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AMICUS AI
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Neutral Citations
1997 INSC 571
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Sections 24 and 25 of the Indian Penal Code
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Cites
Cited by
Citation Codes
Neutral Citations
1997 INSC 571
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Sections 24 and 25 of the Indian Penal Code
Smart Summary

Factual and Procedural Background

The prosecution case arose from a cultural show planned by Shri Azhar Hussain (PW 2), a Minister in the State of Maharashtra. Two letters (Exh. 28 and Exh. 29) on the Minister’s letterhead were prepared as invitations to Raja Murad and Javed Khan (PWs). The letters were alleged to be forged because they did not bear the Minister’s signature. The invitees attended the show based on these letters, after which a controversy arose and the matter was investigated by the CBI.

Charges were laid against the appellant and a co-accused (Patel, Accused 2). Accused 2, alleged to have forged the letters, was acquitted by the trial court; the High Court maintained that acquittal. The appellant’s alleged role was limited to delivering the forged letters to the recipients. Although acquitted by the trial court, the High Court convicted the appellant under Sections 417 and 471 read with 465 of the Indian Penal Code (IPC) and imposed sentences as per its judgment. The present appeal challenged that High Court conviction.

Legal Issues Presented

  1. Whether the appellant’s act of delivering the forged letters amounted to using a forged document “fraudulently or dishonestly” as genuine so as to attract liability under Section 471 read with Section 465 IPC.
  2. Whether the appellant’s conduct satisfied the ingredients of “cheating” under Section 415 IPC so as to sustain conviction under Section 417 IPC.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
S. Dutt Dr v. State Of U.P . (AIR 1966 SC 523), (1966) 1 SCR 493 “Intent to defraud” is not synonymous with “intent to deceive”; it requires action resulting in a disadvantage which, but for the deception, the person defrauded would have avoided. Applied to hold that delivery of the forged letters caused no wrongful gain/loss and no disadvantage to anyone; therefore the appellant’s conduct was neither “dishonest” nor “fraudulent,” defeating Section 471 IPC liability.

Court's Reasoning and Analysis

The Court noted that the appellant was not the forger; the alleged forger (Accused 2) had been acquitted and that aspect of the prosecution case had become “sealed.” The Court then tested whether the appellant’s delivery of the forged letters could still attract Section 471 IPC, which requires that the accused “fraudulently or dishonestly” use as genuine a document known (or believed) to be forged.

Referring to the IPC definitions, the Court held that “dishonestly” (Section 24 IPC) requires intention to cause wrongful gain to one person or wrongful loss to another, which was absent because delivery of the letters resulted in neither wrongful gain nor wrongful loss. It further held that “fraudulently” (Section 25 IPC) requires an “intent to defraud,” and applying S. Dutt Dr v. State Of U.P ., found no resultant disadvantage to anyone that would satisfy “intent to defraud.” With these basic ingredients missing, the Court concluded the High Court erred in convicting the appellant under Section 471 read with Section 465 IPC.

On Section 417 IPC, the Court found that the High Court ignored the definition of “cheating” in Section 415 IPC. The High Court had reasoned that because Section 420 IPC was not made out (no cheating involving valuable property), the appellant must be guilty under Section 417 IPC. The Court rejected this approach, stating that even if the case did not fit the first part of Section 415 IPC, it also could not fit the latter part because the appellant’s act did not cause, and was not likely to cause, harm to any person in body, mind, or reputation. Accordingly, the conviction under Section 417 IPC was also found unsustainable.

The Court also recorded that counsel for the State candidly stated he could not support the judgment under appeal.

Holding and Implications

ALLOWED; HIGH COURT JUDGMENT SET ASIDE; APPELLANT ACQUITTED.

The High Court’s convictions under Sections 471 read with 465 IPC and Section 417 IPC were reversed, and the appellant was acquitted of all charges. The decision directly resulted in the appellant’s acquittal; the opinion does not indicate any broader implications beyond applying statutory definitions and the cited precedent to the facts.

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    Jibrial Diwan v. State Of Maharashtra .

    Order

    1. Having heard learned counsel for the appellant, we called upon Mr D.M Nargolkar, learned counsel for the State of Maharashtra requiring him to make submission to support the judgment under appeal. He candidly admitted that he was unable to do so. We appreciate the fair stance he has adopted. In support of the same, we record our reasons.

    2. Shri Azhar Hussain, PW 2 was a Minister at the relevant time in the State of Maharashtra. He had planned a cultural show whereat some artistes were invited. The case of the prosecution is that two letters Exh. 28 and Exh. 29 were prepared on the letterhead of the Minister, whereupon invitations were written to invite Raja Murad and Javed Khan, PWs. These letters were allegedly forged for these did not bear the signature of the Minister. The show was held on the day scheduled. The invitees came on the basis of those forged letters. Later, a controversy was raised. The matter was investigated by the CBI. Charges were laid against the appellant as also one Patel, Accused 2. The second accused stands acquitted by the trial court. His acquittal has been maintained by the High Court. The allegation against the acquitted accused was that he had forged those letters. That part of the prosecution case on account of the acquittal of the second accused has become sealed. The role of the appellant was that he had delivered those two forged letters to the recipients. For that act, even though he was acquitted by the trial court, the High Court has convicted him for offence under Section 417, Section 471 read with Section 465 IPC and awarded him sentences as disclosed in the judgment under appeal.

    3. It bears repetition that the appellant was not the forger of those documents. Section 471 enjoins that whoever fraudulently or dishonestly uses as genuine any document which he knows or has reason to believe to be a forged document, shall be punished in the same manner as if he had forged such document. Section 465 provides that whoever commits forgery shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both. Now the words “dishonestly” and “fraudulently” have been defined respectively in Sections 24 and 25 of the Indian Penal Code. “Dishonestly” has been defined to mean that whoever does anything with the intention of causing wrongful gain to one person or wrongful loss to another person, is said to do that thing “dishonestly”. The word “fraudulently” has been defined to mean that a person is said to do a thing fraudulently if he does that thing with intent to defraud but not otherwise. This Court in S. Dutt (Dr) v. State of U.P AIR 1966 SC 523, (1966) 1 SCR 493 has explained the words “intent to defraud” as being not synonymous with the words “intent to deceive”. It requires some action resulting in a disadvantage which but for the deception the person defrauded would have avoided. Here by the delivery of forged letters, there is neither any wrongful gain to anyone nor any wrongful loss to another. The act of the appellant could not thus be termed to have been done dishonestly. Likewise the appellant cannot be said to have any intention to defraud because his action resulted in no disadvantage to anyone which but for the deception the person defrauded would have acted otherwise. The basic ingredients of the act done “dishonestly” or “fraudulently” being missing, the charge under Section 471 read with Section 465 IPC was totally misplaced and the High Court fell into an error in convicting the appellant on those charges.

    4. So far as the conviction under Section 417 is concerned, the High Court has ignored the definition of “cheating” provided in Section 415 IPC. The High Court has gone to hold that the accused cannot be held guilty for offence under Section 420 IPC because there was no cheating of any valuable or property involved in the act or omission of the appellant. It has just been concluded therefrom that the appellant would, therefore, be guilty for offence under Section 417 IPC. What is deducible is that the High Court perhaps thought that the act or omission of the appellant was not covered in the first part of offence of “cheating” as defined in Section 415 IPC. If so, the act or omission of the accused could not in any event fall in the later part because we fail to see how the act or omission of the appellant caused or was likely to cause harm to any person in body, mind or reputation. Thus the conviction of the appellant for offence under Section 417 was also totally out of place and the verdict on that score deserves reversal.

    5. For the foregoing reasons, we unhesitatingly allow this appeal, set aside the impugned order of the High Court and acquit the appellant of all charges. Before concluding the matter, we compliment Mr Nargolkar for being candid in conceding the acquittal of the appellant at the outset for which we have added the above justification.

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    Comments

    Jibrial Diwan v. State Of Maharashtra .
    (Jul 24, 1997)