420. Cheating and dishonestly inducing delivery of property
Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
CLASSIFICATION OF OFFENCE
Punishment—Imprisonment for 7 years and fine—Cognizable—Non-bailable—Triable by Magistrate of the first class—Compoundable by the person cheated with the permission of the court.
IPC, Section 420, 406 read with Section 34 – Under agreement for availing of intellectual services for marketing the products of the complainant, the accused did not pay the amount due and payable under the agreement – Merely because the accused might not have paid the amount due and payable under the agreement or might not have paid the amount in lieu of one month Notice before terminating the agreement by itself cannot be said to be a cheating and/or having committed offence under Sections 406 and 420 of the IPC as alleged – FIR quashed – Cr. P.C. Section 482. (2018)2 SCeJ 1872