Cheating--Dishonour of Post-dated Cheque--Criminal Liability For Cheating Cannot Be Inferred From Dishonour Of Post-Dated Cheque Without Evidence Of Dishonest Intention At Inception
Dishonour of a post-dated cheque, by itself, does not establish dishonest intention at the inception of a transaction so as to attract the offence of cheating under Section 420 of IPC. Post-dated cheques issued to discharge an existing liability are distinct from cheques issued to induce a person to part with money. Fraudulent intent must exist at the time of making the promise, not merely be inferred from subsequent failure to pay. Dishonour of such cheques may attract proceedings under Section 138 of the Negotiable Instruments Act, but does not automatically constitute cheating. Failure Of Speculative Commercial Venture Followed By Dishonour Of Cheque Does Not Establish Cheating Without Prima Facie Proof Of Initial Fraud
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