Cheating with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect
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Summary
Cheating that the offender knows is likely to cause wrongful loss to a person whose interest in the transaction he was legally or contractually bound to protect is an offence. It applies when the offender had a duty by law or contract to safeguard another's interest and still cheated. Punishment: imprisonment up to three years, or fine, or both.
Example
Priya is paid to hold a tenant's security deposit for Meera and is contractually bound to protect it. Priya fraudulently uses the deposit knowing Meera will suffer wrongful loss. Priya would be guilty under this provision and may face up to three years imprisonment, or fine, or both.
Bare Act
Enacted textWhoever cheats with the knowledge that he is likely thereby to cause wrongful loss to a person whose interest in the transaction to which the cheating relates, he was bound either by law, or by legal contract, to protect, shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
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