In India, Section 420 of the Indian Penal Code (before its repeal by introduction of the Bharatiya Nyaya Sanhita) dealt with 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 fine.The distinction between a mere "breach of contract" and the "offence of cheating" was a fine one.
Mere breach of contract could not give rise to criminal prosecution for cheating unless fraudulent or dishonest intention was shown right at the beginning of the transaction, that is the time when the offence was said to have been committed.
To hold a person guilty of cheating, it was necessary to show that they had fraudulent or dishonest intention at the time of committing the act.
[2] A mere representation, which was neither claimed or alleged to be dishonest or fraudulent, would not attract the charge of cheating only because the complainant parts with their money on the basis thereof.