"Fraud" defined
Section 17 of the Indian Contract Act, 1872 deals with "Fraud" defined. "Fraud" means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent1 , with intent to deceive another party thereto of his agent, or to induce him to enter into the contract:— (1) the suggestion, as a fact, of that which is not true, by on The Act came into force on 01 Sep 1872.
"Fraud" means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent1 , with intent to deceive another party thereto of his agent, or to induce him to enter into the contract:—
(1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
(2) the active concealment of a fact by one having knowledge or belief of the fact;
(3) a promise made without any intention of performing it;
(4) any other act fitted to deceive;
(5) any such act or omission as the law specially declares to be fraudulent.
Explanation.—Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speak2 , or unless his silence is, in itself, equivalent to speech.
Illustrations
(a) A sells, by auction, to B, a horse which A knows to be unsound. A says nothing to B about the horses unsoundness. This is not fraud in A.
(b) B is As daughter and has just come of age. Here, the relation between the parties would make it As duty to tell B if the horse is unsound.
(c) B says to A—"If you do not deny it, I shall assume that the horse is sound." A says nothing. Here, As silence is equivalent to speech.
(d) A and B, being traders, enter upon a contract. A has private information of a change in prices which would affect Bs willingness to proceed with the contract. A is not bound to inform B.
Section 17, The Indian Contract Act, 1872 (Act 9 of 1872).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Mohana Subramani v. Sindhu T.
Court's Decision & Legal Precedent
HC Final Order order-1.pdf 2019-05-28 DATE VERIFIED. Kerala DB Harilal/Annie John. Mat.Appeal 209/2019. Extracts Contract Act 17(2): fraud requires active concealment of a fact the other party is induced by; calling a residence 'petitioner's house' is not a representation of title, so the facts did not constitute fraud. Map contract-act 17 only. Do not pad Contract 10.
On this section: Fraud under s.17(2) requires active concealment of a fact by which the other party is induced; calling a residence the 'petitioner's house' is not a representation of title (Mohana Subramani).
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… It is submitted that apart from use of adjectives such as 'fraudulent' etc., qua the assignment deed, no actual material particulars have been given with regard to the 'fraud'. It is submitted that the pleadings in para 31 and para 46 do not satisfy the test of 'fraud' under Section 17 of the Indian Contract Act, 1872. 6.7 It is vehemently submitted by the learned Senior Advocates appearing on behalf of the respondents herein that as per the settled preposition of law pleading without any material particulars would not tantamount to a pleading of 'fraud'. Reliance is placed on the decisions of …
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… entered into by a minor (without following the procedure prescribed under the Guardian and Wards Act, 1890) or a lunatic, which would be with a party incompetent to enter into a contract. 8.13 The civil aspect of fraud can be adjudicated by an arbitral tribunal. The civil aspect of fraud is defined by Section 17 of the Indian Contract Act, 1872 as follows : "17. Fraud defined. – Fraud means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent, with intent to deceive another party thereto or his [agent], or to induce him to enter into the contract: (1) …
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… The said judgment indicates that given the case law since N. Radhakrishnan (supra), it is clear that N. Radhakrishnan (supra), as a precedent, has no legs to stand on. If the subject matter of an agreement between parties falls within section 17 of the Indian Contract Act, 1872, or involves fraud in the performance of the contract, as has been held in the aforesaid judgment, which would amount to deceit, being a civil wrong, the subject matter of such agreement would certainly be arbitrable. Further, we have also held that merely because a particular …
Questions about Section 17
What have the courts held on Section 17 of the Indian Contract Act?
Mohana Subramani v. Sindhu T. (28 May 2019) is the leading judgment on this section among those set out below: Fraud under s.17(2) requires active concealment of a fact by which the other party is induced; calling a residence the 'petitioner's house' is not a representation of title (Mohana Subramani).
How do I find court cases under Section 17 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 17, section 17 Contract Act, section 17 of the Indian Contract Act. People searching for it also type indian contract act 17. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Mohana Subramani v. Sindhu T. (28 May 2019).
What should I read with Section 17 of the Indian Contract Act, and has it changed?
2 other provisions in this corpus refer back to it.
When did Section 17 of the Indian Contract Act come into force?
Section 17 of the Indian Contract Act, cited as Contract Act 17, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
- 73. Compensation for loss or damage caused by breach of contract1822 words
- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.