The offences of criminal breach of trust (Section 406 IPC) and cheating (Section 420 IPC) have specific ingredients. In order to constitute a criminal breach of trust (Section 406 IPC).

1)    There must be entrustment with person for property or dominion over the property, and

2)    The person entrusted:

a)    dishonestly misappropriated or converted property to his own use, or

b)    dishonestly used or disposed of the property or willfully suffers any other person so to do in violation –

i.      any direction of law prescribing the method in which the trust is discharged and

ii.    of legal contract touching the discharge of trust (see: S.W.P. Palanitkar v. State of Bihar, (2002) 1 SCC 241): (AIR 2001 SC 2960).

Similarly, in respect of an offence under section 420 IPC, the essential ingredients are:

1)      deception of any person, either by making a false or misleading representation or by other action or by omission;

2)      fraudulently or dishonestly inducing any person to deliver any property, or

3)      the consent that any persons shall retain any property and finally intentionally inducing that person to do or omit to do anything which he would not do or omit (see: Harmanpeet Singh Ahluwalia v. State of Punjab, (2009) 7 SCC 712: (2009) Cr.L.J. 3462 (SC))

Further, in both sections, mens rea i.e. intention to defraud or the dishonest intention must be present from the very beginning or inception without which either of these sections cannot be invoked.