Code: Section 318 BNS
Definition and Punishment for Cheating
(1) 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.
Illustrations.
(a) A, by falsely pretending to be in the Civil Service, intentionally deceives Z, and
thus dishonestly induces Z to let him have on credit goods for which he does not mean to
pay. A cheats.
(b) A, by putting a counterfeit mark on an article, intentionally deceives Z into a
belief that this article was made by a certain celebrated manufacturer, and thus dishonestly
induces Z to buy and pay for the article. A cheats.
(c) A, by exhibiting to Z a false sample of an article intentionally deceives Z into
believing that the article corresponds with the sample, and thereby dishonestly induces Z to
buy and pay for the article. A cheats.
(d) A, by tendering in payment for an article a bill on a house with which A keeps no
money, and by which A expects that the bill will be dishonoured, intentionally deceives Z,
and thereby dishonestly induces Z to deliver the article, intending not to pay for it. A cheats.
(e) A, by pledging as diamonds articles which he knows are not diamonds, intentionally
deceives Z, and thereby dishonestly induces Z to lend money. A cheats.
(f) A intentionally deceives Z into a belief that A means to repay any money that Z
may lend to him and thereby dishonestly induces Z to lend him money, A not intending to
repay it. A cheats.
(g) A intentionally deceives Z into a belief that A means to deliver to Z a certain
quantity of indigo plant which he does not intend to deliver, and thereby dishonestly induces
Z to advance money upon the faith of such delivery. A cheats; but if A, at the time of
obtaining the money, intends to deliver the indigo plant, and afterwards breaks his contract
and does not deliver it, he does not cheat, but is liable only to a civil action for breach of
contract.
(h) A intentionally deceives Z into a belief that A has performed A’s part of a contract
made with Z, which he has not performed, and thereby dishonestly induces Z to pay money.
A cheats.
(i) A sells and conveys an estate to B. A, knowing that in consequence of such sale
he has no right to the property, sells or mortgages the same to Z, without disclosing the fact
of the previous sale and conveyance to B, and receives the purchase or mortgage money
from Z. A cheats.
(2) Whoever cheats shall be punished with imprisonment of either description for a
term which may extend to three years, or with fine, or with both.
(3) Whoever cheats with the knowledge that he is likely thereby to cause wrongful
loss to a person whose interest in the transaction to which the cheating relates, he was
bound, either by law, or by a legal contract, to protect, shall be punished with imprisonment
of either description for a term which may extend to five years, or with fine, or with both.
(4) 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 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.
Explanation Section 318 BNS
Section 318 of the BNS defines cheating broadly, covering a range of deceptive actions. The law focuses on both the act of deception and its consequences. Importantly, the section distinguishes between general cheating and more severe cases involving legal obligations or valuable securities.
For instance, the law recognizes that not all dishonest actions qualify as cheating. It specifically targets situations where deception results in tangible harm, whether financial, reputational, or emotional.
Moreover, the section introduces varying degrees of punishment based on the severity of the deception. This ensures that the legal consequences reflect the seriousness of the offense.
Illustrations
Example 1: False Representation in Employment
A falsely claims to be a government officer and convinces B to pay a large sum for a “job placement.” Here, A has induced B to part with money under false pretenses, constituting cheating.
Example 2: Fake Product Sale
Selling a counterfeit product as genuine can lead to charges under Section 318. For example, A sells Z a branded watch, but it turns out to be a fake.
Example 3: Concealment of Facts
A sells a property to B without disclosing an ongoing legal dispute. This concealment leads to financial loss for B, amounting to cheating under Section 318.
Example 4: Cheating Involving Valuable Securities
A tricks Z into signing a blank cheque, then fills in the amount to his benefit. This act falls under Section 318(4), as it involves inducing Z to deliver a valuable security.
Common Questions and Answers on Section 318 BNS
1. What does “cheating” mean under Section 318?
- Answer: Cheating refers to deceiving someone to make them part with property, consent to retain property, or perform an act they wouldn’t have done otherwise.
2. What are the punishments for cheating under Section 318?
- Answer: Punishments vary based on the offense’s severity:
- Up to 3 years of imprisonment, a fine, or both for general cheating.
- Up to 5 years if the cheating causes wrongful loss to someone whose interests the offender was legally bound to protect.
- Up to 7 years and fines for cheating involving valuable securities.
3. Does hiding facts count as cheating?
- Answer: Yes, dishonest concealment of facts is considered cheating under Section 318.
4. Can breaching a contract be considered cheating?
- Answer: Not unless it involves fraudulent misrepresentation or deceptive practices beyond simple contractual breaches.
5. How does cheating differ from fraud?
- Answer: While both involve deception, fraud encompasses a broader range of dishonest acts, while cheating specifically involves inducing someone to part with property or consent to something through deceit.
Conclusion
Section 318 of the BNS effectively addresses the issue of cheating, offering clear definitions and a range of punishments based on the crime’s nature. The law protects individuals and businesses from deceptive practices, promoting fairness in personal and commercial transactions.
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