Fraudulent or dishonest inducement is a crucial element of the offence of cheating under IPC 415, and the distinction between mere breach of contract and cheating is based on fraudulent or dishonest intention.

JUDGMENT :

Heard Mr. Rishav Kumar, learned counsel for the petitioner, Mr. Tapas Roy, learned counsel for the State and Mr. Purnendu Sharan, learned counsel for the O.P. No.2.

2. The present petition has been filed for quashing of entire criminal proceeding in connection with P.C.R. Case No. 233 of 2009, corresponding to T.R. No. 67 of 2013 including order taking cognizance dated 11.09.2009 whereby cognizance has been taken under section 417 of the I.P.C., pending in the Court of learned Judicial Magistrate, Ist Class, Godda.

3. The complaint has been filed alleging therein that the complainant has purchased one Mahindra Bolero on 14.06.2006 bearing its Registration No. JH-17B-0494 finance from Magma Scharchi Finance Limited and the delivery of the said vehicle was made to him from Dhanbad against which he has paid the first installment of Rs. 1,26,000/- and thereafter the remaining installment of Rs. 12,600/- were paid by the complainant according to the terms and conditions of the hire purchase agreement.

It was further alleged that the complainant has already paid Rs. 4 lacs to the opposite parties in terms of the agreement whereas the price of the Bolero was Rs. 4,85,000/-. The complainant has also alleged that the accused persons have also misappropriated Rs. 8,000/- paid by the complainant since the receipt has been issued in the name of Ganesh Sah in place of Ganesh Mahto i.e. complainant. The complainant has further alleged that the aforesaid vehicle was snatched by the accused persons with the help of the criminals and the accused persons handed over a copy of inventory to the complainant in spite of his protest. The complainant has also sent legal notice on 10.12.2008 and 04.03.2009 but the accused persons have not replied the same and thus have committed offence under sections 406, 420 and 384 of the I.P.C.

4. Mr. Rishav Kumar, learned counsel for the petitioner submits that one Bolero vehicle was financed by the company namely, Magma Fincorp Ltd. and the petitioner happens to be Branch Officer of the said company. He further submits that a sum of Rs. 3,85,000/- was sanctioned by the said company for purchase of Bolero vehicle. He further submits that O.P. No. 2 failed to pay instalment on time and subsequently, E.M.I. was not coming the vehicle was repossessed by the petitioners in terms of hire purchase agreement and invoice has been issued in the name of Ganesh Sah whereas O.P. No. 2 is Ganesh Kumar Gupta. He further submits that the allegation is that the said receipt was issued in the name of Ganesh Sah not in the name of O.P. No. 2- Ganesh Kumar Gupta. He submits that there is allegation that the vehicle was forcibly taken by the petitioners however, the learned court has not taken cognizance under the relevant section with regard to said allegation and cognizance has been taken only under section 417 of the I.P.C. He submits that the case of cheating is not made out . To buttress his argument, he relied in the case of “Vijay Kumar Ghai Vs. State of West Bengal & Others” reported in (2022) 7 SCC 124 wherein para 31, 32 and 38 the Hon’ble Supreme Court has held as under:-

“31. Section 415 IPC defines “cheating” which reads as under:

“415. Cheating.—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”.”

The essential ingredients of the offence of cheating are:

1. Deception of any person

2. (a) Fraudulently or dishonestly inducing that person—

(i) to deliver any property to any person; or

(ii) to consent that any person shall retain any property; or

(b) intentionally inducing that person to do or omit to do anything whi