Cheating--Bona Fide Purchaser--Purchaser Not Having Knowledge of Forgery By Seller Cannot be held Liable for Fraudulent Transfer
A bona fide purchaser of property, who acquires it for valuable consideration without knowledge of any forgery in the vendor's title documents, cannot be held criminally liable for cheating or conspiracy under Section 420 of the Indian Penal Code. Absence of privity of contract between the purchaser and the complainant is a decisive factor. A third party cannot allege cheating against a purchaser merely because the vendor's title is defective or rooted in a forged document. In such cases, the purchaser is himself a person aggrieved, as the title acquired stands in dispute due to the fraud of the vendor.
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