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Read the passage below and answer the following questions.

Cheating is considered a criminal offence under the Indian Penal Code. It is done to gain profit or advantage from another person by using some deceitful means. The person who deceives another knows for the fact that it would place the other person in an unfair situation. Cheating as an offence can be made punishable under Section 420 of the IPC. Scope of Section 415 Cheating is defined under Section 415 of the Indian Penal Code as whoever fraudulently or dishonestly deceives a person to induce that person to deliver a property to any person or to consent to retain any property. If a person intentionally induces a person to do or omit to do any act which he would not have done if he was not deceived to do so and the act has caused harm to that person in body, mind, reputation, or property, then the person who fraudulently, dishonestly or intentionally induced the other person is said to cheat. Any dishonest concealment of facts that can deceive a person to do an act that he would not have done otherwise is also cheating within the meaning of this section. Essential Ingredients of Cheating requires · deception of any person. Fraudulently or dishonestly inducing that person to deliver any property to any person or to consent that any person shall retain any property; or · intentionally inducing a person to do or omit to do anything which he would not do or omit if he were not so deceived, and the act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property.

Deceit– a tort arising from an untrue or false statement of facts which are made by a person, recklessly or knowingly, with an intention that it shall be acted upon by the other person, who would suffer damages as a result. 

Fraud – a false or untrue representation of the fact, that is made with the knowledge of its falsity or without the belief in its truth or a reckless statement that may or may not be true, with an intention to induce a person or individual to act independent of it with the result that the person acts on it and suffers damages and harm. In other words, it is a wrong act or criminal deception with an intention to result in financial or personal gain.

Question :- D went to a moneylender, Z, for the loan. D intentionally pledges the gold article with Z taking the loan. D knows that the article is not made of gold. After a few days, D leaves the village. Decide.

Option: 1


Option: 2

D has committed cheating as well as fraud 

Option: 3

D has not committed the offence of cheating 


Option: 4

D has committed an act which is an offence of cheating as well as the tort of deceit

As per section 415 of IPC, D has intentionally pledged the gold article with Z, his intention is clearly to deceive Z and cause him financial loss hence D would be liable for the offence of Cheating. Actions of D are also held liable as a tort of deceit.

Hence option (d) is correct. 

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Rishabh Jain