Bombay High Court Dismisses State's Revision Against Discharge of Accused in D.Ed. College Cheating Case — No Prima Facie Case of Cheating Under Sections 418 and 420 IPC. Running an Unauthorised College Without Permission Does Not Constitute Cheating Without Evidence of Dishonest Intention at Inception.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The State of Maharashtra filed a criminal revision application challenging an order dated 10th April 1992 passed by the Judicial Magistrate First Class, Kalwan, which allowed the discharge application of the respondents (accused) under Section 245 of the Code of Criminal Procedure, 1973. The respondents were prosecuted for offences punishable under Sections 418 and 420 read with Section 34 of the Indian Penal Code. The FIR was lodged by Sahebrao Patil, Deputy Education Officer, Nashik, alleging that the respondents had started a D.Ed. college named Kailaswasi Somji Laxman Aher Adyapak Vidyalaya in June/July 1991 without prior permission or sanction from the Government. It was further alleged that they collected huge amounts from students and thereby cheated the public. The State relied on a Circular dated 9th August 1991 issued by the State Government directing officers to ensure that unauthorised D.Ed. colleges are not opened and to lodge police complaints. The respondents were informed to close the college but did not comply. The learned APP argued that the discharge was erroneous as the circular and the fact of running an unauthorised college constituted cheating. The respondents' counsel supported the discharge order. The High Court examined the essential ingredients of cheating under Sections 418 and 420 IPC, which require dishonest inducement from the very beginning. The court noted that the FIR did not allege that the respondents had no intention to start the college or that they made false representations at the time of inception. The circular was issued after the college had already started. The court held that merely running an unauthorised college and collecting fees does not automatically amount to cheating. There was no prima facie case to proceed against the respondents. The revision application was dismissed, and the discharge order was upheld.

Headnote

A) Criminal Procedure Code - Discharge under Section 245 - Prima Facie Case - The court examined whether the Magistrate correctly discharged the accused for offences under Sections 418 and 420 IPC. The High Court held that the essential ingredient of cheating is dishonest inducement at the time of inception. Since the FIR only alleged that the college was started without permission and fees were collected, but there was no allegation that the accused had no intention to start the college or that they made false representations at the outset, the discharge was proper. The circular relied upon was issued after the college started. (Paras 1-5)

B) Indian Penal Code - Sections 418 and 420 - Cheating - Essential Ingredients - For an offence of cheating, the accused must have dishonest intention from the very beginning. The mere fact that the college was unauthorised and later closed does not prove cheating. The court noted that the respondents had started the college and collected fees, but there was no material to show that they intended to cheat the students at the time of admission. The discharge was upheld. (Paras 2-5)

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Issue of Consideration

Whether the respondents accused of running an unauthorised D.Ed. college and collecting fees from students can be discharged under Section 245 CrPC for offences under Sections 418 and 420 IPC when there is no evidence of dishonest intention at the time of inception.

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Final Decision

The High Court dismissed the criminal revision application and upheld the order of the Judicial Magistrate First Class, Kalwan, discharging the respondents under Section 245 CrPC.

Law Points

  • Cheating requires dishonest inducement from inception
  • mere running of unauthorised college without permission does not constitute cheating
  • discharge under Section 245 CrPC is proper when no prima facie case exists
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Case Details

2005 LawText (BOM) (08) 68

Criminal Revision Application No.156 of 1992

2005-08-11

Abhay S. Oka

Shri A.S. Gadkari, A.P.P. for the Appellant; Shri R.M. Hardas for the Respondents Nos.1 & 2

The State of Maharashtra

Balasaheb Somji Aher and Hemant Bhaurao Aher

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Nature of Litigation

Criminal revision application by the State against discharge of accused in a cheating case

Remedy Sought

The State sought to set aside the discharge order and restore the prosecution against the respondents

Filing Reason

The State challenged the order of the Judicial Magistrate First Class, Kalwan, discharging the respondents for offences under Sections 418 and 420 IPC

Previous Decisions

The Judicial Magistrate First Class, Kalwan, allowed the discharge application of the respondents under Section 245 CrPC on 10th April 1992

Issues

Whether the Magistrate correctly discharged the accused under Section 245 CrPC when there was no prima facie case for cheating under Sections 418 and 420 IPC? Whether running an unauthorised college and collecting fees without government permission amounts to cheating?

Submissions/Arguments

The learned APP submitted that the circular issued by the State Government and the fact that the college was unauthorised and fees were collected constituted cheating, and the discharge was erroneous. The learned counsel for the respondents supported the discharge order, arguing that there was no dishonest intention from the beginning and no prima facie case.

Ratio Decidendi

For an offence of cheating under Sections 418 and 420 IPC, the essential ingredient is dishonest inducement at the time of inception. Merely running an unauthorised college and collecting fees without government permission does not automatically constitute cheating unless there is evidence that the accused had no intention to start the college or made false representations from the beginning. The discharge under Section 245 CrPC is proper when no prima facie case exists.

Judgment Excerpts

The essential ingredient of the offence of cheating is dishonest inducement at the time of inception. There is no allegation in the FIR that the respondents had no intention to start the college or that they made any false representation at the time of inception. Merely because the college was unauthorised and fees were collected, it cannot be said that the respondents cheated the students.

Procedural History

The respondents were prosecuted for offences under Sections 418 and 420 read with Section 34 IPC based on an FIR lodged by the Deputy Education Officer. They filed a discharge application under Section 245 CrPC before the Judicial Magistrate First Class, Kalwan, which was allowed on 10th April 1992. The State of Maharashtra challenged this order by filing Criminal Revision Application No.156 of 1992 before the Bombay High Court, which was dismissed on 11th August 2005.

Acts & Sections

  • Code of Criminal Procedure, 1973: Section 245
  • Indian Penal Code, 1860: Sections 418, 420, 34
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