Facts of the Case
‘A’ is accused of cheating ‘B’ by placing an order for certain goods, receiving the goods, and dishonestly failing to pay the price, allegedly with the intention not to pay from the very beginning. The prosecution alleges that the transaction was not a mere breach of contract but an act of cheating under criminal law.
To establish the dishonest intention (mens rea) of ‘A’ at the time of placing the order, the prosecution seeks to adduce evidence that on several previous occasions, ‘A’ had placed similar orders with different persons, received the goods, and failed to make payment within the agreed time.
The defence objects to the admissibility of this evidence, contending that previous transactions are irrelevant and amount to evidence of bad character.
Issues in the Case
- Whether evidence of previous similar transactions by ‘A’ is relevant in a charge of cheating?
- Whether such evidence can be used to prove dishonest intention at the time of the present transaction?
- Whether the evidence falls under any exception to the general rule excluding character evidence?
- Under which provision of the Indian Evidence Act, 1872, are the previous instances admissible, if at all?
Legal Principles Covered to Support Case Proceeding and Judgements
A. Relevant Provision – Section 14, Indian Evidence Act, 1872
Section 14 provides:
Facts showing the existence of any state of mind, such as intention, knowledge, good faith, or absence of mistake, are relevant when such state of mind is in issue or is relevant.
In cases of cheating, the dishonest intention at the time of making the promise is the core issue. Mere failure to pay later may amount to breach of contract, but prior conduct showing a pattern is relevant to infer intention.
B. Application to the Present Case
- In the offence of cheating, mens rea at the inception of the transaction is crucial.
- Evidence that ‘A’:
- Placed similar orders earlier,
- Received goods,
- Failed to pay in due time on multiple occasions,
indicates a systematic course of conduct.
- Such repeated conduct tends to show that A never intended to pay, even in the present case.
- Therefore, the evidence is not being used to show bad character, but to prove dishonest intention, which is a fact in issue.
C. Distinction from Character Evidence
- Section 54 generally excludes evidence of bad character.
- However, Section 14 operates as an exception, permitting evidence of previous acts when they directly establish intention or knowledge.
- The previous instances must be similar in nature and reasonably proximate in time.
D. Supporting Case Laws
- Abdul Latif v. State of Andhra Pradesh (1963)
- The court held that previous similar transactions are relevant under Section 14 to prove dishonest intention in cheating cases.
- Hari Singh v. State of Bihar (1981 SC)
- The Supreme Court ruled that earlier conduct of the accused can be considered to determine whether the accused acted with dishonest intention from the beginning.
- R. v. Francis (English case, followed in India)
- Evidence of previous similar acts was admitted to show fraudulent intent and absence of accident or mistake.
E. Safeguards
- The Court must ensure:
- Similarity of previous acts,
- Proximity in time,
- That the evidence is not used merely to prejudice the accused.
Possible Judgement
The Court is likely to hold that:
- The evidence of previous instances where ‘A’ placed orders, received goods, and failed to pay is relevant and admissible.
- Such evidence is admissible under Section 14 of the Indian Evidence Act, 1872, as it proves the dishonest intention of ‘A’ at the time of placing the present order.
- The previous transactions form a pattern of conduct, showing that the act was not accidental or a mere contractual default.
- Subject to corroboration and proper judicial caution, the evidence can be relied upon to infer cheating.
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