the other hand, is a specific and aggravated form of cheating where the cheated person is dishonestly induced to deliver property to any person, or to make, alter, or destroy any valuable security or anything signed and sealed which may be converted into a valuable security. The punishment under Section 415 is a fine and/or imprisonment up to 1 year for simple cheating under Sections 417-418; however, Section 420 attracts a much higher punishment of up to 7 years' imprisonment along with a fine, owing to the greater gravity of harm involved. The essential ingredients of Section 420 are: (i) deception by the accused, (ii) fraudulent or dishonest inducement, and (iii) delivery of property or alteration/destruction of a valuable security as a result of that deception.

Practice Next
ask-question