V. Ganesan vs. State rep. by the Sub Inspector of Police & Anr. (SC)

Penal Code, 1860–Sec. 420 [Corresponding Sec. 318(4) of BNS, 2023]–Constitution of the offence–Money was advanced for movie making and initially the agreement was to share the profits–Second tranche of money was transferred when the project could not be completed for want of funds–Movie was allowed to be released after the appellant gave two post dated cheques–It cannot be said that the appellant made a false promise that he would make a movie with the aid of funds received by him–Cheques were not by way of inducement to lend the money or invest the money in the proposed movie–Dishonour of cheques, though may give right to initiate the proceedings u/s. 138 of the N.I. Act, would not, ipso facto, amount to an offence of cheating–Proceedings are liable to be quashed.