Negotiable Instruments: Exhaustive Coverage by Adv Roma Bhagat. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Ghazala Rahman (advocate)     06 February 2022

Definition of Fraud

Hello Sirs...
Please guide

What is the definition of Fraud.
And what are Popular case laws on the Point of Fraud.
Duties and liabilities of Innocent person upon knowledge of Fraud.


 5 Replies

PALLABH HALDAR   07 February 2022

Refer Section 17 of Indian Contract Act

Even 406 and 420 of IPC even many other sections of IPC can also be referred.

The definition of fraud is wide.

In India many Organisations deal with Fraud so it depends upon the circumstances.

Same goes with Judgement.

Nowadays online Fraud is on rise but even online fraud are of different types.


Advocate Pallabh Haldar

1 Like

Sudhir Kumar, Advocate (Advocate)     07 February 2022

IPC does not define   "fraud"


fraud is


(i) a wrongful gain (ii) by malafide intention (iii) taking benefit of system error and (iv) taking helpo of negligence of other person.

1 Like

Ghazala Rahman (advocate)     07 February 2022

I am thankful Sirs Pallabhr Haldar and Sir Sudhir Kumar , for your reply to my Query

Archana Pandey   07 February 2022

Dear Ghazala, 

A fraud is well explained in under Section 17 of Indian Contract Act which says such activities like false promises, hide truth intentionally, deceive plans, no intention to fulfil the promise. Also, to provoke party to enter into such agreement which aim is to deceive other one. 

However, please elobarate which type of fraud you seek to know regarding your question on liability and duty of an innocent person after having knowledge of fraud. Since it's wider concept as fraudulent activities are in more popular in online scams in nowadays. As it will help to share popular case laws then and also it will be easy to mention the actions can be taken on such kind of frauds you are willing to know. 

Ghazala Rahman (advocate)     08 February 2022

. Thank you Sir Archana Pandey. Please find here some Examples:
I purchased a house , title document had to receive after completion of installment. Later reaveled that house already property of 2 separate buyers.
2. . Some one enjoyed my data , without information to me.
3. Some one promised me that he will give me valubale if I get business . On his assurance I made a deal with third person for that valuable. The 1st person refused to honor his promise for valuable without any alternate / security .

4. A Banker offerd me insurance policy on behalf of agent.
I purchased , after two Months he info that agent defaulted. And he can't help me. And I have to bear loss. Or I search agent and sue him.

In above cases getting relief for clients is so tough and contested.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register