Distinction between Cheating and Criminal Misappropriation are as follows:
1) Cheating is defined in Section 415 (See Section 415) while criminal misappropriation is defined in Section 403 (See. Section 403).
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2) In cheating, the wrong-doer induces the owner of the property to deliver it or any person to do or to omit an act, while, in criminal misappropriation, the owner of the property hands over the property innocently to the wrong-doer in good faith. Therefore, the wrong-doer misappropriates it.
3) In cheating, the deceitful and fraudulent act starts from the beginning and the offence completes when the wrong-door obtains the property, whereas, in criminal misappropriation in the beginning, the wrong-doer obtains the movable property from its owner with owner’s consent. Thereafter he misappropriates against the wish of the owner. When he misappropriates the property, then the offence is said to be completed.
4) Cheating may be done by any person while criminal misappropriation is generally done by near relatives, friends, joint owners etc.
5) In cheating, the wrong-doer may cause harm or injury to the deceived person in body, mind, reputation or property. While in criminal misappropriation, the wrong-doer can misappropriate the immovable property only. He does not involve the complainant in body, mind, reputation, or immovable property.
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6) Dishonesty and fraud are the essential elements of cheating. Dishonesty is the essential element of the criminal misappropriation.
7) 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 misappropriation is imprisonment of either description for a term which may extend to two years or with fine or with both.