Offences Of 'Cheating' & 'Criminal Breach Of Trust' Cannot Co-Exist On Same Allegations : Supreme Court

The Supreme Court has ruled that the offences of cheating under Section 420 IPC and criminal breach of trust under Section 406 IPC cannot be simultaneously invoked based on the same set of allegations.

The court clarified that these are distinct offences requiring different ingredients, while cheating involves deception at the inception, criminal breach of trust presupposes an existing fiduciary relationship.

The court prevents dual prosecution for essentially the same conduct and ensures precise legal characterisation of offences. Accordingly, the appeal was allowed.

On the aspect of cheating, the Court said that if the complaint admitted that the property was entrusted to the appellant, then no case of cheating would arise as the necessary ingredients of cheating i.e., inducement to deliver property was absent. 

[Arshad Neyaz Khan V State of Jharkhand & Anr.]