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2026 Supreme(HP) 433

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
SANDEEP SHARMA, J.
State of Himachal Pradesh - Appellant
Versus
Bias Dev - Respondent
Criminal Appeal No.173 of 2012 
Decided On : 07-03-2026

Advocates Appeared:
For the Petitioner:Mr. Rajan Kahol & Mr. Vishal Panwar, Additional Advocates General with Mr. Ravi Chauhan & Mr. Anish Banshtu, Deputy Advocates General.
For the Respondent:Mr. Vijay Singh Bhatia, Advocate.

Cheating under Section 420 IPC requires dishonest intention from inception; initial provision of facilities and institute closure due to voluntary student exits and lack of admissions do not constitute offence.

Headnote:(A) Indian Penal Code, 1860 - Sections 415 and 420 - Cheating - Essential ingredients - Dishonest intention from the very beginning is sine qua non to invoke provision - Accused opened vocational institute, advertised courses, collected partial fees, provided classrooms, bus facility and instructors - Students attended classes but majority voluntarily left within months or joined army - No new admissions led to closure - Failure to issue diplomas or complete training does not constitute cheating without proof of fraudulent inducement ab initio - Prosecution witnesses mostly hostile, admitted voluntary departure and partial payments - Material contradictions and inconsistencies render evidence unreliable for conviction. (Paras 4-23)

(B) Code of Criminal Procedure, 1973 - Section 378 - Appeal against acquittal - No interference unless findings perverse or illegal - Evidence must be consistent and credible; appellate court correctly reversed conviction based on unreliable prosecution case. (Paras 19-20)

Facts of the case:
Appeal by State challenging acquittal reversing trial court's conviction for cheating students by allegedly luring them with false promises of diplomas, collecting fees and abruptly closing institute without notice.

Findings of Court:
Prosecution failed to prove dishonest intention or cheating beyond reasonable doubt; acquittal judgment well-reasoned on proper appreciation of evidence.

Issues: Whether dishonest inducement established from inception; sufficiency and consistency of prosecution evidence to sustain conviction.

Ratio Decidendi: Offence of cheating demands proof of deception causing delivery of property through initial dishonest intent; legitimate initial operations followed by circumstantial closure due to student attrition and no admissions preclude liability.

Result: Appeal dismissed; acquittal upheld.

Table of Content
1. appeal against acquittal in section 420 ipc case. (Para 1)
2. state argues guilt proved despite hostile witnesses. (Para 2)
3. defense claims no witness supports prosecution case. (Para 3)
4. witnesses hostile; voluntarily left functional institute. (Para 4 , 5 , 6 , 7 , 8 , 9)
5. key witnesses inconsistent on fees and closure. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
6. prosecution evidence full of contradictions. (Para 18 , 19)
7. conviction demands consistent witness evidence. (Para 20)
8. no dishonest intent proved for cheating offence. (Para 21 , 22 , 23)
9. acquittal upheld; appeal stands dismissed. (Para 24)

Judgment :

Sandeep Sharma, J.

Instant criminal appeal filed under Section 378 of Code of Criminal Procedure, lays challenge to judgment of acquittal dated 22.09.2011 passed by learned Additional Sessions Judge, Ghurmarwin, District Bilaspur, Himachal Pradesh (Camp at Bilaspur), in Criminal Appeal No.19/10 of 2008 reversing the judgment of conviction and order of sentence dated 24.09.2008 passed by learned Judicial Magistrate First Class, Court No.1, Ghumarwin, District Bilaspur, Himachal Pradesh, in Case No.5/1 of 1999, whereby Court below, after having held respondent- accused (hereinafter ‘accused’) guilty of his having committed offence punishable under Section 420 of Indian Penal Code, sentenced him to undergo rigorous imprisonment for a period of two years and pay a fine to the tune of Rs.5,000/- and in case of default in paying the fine amount, the accused shall further undergo rigorous imprisonment for three months.

2. Precisely, the grouse of the appellant/State, as has been highlighted in the appeal and further canvassed by Mr. Rajan Kahol, learned Additional Advocate General representing the appellant, is that learned First Appellate Court committed a grave error, while reversing the well reasoned judgment of conviction recorded by the learned trial Court. He states that bare perusal of evidence led on record by the prosecution reveals that prosecution proved beyond reasonable doubt that accused cheated the complainant as well as other students by not providing them Diploma Certificates for which he had taken fees to the tune of Rs.9,000/- and Rs.11,200/- respectively. Mr. Kahol states that though prosecution witnesses turned hostile, but if the cross-examination conducted upon these witnesses is read in conjunction, it clearly emerges that accused had initially lured the complainant and other persons to take admission in his institute, but he, after his having received fee, closed the institute, as a result thereof future of the complainant and other persons was put in jeopardy. While referring to the statements of PW-2 Dineshwar, PW-4 Rakesh Kumar, PW-5 Mohinder Singh, PW-11 Sushil Dutt, PW-19 Rakesh Kumar and PW-20 SI Kewal Singh, Mr. Rajan Kahol, learned Additional Advocate General, attempted to argue that prosecution successfully proved the guilt of the accused beyond reasonable doubt, as such, there was no occasion, if any, for the First Appellate Court to reverse the well reasoned judgment of conviction recorded by learned trial Court.

3. To the contrary, Mr. Vijay Singh Bhatia, learned counsel for the accused, while supporting the impugned judgment of acquittal recorded by the First Appellate Court, contended that none of the prosecution witnesses supported the case of the prosecution. While referring to the statement of PW-15 i.e. complainant, Mr. Bhatia, stated that afore witness himself admitted that he had voluntarily left the institute and the allegations levelled in the complaint lodged at his behest were not correct. He submitted that since none of the prosecution witnesses supported the case of the prosecution, there was no occasion, if any, for the learned trial Court to hold the accused guilty of his having committed offence punishable under Section 420 of Indian Penal Code. He stated that since in the case at hand, prosecution failed to prove the ingredients of of Indian Pena

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