Cheated? Section 420 means up to 7 years.

Myth or fact?

What people often think.

• Myth: Every unpaid deal is cheating. Just file a 420 FIR.
• Fact: Cheating needs deception and a dishonest intention. A promise honestly made and later broken is a civil claim (s.415, illustration (g)).

The law.

Section 415, PPC.

“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 ... is said to "cheat".”

Pakistan Penal Code, 1860 · Section 415, Cheating

Two levels.

The prison terms.

• Cheating, s.417Up to 1 year, or fine, or both.
• Property handed over, s.420Up to 7 years, and also fine.

Hiding is lying.

The Explanation to section 415.

• The ruleA dishonest concealment of facts is a deception.
• Illustration (i)He sells land he already sold to another, without saying so. He cheats.

Real examples.

Illustrations to section 415.

• (a) Fake postPretends to be in the Civil Service to get goods on credit.
• (e) Fake gemsPledges stones he knows are not diamonds to borrow money.
• (f) No intent to repayBorrows money never meaning to pay it back.

Quick quiz. The late delivery.

Guess first, then swipe for the answer.

• A. Yes, always
• B. No, it is a civil breach
• C. Only above Rs. 1 lakh

Answer: B. Illustration (g).

Section 415, PPC.

• Meant to deliverIf he intended to deliver when he took the money, he does not cheat.
• ThenHe is liable only to a civil action for breach of contract.

Courts agree.

2014 MLD 524, Sindh High Court.

• The holdingBreach of contract without dishonest intention is not s.420.
• The resultThe FIR in a civil dispute was quashed as an abuse of process.

Before you pay.

Simple habits for any deal.

• In writingA signed agreement with the price, the date and what is promised.
• A trailPay by bank transfer, not cash in hand.
• CheckThe person, and who really owns what is being sold.

Lost money?

Ask FAI in your own words. It answers with the exact section and the judgments behind it.

• I paid a dealer for a car and he vanished. Is this cheating under section 420 PPC?
• When is a broken deal only a civil case and not cheating?

Example questions

Sources

• Pakistan Penal Code, 1860 · Section 415
  Cheating Pakistan Code