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Mr. Tulsi has also submitted that the essential ingredients of the offence of cheating as contained in Section 415 IPC are:-

a) Dishonest inducement; b) Delivery of any property as a result of inducement; c) Damage or harm to the person induced.

Mr. Tulsi has submitted that each of such ingredients of the said offence is satisfied on the face of the allegations made in the FIR. There is specific allegation that the representation was made by the officers of the Bank with regard to the existence of stock worth Rs. 17.50 crores for hypothecation to the Bank and credit facility was granted to the tune of Rs. 17.50 crores on the belief of due hypothecation of stock. There is also allegation in FIR that stock worth Rs.12 crores had been fraudulently or dishonestly used or disposed of without any payment to the Bank. Such allegations constitute ingredients of cheating, causing damage to the Bank which was induced because of false statement made by DAIL and its officials. Mr. Tulsi has submitted that entrustment of physical possession of the property is not essential for the offence defined in Section 405 IPC. The expression "whoever being in any manner entrusted with property or with any dominion over property", clearly negatives the contention that since physical possession was not exclusively transferred to the Bank, there can not be a case of entrustment. If the offence under Section 405 IPC is interpreted in the aforesaid manner, it will open the flood gate for Bank frauds, corruption amongst public servants and will endanger the smooth flow of trade and commerce. In support of this contention, Mr. Tulsi has relied in the decision of this court in The Superintendent and Remembrance of Legal Affairs, West Bengal Vs. S.K.Roy (1971 (4) SCC 230) It has been held in the said decision that: