The judgment established the importance of proving fraudulent or dishonest inducement for the offence of cheating under S.420 I.P.C and clarified the jurisdiction of the criminal court to decide the question of possession under S.517 Crl. P. C.

1. Criminal Appeal 346/59 and Criminal Revision Petition 321/59 arise out of an order passed by the Sub-Divisional Magistrate of Trivandrum in C. C. 22/59. Criminal Appeal 346/59 is filed by the State against the order of acquittal of the four respondents who had been charged along with another for an offence punishable under S.420 I. P. C. Criminal Revision Petition 321/59 is a petition filed earlier by the 1st informant pw.1 in the case for revising the order of the learned Magistrate challenging the order of acquittal of the accused and also the order regarding the disposal of the properties. Those two matters were hoard together and I propose to pass one common order.

2. The Sub-Inspector of Police, Puthenchantha had charged the four respondents who were accused Nos.1 to 3 and 5 for having cheated pw. 1, an offence punishable under S.420 I. P. C. pw.1 is a big businessman belonging to Kanyakumari District. It is stated that he had made arrangements with a firm "Kulathunkal Corporation" to take delivery of a motor-chasis. For that purpose on 18-11-1958 he came to Trivandrum by the morning bus with a sum of Rs. 5000/- all in hundred rupee notes. Accused 1 and 2 who were known to pw.1 before and who, it is suggested, had known that pw.1 was coming to Trivandrum with money, met him at Pazhavangadi. They took him to one Jacob's Hotel near the Ayurveda College. They occupied a room in the hotel and after resting there for some time, accused 1 and 2 represented that the 1st accused had to get a sum of over Rs. 5000/- from a shop in Chalai towards the price of rice sold by him, that the said amount is kept there in small denomination notes and that if pw.1 would help him by giving Rs. 5000/- in hundred rupee notes he would go at once to Chalai and get the small denomination notes for Rs 5000/. pw. 1, it is stated believed this representation and handed over the 50 hundred rupee currency notes to the 1st accused. The 1st accused received the notes and went out promising to return immediately with the small notes leaving the 2nd accused with pw. 1.

3. pw.1 waited for a long time but not finding the 1st accused returning he grew restive and suspicious. He asked the 2nd accused as to why the 1st accused was not returning. The 2nd accused then offered to go in search of the 1st accused but pw.1 did not allow him to go. Then a taxi was engaged and in the company of the 2nd accused they searched the whole town for the 1st accused, but without any success. In the evening he called his clerk over the phone and directed him to bring the list of the number of hundred rupee notes which he had brought with him to Trivandrum in the morning. Then he wont with the 2nd accused to the Kulathungal Corporation and apprised Mr. Pothen, the proprietor of what had happened. Under instructions from him pw.1 wont to the Police Station and lodged a complaint. Ext. P-1 is that complaint and Ext P-2 is the list showing the number of the currency notes, which was, by that time brought by pw. 1's clerk.

4. The police registered a case and arrested the second accused who was also with pw.1.On information furnished by the 2nd accused all of them went to Varkalai the next day and arrested the 1st accused from the house of pw. 6. First accused was questioned and on information furnished by him a bug belonging to the 1st accused containing Rs. 983/- was recovered from the house of pw. 7. The bag was opened with the key given by the 1st accused and among the currency notes found in the bag wore found 3 hundred rupee notes which bore the same number shown in the list Ext. P-2. The police also recovered Rs. 3590/- from the shop of the 5th accused on the basis of information given by the 1st accused. In the meanwhile pw. 10 One Mr. George finding a notification in the paper regarding the missing of some hundred rupee notes and their numbers and finding that 3 hundred rupee notes with him bore the same numbers produced them before the police. Those three notes