Quick answer: Section 420 of the Indian Penal Code is broadly corresponds to Section 318(4) of the Bharatiya Nyaya Sanhita, 2023 for cheating and dishonestly inducing delivery of property. Section 318(4) is cognizable and non-bailable and carries imprisonment of up to seven years and fine. A person facing arrest may seek anticipatory bail under Section 482 of the BNSS, while a person already arrested can seek regular bail under the applicable BNSS provisions. The exact defence depends on the allegations, the date of the alleged offence and the evidence.
Introduction
Section 420 IPC was one of the provisions most often mentioned in cheating and fraud cases before the new criminal laws came into force. The Bharatiya Nyaya Sanhita, 2023 replaced the Indian Penal Code from 1 July 2024, subject to the savings provisions for offences and proceedings governed by the earlier law.
For allegations involving cheating and dishonest inducement to deliver property under the new law, the provision to examine is Section 318(4) BNS. It is important to identify the exact subsection because Section 318 contains more than one form of cheating and the procedural classification is not identical for all of them.
This article explains the relationship between Section 420 IPC and Section 318(4) BNS, the bail options, the filing process, the arrest rules, common defence issues, settlement and quashing, and the difference between cheating and an ordinary contractual dispute.
Section 420 IPC and Section 318(4) BNS: Quick Comparison
| Point | Section 420 IPC | Section 318(4) BNS |
|---|---|---|
| Law | Indian Penal Code, 1860 | Bharatiya Nyaya Sanhita, 2023 |
| Core allegation | Cheating and dishonestly inducing delivery of property | Cheating and dishonestly inducing delivery of property or specified treatment of a valuable security |
| Maximum punishment | Up to 7 years and fine | Up to 7 years and fine |
| Cognizable | Yes | Yes |
| Bailable | No | No |
| Trial court | Magistrate of the first class | Magistrate of the first class |
| Current use | Relevant to offences governed by the old IPC and preserved proceedings | Relevant to offences governed by the BNS |
The BNS repeal does not erase offences that were already committed under the IPC. The savings clause preserves the previous operation of the repealed law and related proceedings. The date of the alleged conduct therefore matters before deciding which provision should appear in the case.
What Does Section 318(4) BNS Actually Punish?
Section 318 of the BNS sets out the offence of cheating. Section 318(4) applies where a person cheats and thereby dishonestly induces the person deceived to deliver property, or to make, alter or destroy a whole or part of a valuable security.
The offence is not established merely because two people have a financial disagreement. The complaint and evidence must disclose the elements required by the statutory provision.
The Supreme Court has repeatedly explained in cases under the earlier Section 420 IPC that dishonest intention at the beginning of the transaction is central to a cheating allegation. A later inability to perform a promise is not automatically proof that the promise was made dishonestly from the beginning.
What Are the Main Ingredients of a 420 IPC or 318(4) BNS Case?
Deception
The allegation should identify the deceptive representation, conduct or omission relied upon by the complainant. A bare statement that the accused "cheated" someone does not explain what the deception was.
Dishonest or fraudulent intention
For a cheating allegation arising from a transaction, the mental element is often the central dispute. The defence can examine whether dishonest intention existed when the transaction was entered into or arose only later.
Inducement
The alleged deception must have induced the complainant to act in the manner covered by the offence.
Delivery of property or the specified statutory consequence
Section 318(4) focuses on dishonest inducement to deliver property or the making, alteration or destruction of a valuable security in the circumstances set out in the provision.
Is Section 318(4) BNS Bailable?
No. Section 318(4) is classified as non-bailable and cognizable. The punishment may extend to seven years and fine.
Non-bailable does not mean that bail cannot be granted. It means that bail is not an automatic right in the same way as bail for a bailable offence. Depending on the stage of the case, an accused may seek anticipatory bail or regular bail from the appropriate court.
Can You Get Anticipatory Bail in a 318(4) Case?
Yes. Section 482 of the BNSS provides for anticipatory bail where a person has reason to believe that they may be arrested for a non-bailable offence.
An application can be made before the Court of Session or the High Court. The court may impose conditions, including cooperation with investigation, attendance for questioning, restrictions on influencing witnesses and other conditions considered necessary.
Anticipatory bail is decided on the facts of the case. The existence of a non-bailable section does not itself determine the result.
When Should Anticipatory Bail Be Filed?
There is no requirement to wait until arrest. Where there is a genuine and reasonable apprehension of arrest, an advocate can consider filing the application before the arrest takes place.
The application should ordinarily place the relevant material before the court, including the FIR or complaint where available, the applicant's role, documents that explain the transaction, and reasons why custodial interrogation may not be necessary.
Delay can make the situation more difficult if the police have already taken steps toward arrest. The right approach depends on the current stage of the investigation.
What If You Have Already Been Arrested?
After arrest, the appropriate remedy is generally a regular bail application. Section 480 of the BNSS contains the Magistrate's bail framework for non-bailable offences, while Section 483 gives bail powers to the High Court and Court of Session.
The application can address the nature of the allegation, the accused's role, the documentary record, the need for further custody, cooperation with investigation, the possibility of tampering with evidence, and the risk of absconding.
Whether bail is granted depends on the facts and the court's assessment. An accused should not assume that a seven-year maximum sentence automatically requires continued custody.
Can the Police Arrest You Immediately in a 318(4) Case?
Section 318(4) is cognizable, which means the police have statutory powers to investigate and, where the BNSS conditions are satisfied, arrest without a warrant. But a cognizable offence does not mean that arrest must automatically follow in every case.
Section 35 of the BNSS contains the present arrest and notice framework. For offences within the relevant seven-year category, the police must consider whether arrest is necessary for the purposes specified by law. Where arrest is not required, the officer may issue a notice requiring appearance.
The Supreme Court has repeatedly said that arrest should not be used as routine punishment before trial. If you receive a valid notice, take it seriously and comply with its requirements after obtaining legal advice.
What Are the Main Defence Points in a 420 IPC or 318(4) BNS Case?
No dishonest intention at the beginning
This is an important issue in business, loan, property and commercial disputes. A person may enter into a genuine transaction and later be unable to perform because circumstances changed. That later failure does not by itself prove that the original promise was made with dishonest intention.
No specific deception
The defence can examine whether the complaint identifies a concrete false representation or deceptive act and whether the alleged representation can be supported by evidence.
No dishonest inducement
Even where there is a dispute, the prosecution must connect the alleged deception with the delivery of property or another consequence required by Section 318(4).
Dispute is essentially contractual
Loan defaults, unpaid invoices, failed supply arrangements, construction disputes, partnership disagreements and property transactions can generate both civil and criminal allegations. The existence of a civil remedy does not automatically prevent criminal prosecution, but a civil dispute also does not automatically become cheating.
Accused had a limited role
Where several people are named, the evidence against each person should be examined separately. A general allegation against a group may not establish the individual role required for criminal liability.
Contemporaneous documents support the defence
Agreements, emails, WhatsApp messages, invoices, bank records, delivery documents and accounting records created during the transaction may help show what the parties actually intended at the time.
What Documents Should You Give Your Lawyer?
Collect the complete record rather than only documents that support one side of the dispute.
- FIR or complaint copy, if available
- Police notice or summons
- Agreements, contracts and amendments
- Invoices, receipts and payment records
- Bank statements
- Emails and relevant messages
- Delivery, possession or service records
- Tax and accounting records where relevant
- Earlier legal notices and replies
- Documents showing your exact role in the transaction
Do not delete, alter or fabricate electronic records. Preserve original files and keep secure backups.
Can a Cheating Case Be Treated as a Civil Dispute?
Sometimes a court may find that the allegations disclose only a civil dispute, but that conclusion depends on the facts.
The practical question is whether the evidence supports dishonest deception at the time the transaction was entered into, or whether the dispute is about a later failure to perform a genuine promise.
The Supreme Court has repeatedly distinguished a simple breach of contract from cheating. At the same time, calling something a "civil dispute" does not prevent criminal proceedings where the required ingredients of cheating are actually disclosed.
Can You Seek Quashing of a 318(4) FIR?
In appropriate cases, the High Court can exercise its inherent jurisdiction under Section 528 of the BNSS.
Quashing and bail are different remedies. Bail asks whether the accused should remain in custody. Quashing asks whether the criminal proceedings should continue at all.
A quashing petition may be considered where the allegations, even if accepted as stated, do not disclose the offence or where continuation of the case would amount to an abuse of the criminal process. The High Court does not normally conduct a full trial while deciding a quashing petition.
Can a 318(4) Case Be Settled?
Section 359 of the BNSS contains the statutory rules on compounding. Section 318(4) is included in the category of offences that may be compounded with the permission of the court by the person who was cheated.
A settlement agreement and a compounding order are not the same thing. Depending on the stage of the case, the parties may need to approach the competent criminal court and satisfy the requirements of the BNSS.
Where a settlement is reached in a case that is not directly compoundable in the particular circumstances, the parties may need to consider other procedural relief. The correct approach depends on the sections invoked and the stage of proceedings.
What Is Default Bail in a 318(4) Case?
Default bail is a statutory right that may arise when the investigation is not completed within the period prescribed by Section 187 of the BNSS and the accused satisfies the statutory requirements for release.
For offences punishable with death, life imprisonment or imprisonment of ten years or more, the statutory period is 90 days. For other offences, it is 60 days. Because Section 318(4) carries a maximum punishment of seven years, it ordinarily falls within the 60-day category, subject to the exact sections invoked and the legal calculation in the particular case.
The custody dates and filing of the police report must be calculated carefully. Default bail should be discussed with a criminal lawyer before the statutory period expires.
Does a Section 35 BNSS Notice Mean You Are Arrested?
No. A Section 35(3) notice is a direction to appear before the police in circumstances where the statutory requirements for arrest are not met at that stage. It is different from an arrest.
Do not ignore the notice. Attend as required, keep proof of compliance and obtain legal advice about what documents or explanation should be provided.
How Does a Typical 318(4) Case Proceed?
| Stage | What can happen |
|---|---|
| Complaint or information | The complainant reports the alleged cheating to the police or another competent authority. |
| FIR | Where the information discloses a cognizable offence, the police may register an FIR under the BNSS. |
| Investigation | Police may collect statements, bank records, electronic evidence, contracts and other material. |
| Notice or arrest | Depending on the facts and Section 35 BNSS, police may issue a notice or arrest where the statutory conditions are met. |
| Bail | Anticipatory bail may be considered before arrest. Regular bail becomes relevant after arrest. |
| Police report | The investigation concludes through the applicable police report or charge-sheet process. |
| Trial or other relief | The case may proceed to trial, discharge, quashing, compounding or another lawful resolution depending on the facts and court orders. |
What Do Courts Examine While Considering Bail?
Bail is decided on the individual facts of the case. Courts commonly consider the seriousness of the accusation, the role attributed to the accused, the material collected, the need for custodial interrogation, the risk of influencing witnesses or tampering with evidence, the risk of absconding and the accused's cooperation with investigation.
The existence of a commercial dispute, documentary evidence, the length of the investigation and the stage of the proceedings may also be relevant depending on the case.
What Should You Do After Receiving a 420 IPC or 318(4) Notice?
- Verify the notice. Check the police station, FIR or complaint number, sections invoked, date and officer details.
- Get the case record. Obtain the FIR or complaint where legally available and identify the exact allegations.
- Preserve evidence. Keep contracts, bank statements, messages, invoices and other original records.
- Do not threaten or pressure the complainant. Avoid communications that could later be used against you.
- Comply with a genuine notice. Do not ignore a lawful Section 35 BNSS notice.
- Consider bail promptly. Where arrest is reasonably apprehended, discuss anticipatory bail with a criminal lawyer.
What If the Complaint Is False or Exaggerated?
A person who believes a cheating complaint is false can respond through the appropriate legal process. Depending on the stage and the material available, possible remedies may include anticipatory or regular bail, a representation to the investigating officer, discharge, quashing or defence at trial.
The court will determine whether the allegations are supported by the evidence. A person should not assume that every disputed transaction amounts to cheating, but should also not ignore a genuine criminal allegation merely because a civil case is possible.
Frequently Asked Questions
The corresponding provision is Section 318(4) BNS for cheating and dishonestly inducing delivery of property, subject to the facts and statutory wording of the new law.
No. It is a non-bailable offence. Bail can still be granted by the competent court.
Yes. Section 318(4) is classified as cognizable and non-bailable.
The punishment may extend to seven years' imprisonment and fine.
Yes. Section 482 BNSS allows a person who reasonably apprehends arrest for a non-bailable offence to apply for anticipatory bail before the Court of Session or High Court.
No. Cognizability gives the police statutory powers, but arrest still has to comply with the BNSS arrest framework and the applicable necessity conditions.
It can where the facts disclose the ingredients of cheating. But a genuine later failure to perform a promise does not automatically prove dishonest intention at the beginning of the transaction.
In appropriate cases, a High Court may be approached under Section 528 BNSS. Whether quashing is available depends on the allegations, evidence and procedural stage.
Section 359 BNSS provides a statutory compounding route for Section 318(4) with the required court permission. The procedure depends on the stage of the case.
Default bail can arise under Section 187 BNSS if the investigation is not completed within the statutory period and the accused satisfies the conditions for statutory release. A 318(4) offence ordinarily falls in the 60-day category because its maximum punishment is seven years, subject to the exact sections invoked and the legal calculation.
No. A notice to appear is different from arrest. You should comply with a genuine notice and take legal advice about the response.
Yes, for offences and proceedings governed by the old IPC and preserved by the repeal and savings provisions. For offences committed after the BNS came into force, the BNS framework applies.
References
The following statutory and judicial sources were used as the legal reference framework for this article.
- Bharatiya Nyaya Sanhita, 2023, especially Section 318 and the repeal and savings provisions. India Code.
- Bharatiya Nagarik Suraksha Sanhita, 2023, especially Sections 35, 187, 359, 480, 482, 483 and 528. India Code.
- Indian Penal Code, 1860, including Section 420, for offences governed by the earlier law. India Code.
- Supreme Court of India decisions on cheating, dishonest intention, arrest and bail. Supreme Court of India.
- Arnesh Kumar v. State of Bihar, (2014) 8 SCC 273.
- Satender Kumar Antil v. Central Bureau of Investigation, (2022) 10 SCC 51.
- Supreme Court decisions distinguishing criminal cheating from a later breach of contract.
Disclaimer
This article is for general information only and does not constitute legal advice. The applicable law depends on the date of the alleged offence, the exact sections invoked, the facts, the evidence and the stage of the criminal case.
Before filing or defending a bail application, quashing petition, compounding application or criminal case, consult a qualified criminal lawyer and verify the current provisions on the official government and court websites.
Last reviewed: 2 October 2026. Criminal procedure and court decisions may change after publication. Always verify the current law before acting.