Distinction between Cheating and Criminal Breach of Trust are as follows:
1) Cheating is defined in Section 415 (See Sec. 415) while Criminal breach of trust is defined in Section 405 (See Sec. 403).
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2) In cheating wrong-doer induces the owner of the property to deliver it or any person to do or to omit an act while in trust, the owner of the property entrusts the property to the wrongdoer having ‘trust’ and belief in him.
3) In the case of cheating, the dishonest intention starts with the very inception of the transaction, but, in the case of Criminal breach of trust, the person who comes into possession of but retains it or converts it to his own use against the terms of the contract.
4) Cheating is voluntary but the Criminal breach of trust is purely on the basis of inducement with dishonest intention.
5) There can be no consent by a person who is cheated while a trustee obtains possession of property by free consent.
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6) The act of cheating itself involves conversion. The essence of Criminal breach of trust is the dishonest conversion of the property entrusted.
7) Cheating may be done by any person while Criminal misappropriation is generally done by bailees, carriers, executors, agents, employees etc.
8) In cheating the deceitful and fraudulent act starts from the beginning and the offence completes when the wrong-doer obtains the property. But, the act of criminal breach of trust can be attributed, when the entrusted property was misappropriated. In the beginning, ie., when the property is entrusted, no offence can be attributed.
9) Cheating can be played against immovable property only, while criminal breach of trust can be played against movable or immovable property.
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10) In cheating property is removed from the possession of the owner by the cheat. In criminal breach of trust, the property is entrusted by the owner to the offender with a good faith and trust. Therefore the wrong-doer misappropriates it causing breach of trust.
11) Punishment for cheating is imprisonment of either description for a term which may extend to one year or fine or both while punishment for criminal breach of trust is imprisonment of either description for a term which may extend to three years or with fine, or with both.