When offence of cheating U/S 420 of IPC is not made out?

 From the decisions cited by the appellant, the
settled proposition of law is that every breach of
contract would not give rise to an offence of cheating
and only in those cases breach of contract would
amount to cheating where there was any deception
played at the very inception. If the intention to cheat
has developed later on, the same cannot amount to
cheating. In other words for the purpose of constituting
an offence of cheating, the complainant is required to
show that the accused had fraudulent or dishonest
intention at the time of making promise or
representation. Even in a case where allegations are
made in regard to failure on the part of the accused to
keep his promise, in the absence of a culpable intention
at the time of making initial promise being absent, no
offence under Section 420 of the Indian Penal Code can
be said to have been made out.

REPORTABLE
IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO.2341 OF 2011
Vesa Holdings P. Ltd. & Anr. …

versus
State of Kerala & Ors. …
Citation;(2015) 8 SCC293

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