Mere Inability To Repay Loan Does Not Constitute 'Cheating': SC [Read Judgment]

Ashok Kini

15 Feb 2019 5:03 PM IST

“The mere inability of the appellant to return the loan amount cannot give rise to a criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction, as it is this mens rea which is the crux of the offence.”

The Supreme Court, in a judgment delivered last month, observed that inability of a person to return the loan amount cannot give rise to a criminal prosecution for cheating unless fraudulent or diishonest intention is shown right at the beginning of the transaction. In Satishchandra Ratanlal Shah vs. State of Gujarat, the bench comprising Justice NV Ramana and Justice Mohan...

Mere Inability To Repay Loan Does Not Constitute 'Cheating': SC [Read Judgment]

Ashok Kini

“The mere inability of the appellant to return the loan amount cannot give rise to a criminal prosecution for cheating unless fraudulent or dishonest intention is shown right at the beginning of the transaction, as it is this mens rea which is the crux of the offence.”

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