In Brief
Rekha Jain's husband was accused of cheating by taking away 2 kg of gold jewellery through misrepresentation. Rekha was later charged as an accused under Section 420 IPC (cheating) because the jewellery was found with her. The Supreme Court allowed her appeal and quashed the Section 420 proceedings, holding that criminal prosecution for cheating requires proof of personal dishonest inducement by the accused. Since the FIR contained no allegations that Rekha herself induced the complainant to part with the jewellery—only that her husband did—she could not be prosecuted for cheating. Mere possession of property obtained through cheating is insufficient.
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