Fraudulently / Fraudulenter /

Fraudulently: Intent to Defraud

“Fraudulently” is a term of art in Indian criminal law with a precise technical meaning: doing an act with intent to defraud but not otherwise. This deceptively simple definition conceals significant complexity. It requires not just deception, but deception with an intent to cause harm or gain an advantage. The word appears repeatedly in the BNS 2023—particularly in offences involving documents, wills, and financial instruments—marking the boundary between an honest mistake and a criminal act.

Components of Fraudulent Intent

Courts have identified two essential elements of “intent to defraud”: (a) Intent to deceive—making or using a false representation; and (b) Intent to cause prejudice or to gain advantage—the deception must be aimed at harming another’s interests or advancing the deceiver’s own interests. The prejudice need not actually result; the intent to cause it is sufficient. In this sense, the offence is complete when the fraudulent act is done, not only when the victim suffers loss.

Fraudulently vs. Dishonestly: The Key Distinction

Both terms describe culpable mental states, but they operate differently: Dishonestly (BNS 2(10)) is confined to property—it involves wrongful gain or loss of property. Fraudulently (BNS 2(14)) is broader—it can encompass deception of any kind, affecting any interest, not just property. For example, causing someone to sign a document that alters their legal rights (even without direct property gain to the accused) may be fraudulent. Some BNS offences (like forgery, BNS Section 336) use both terms to capture the full range of culpable intent.

Application in Specific Offences

Forgery (BNS Section 336): Making a false document dishonestly or fraudulently. Fraudulent Deeds and Dispositions of Property (BNS Section 420): Fraudulently executing a deed of transfer or making a disposition to defraud creditors. Fraudulent Application for Succession Certificate (ISA Section 386): Obtaining a succession certificate by false statement. Fraudulent Insolvency Proceedings (Insolvency and Bankruptcy Code): Making false disclosures during insolvency, with fraudulent intent.

Proving Fraudulent Intent

Fraudulent intent is a state of mind proved by circumstantial evidence in most cases—there are rarely direct admissions. Courts infer intent from: the nature of the document/act; the surrounding circumstances; the advantage sought; and the subsequent conduct of the accused. In S.W. Palanitkar v. State of Bihar (2002) 1 SCC 241, the Supreme Court held that fraudulent intent must be specifically pleaded and proved—it cannot be presumed from the mere falsity of a statement. Good faith belief in the truth of a representation negates fraudulent intent.

“Fraudulently means with intent to defraud — both deception and the intent to harm or gain advantage must be present. Fraud without intent to harm is a contradiction in terms.”