CHEATING

S.415 states that whoever by deceiving any person, whether or not such
deception was the sole or main inducement,

(a) fraudulently or dishonestly induces the person so deceived to deliver any

property to any person, or to consent that any person shall retain any property;
or

(b) intentionally induces the person so deceived to do or omit to do anything

which he would not do or omit to do if he were not so deceived and which act or
omission causes or is likely to cause damage or harm to any person in body,
mind, reputation, or property

Before cheating can be proved, you must fulfill the preliminary element of:
Deception

a) First element

Khoo Kay Jin

Facts : The appellant was convicted for cheating in the lower court. He had
issued four post-dated cheques after receiving the radios from the victim. The
victim accepted the payment three days late from the due date.

Held: The exact act of deception was not established in this case. Just because
the appellant issued cheques that could not be honoured did not mean he
intended to deceive the victim. The victim had accepted the payment late and
was in no worse position than before. The conviction was quashed and a retrial
was ordered.
IN CONTRAST,

Chen Kee Nan (distinguished Khoo Khay Jin) –

Facts: The accused was charged but acquitted for cheating. Here, he had used
post-dated cheques to pay for 35 packs of rice. The victim actually demanded
for cash payment but on the spot the accused paid using post-dated cheques.
From the facts, the accused never intended to pay with cash but only promised
he would otherwise the victim would have never given him the rice. PP
appealed against acquittal.

Held: Unlike Khoo Khay Jin, the accused here had clearly lied to the victim in
an effort to induce him to part with the rice. Hence there was a clear deception.
Acquittal quashed and retrial ordered.

Once that is proven, the classic elements have to be established i.e. AR/MR. For
cheating however, the AR/MR can take place in two ways:

b) Second element:

AR – There must be an inducement induce the person to deliver any property to

any person; or to consent that any person shall retain that property.

MR – Fraudulently (section 25) or Dishonestly (sections 23 and 24).

S.24 states that intention of causing wrongful gain or loss to another person
S.25 defined fraudulently as if a person does something with the intention to
defraud. The act of dishonestly and fraudulently must come with inducement to
deliver the property to another person.
Pasupathy Kanagasaby v PP ,
Facts: By way of impersonation, the accused had deceived the banker to
deliver to her a huge sum of money.
Held: The Court of Appeal accepted that under the first part of section
415, the moment a person is deceived and by the practice of such deception a
property is fraudulently or dishonestly obtained from him, then the offence of
cheating is committed. The accused here had acted dishonestly in inducing the
banker to deliver to her money within the definition of section 415(a).

c) Third element:

AR – Induce the person so deceived to do or to omit to do anything which he

would not do or omit to do if he were not so deceived and which act or omission
is likely to cause damage or harm to any person in body, mind, reputation, or
property.

MR – Intentionally.

Balboo Khan

Facts: The appellant in this case impersonated as a famous doctor named Dr

Mohan Lal and used that name to carry out eye surgery. The victim carried out
eye surgery of his son based on the understanding that the doctor was indeed Dr
Mohan Lal. He subsequently found out about the cheat made a police report.
Convicted for cheating.

Held: On appeal, the Court upheld the conviction. Section 415(b) requires
damage to be proven on the person to whom the cheating was committed in
addition to deception and inducement. The son who underwent the surgery
didn’t suffer any damage from the cheating. However, the Court found that by
allowing a fake to do surgery, it had caused “mental anguish” to the father and
could therefore classify as damage to “any person”.

Forgery
s.463 Whoever makes any false document or part of a document with intent to
cause damage or injury to the public or to any person, or to support any claim or
title, or to cause any person to part with property, or to enter into any express or
implied contract, or with intent to commit fraud or that fraud may be
committed, commits forgery.

s.470 states that a false document, made wholly or in part by forgery, is

designated “a forged document”.

AR: To make a document

MR: Intention

s.464 – A person is said to make a false document

a. By, dishonestly (refer sections 24 and 23) or fraudulently (section 25)

signing, sealing or executing a document or part of a document etc. by
with intention of causing that document to seem that it was made by the
person who had the authority to make it.

Example 1: A has a letter of credit upon B for ringgit 1,000 written by Z.

A in order to defraud B,adds a cypher to the 1,000, and makes the sum
 10,000, intending that it may be believed by B that Z so wrote the letter.
A has committed forgery.

Example 2: A picks up a cheque on a banker signed by B, payable to bearer,

but without any sum having been inserted in the cheque. A fraudulently fills up
the cheque by inserting the sum of one thousand ringgit. A commits forgery.

Example 3: A leaves with B his agent, a cheque on a banker, signed by A,

without inserting the sum payable, and authorizes B to fill up the cheque by
inserting a sum not exceeding one thousand ringgit for the purpose of making
certain payments. B fraudulently fills up the cheque by inserting the sum of ten
thousand. B commits forgery.

Datuk Haji Harun Idris

Facts: The appellant-accused had falsified minutes of the Investment

Committee so that the bank would believe that its shares could be used as a
security for a loan.

Held: The minutes was a false document and not made by the Investment
Committee (the persons with lawful authority to make such a document). He
was therefore guilty for forgery.
 b. Without lawful authority, dishonestly or fraudulently cancels or alters a
document after it has been made or executed by himself or by any other
person.

Example 1: A, without Z’s authority, affixes Z’s seal to a document, purporting

to be a conveyance of an estate from Z to A, with the intention of selling the
estate to B, and thereby of obtaining from B the purchase money. A has
committed forgery.

Ahmad who wants to sell his car. He dishonestly alters the ownership document
of the car to increase the selling price. Ahmad changes the original purchase
price and replaces it with a higher amount to deceive potential buyers. By doing
so, Ahmad is committing forgery under Section 463 because he is altering a
document without lawful authority with the intent to deceive and cause financial
loss to others

c. Who dishonestly or fraudulently causes any person to sign, seal, execute

or alter a document whom by reason of unsoundness of mind or
intoxication or by reason of deception he does not know the contents of
the document or nature of the alteration.

Sarah who wants to acquire her neighbor's property. Sarah prepares a sale
agreement document and asks her neighbor, John, to sign it. However, Sarah
intentionally conceals certain terms in the document, such as an additional
clause that allows her to claim ownership of the neighboring property. John,
who is elderly and easily deceived due to his mental condition, signs the
document without knowing its true contents. In this case, Sarah has committed
forgery under Section 463 because she fraudulently caused John to sign a
document without his knowledge of its true nature, with the intent to deceive
and acquire his property.

DIFFERENCES BETWEEN CHEATING AND FORGERY.

CHEATING FORGERY
ss.415-420 ss.463-477A
Punishment – Max 5 yrs / fine / both Punishment – Max 2 yrs / fine / both
(s.417) (s.465)
Caused by oral statements / Caused on documents.
documents.
Section 463 specifically focuses on
Section 415 encompasses a wider the act of creating or altering
range of deceptive methods, including documents, as forgery primarily
both oral statements and documents. involves the fabrication or
This is because cheating is not limited falsification of documents.
to the fabrication or alteration of
documents alone. Deception through
oral statements can also lead to
cheating, such as making false
promises, misrepresenting facts, or
providing misleading information. In
contrast.
Committed by deceiving another and Committed by gaining cash / forged
obtains property / profit. documents.

Section 415 primarily deals with the Section 463 specifically addresses the
act of deceiving another person to use of concocted or forged documents
obtain property or profit. The to gain cash or other property. The
emphasis is on the deceptive actions focus is on the fraudulent creation or
and intent to gain a financial alteration of documents to deceive
advantage. This can involve various others
means of deception, including
misappropriation, fraudulent
transactions, or false representations.
into providing financial benefits.
Causes damage or harm to the body, Causes damage or harm to property.
mind, reputation or property May indirectly cause harm to
reputation.
Section 415 recognizes that cheating In contrast, Section 463 primarily
can cause various forms of damage or concentrates on the harm caused to
harm, extending beyond property- property or indirectly to reputation
related consequences. The harm through the use of forged documents.
inflicted may encompass physical,
mental, or reputational aspects, in
addition to property loss. Cheating
can result in physical harm if, for
example, it involves fraudulent
medical treatments. It can cause
 mental harm through emotional
manipulation or psychological
distress. Additionally, cheating can
harm a person's reputation by
tarnishing their character or integrity.
Relates to property directly. Relates to the documents of title
directly, indirectly relating to the
Section 415 directly addresses property.
fraudulent activities that are linked to
property. The offense of cheating Section 463 primarily focuses on the
often involves deception related to fabrication or falsification of
property transactions, such as documents, which indirectly affects
fraudulent sales, leases, or financial property rights or interests. Forgery is
schemes. The intent is to unlawfully concerned with the manipulation of
obtain ownership, control, or documents that are associated with
financial benefits related to property.. property, such as title deeds,
contracts, or financial records

Example for Section 415 (Cheating):

Alex persuades elderly individuals to transfer their property to him by deceiving them into believing
that he will manage their assets and provide financial security. However, once the property is
transferred, Alex sells it for personal profit without fulfilling his promises.

Example for Section 463 (Forgery):

Emily creates a forged will in which she is named as the sole beneficiary of her deceased aunt's
estate. She fabricates the document and presents it to the probate court to gain control over the
valuable assets, including property and financial accounts.

Damage or Harm:

Example for Section 415 (Cheating):

David, a fitness trainer, promotes a fraudulent weight loss program to his clients. He falsely claims
that his program guarantees rapid weight loss without exercise or dieting. As a result, his clients
experience adverse health effects, physical harm, and psychological distress.

Example for Section 463 (Forgery):

Lisa forges her employer's signature on a company document to divert funds to her personal bank
account. Her actions not only cause financial harm to the company but also tarnish its reputation
when the discrepancies are discovered.

Relationship to Property:

Example for Section 415 (Cheating):

Mike poses as a real estate agent and tricks prospective buyers into paying deposits for properties
that do not belong to him. He fabricates false documents, including title deeds and contracts, to
deceive buyers into believing that they are purchasing legitimate properties.

Example for Section 463 (Forgery):

Samuel fabricates counterfeit currency notes using sophisticated printing equipment. He uses these
forged documents (currency notes) to make purchases, causing financial harm to businesses and
undermining the integrity of the currency