Cheating--Dishonest Intention--Failure To Fulfil Promise Of Profit In High-Risk Commercial Venture Does Not Establish Dishonest Intention From Inception Of Agreement
Dishonest intention at the inception of an agreement is an essential ingredient of cheating under Section 415 read with Section 420 of the IPC. Mere failure to fulfil a promise or non-payment of agreed returns, arising from factors beyond the promisor's control, does not ipso facto establish cheating. Dishonour of post-dated cheques issued to discharge an existing obligation — as distinct from cheques issued as an inducement — is insufficient to raise a presumption of fraudulent intent from inception. In high-risk commercial ventures such as film production, where returns depend entirely on external market factors, courts must exercise caution before treating a civil dispute as a criminal offence.
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