Cheating Case Lawyers in Chennai | Section 318 BNS
BNS · Sections 316 & 318

Cheating and criminal breach of trust: where a business dispute crosses the line

Not every broken promise is a crime, and not every crime is merely a broken promise. The line between a civil default and cheating is drawn at intention, and it is the line on which these cases are won or lost.

Quick answer

Cheating under Section 318 BNS (formerly Section 420 IPC) requires dishonest intention at the very outset: an intention not to perform, present when the promise was made.

Failure to repay later, without more, is a civil dispute. That distinction decides both prosecutions and defences.

The intention test

The essential ingredient is dishonest inducement. The complainant must show they were induced to deliver property or do something they would not otherwise have done, and that the accused intended to deceive from the beginning.

Courts look for objective markers of that initial intention: whether the accused ever had the capacity to perform, whether the money was diverted to a wholly unrelated use, whether identity or credentials were faked, and whether the same pattern was repeated with others.

Criminal breach of trust is a different offence

Section 316 BNS covers criminal breach of trust: property lawfully entrusted to someone, then dishonestly misappropriated. The difference matters. In cheating, the deception comes first. In breach of trust, the entrustment is honest and the dishonesty comes later.

Entrustment. Money or property handed over for a specific purpose: an agent, employee, partner or trustee.Misappropriation. Use in violation of that purpose, or in breach of the terms on which it was held.Aggravated forms. Higher punishment where the accused was a public servant, banker, merchant, agent or fiduciary.
Which section is invoked shapes the defence entirely. A complaint that pleads both, without distinguishing them, is often vulnerable at the framing-of-charges stage.

When a civil dispute is filed as a criminal case

We see this constantly: a failed investment, an unpaid supplier, a soured partnership, recast as cheating to create pressure. Where the complaint discloses no dishonest intention at inception, the appropriate response is a petition to quash the FIR, often alongside anticipatory bail.

The mirror image is also true. Genuine fraud is sometimes dismissed as "just a civil matter" by a police station reluctant to register. Where the ingredients are there, we press for registration and escalate as far as necessary.

FAQs

Cheating cases: common questions

Is non-repayment of a loan cheating?+

Ordinarily not. It becomes cheating only if there is evidence the borrower never intended to repay when the money was taken: for example, false identity, forged security, or immediate diversion of the funds.

Can I file both a criminal case and a civil suit?+

Yes. A prosecution and a civil recovery suit can run in parallel on the same facts. Whether both are worth pursuing depends on the amount and on where the real leverage lies.

What is the punishment for cheating?+

Cheating attracts imprisonment which may extend to seven years and a fine in its aggravated form. Sentences vary considerably with the amount involved and the sophistication of the deception.

More on criminal defence
Extortion cases→ Robbery & dacoity→ Regular bail→ How an FIR is registered→ How a criminal trial runs→ Cyber crime & online fraud→