In criminal law, it is considered a criminal crime to create fraudulent documents or attempt to correct them as if nothing is wrong. This felony is committed in order to conceal the facts contained in such a paper.
Forgery is the term used to describe such a criminal crime. For this act to occur, the documents are created fake, another person is forced to perform such an act without their agreement, or the genuine meaning of the documents is removed and replaced with a false one, resulting in the document having the incorrect meaning. In Britain, in order for a fake document to be considered a crime against document, it must have been used or acted upon. But Nepal has a different provision than that.
Forgery, fraud, and coercion committed through dishonesty are all considered crimes against papers under Nepalese law.
It is not required that the act be performed illegally or that any unlawful gain be obtained via the use of such phoney documents.
Even if such a phoney paper is not used or no criminal act is committed, it is still considered a crime against documents, and the offender will be punished only for generating such a fake document.
Making such a phoney paper is the start or preparation of a new unlawful crime. Our law has classified this type of crime at a separate level; simply creating fraudulent documents is regarded a full crime under the document.
Fraud is classified as a different offence under the Nepalese legal system, but such a provision does not exist in other countries.
In other countries, fraud-related offences are classified as forgery or cheating. Such offences should have been committed dishonestly in order to inflict harm to others or get illicit advantage for oneself or others by making such a phoney document.
Types and their definition
Forgery
It is regarded as the most widely known and serious crime. The legal system has not defined it using the elements. It has also not been established as a distinct or special legislation. Britain adheres to the Forgery and Counterfeiting Act of 1981.
To commit forgery, the person must have created a fake document, had the honest intention of using the fake document as the correct one, and performed the conduct in order to obtain an unlawful return to oneself or others, or to do or inflict harm to others. As a result, such forged documents should have been utilised to carry out the transaction.
In Nepal, simply making fraudulent documents constitutes a felony.
There is no legal requirement to utilise such forged documents.
Section 276: Prohibition of forgery: (1) No one shall commit or cause to be committed forgery.
For the purposes of sub-section (1), a person who creates a false document or electronic record, or a part or portion of a document or electronic record, with the intent to cause harm, injury, or damage to the public or to any person, or to benefit himself or herself or to any person, is considered to have committed forgery.
Explanation
- For the purposes of this Section, “document” refers to a signature, thumb impression, or seal affixed to any document, as well as any figure, word, date, or other information contained in that document.
- Making a false document includes dishonestly preparing a document or part of a document, making or transmitting an electronic record, or archiving digitals with the intention of giving the impression that the document was made, written, signed, or sealed by someone who did not actually do so (178).
- to, without lawful authorization or dishonestly, add or delete any material from, strike out, amend, or otherwise alter or make unclear any content of a document or electronic record,
- to cause any person to make, sign, seal, or alter any content of a document knowing that such person, by reason of being of unsound mind due to mental illness or intoxication of liquors or narcotics, or by reason of deception practised on him or her, cannot know the meaning of any contents set down in the document,
- to create or utilise any signed and delivered envelope, paper, or seal for a different work or purpose than the one for which it was signed and delivered.
- A person who commits the offence mentioned in sub-section (1) is subject to the following sentence:
- (a) A penalty of imprisonment for a period not exceeding ten years and a fine not exceeding one hundred thousand rupees, in the event of forgery of a document authenticated by the President,
- (b) A punishment of imprisonment for a term not exceeding eight years and a fine not exceeding …….. rupees, in the event of forgery of a court judgement or order,
- A penalty of imprisonment for a period not exceeding seven years and a fine not exceeding seventy thousand rupees, in the case of forgery of a government or public document other than that referred to in clauses (a) (b).
- A five-year prison sentence and a fine of not more than fifty thousand rupees for forgery of a document other than those mentioned in clauses (a), (b), and (c).
- A person who has already disposed of property gained by forgery shall be subject to an extra fine equal to the claimed value, in addition to the punishment referred to in subsection (3).
- Where a person gets any property by committing forgery, the person shall return such property to the concerned owner; and if such property has already been disposed of, the claimed amount of such property shall be recovered to the owner from other property of the offender.
- Section 277 prohibits the possession or use of a falsified document as genuine. (1) No person shall possess a counterfeit document with the aim to utilise it fraudulently.
- A person who commits or causes to be committed the offence referred to in sub-section (1) shall be sentenced to three years’ imprisonment and a fine of not more than thirty thousand rupees.
- A person who uses as genuine any document that he or she knows or has a reasonable reason to suspect is a forged document must be sentenced in the same manner as if he or she had fabricated the document.
- Section 278. Prohibition of making instrument for making forged document: (1) No person shall make, repair, purchase, exchange, or possess any seal or other instrument for making a forged document with the intention of using it in establishing or making a forged document, or with the knowledge or reasonable belief that it may be used in such an act.
- A person who commits or causes to be committed the offence referred to in sub-section (1) shall be sentenced to four years’ imprisonment and a fine of not more than forty thousand rupees.
- A person who presents as genuine any document that he or she knows or has a reasonable reason to believe to be forged is subject to the same sentence as if he or she had forged the document.
Section 278. Prohibition of making instrument for making forged document:
- No person shall make, repair, purchase, exchange, or possess any seal or other instrument for making a forged document with the intention of using it in establishing or making a forged document, or with the knowledge or reasonable belief that it may be used in such an act.
- A person who does, or causes to be committed, the offence.
- A person who commits or causes to be committed the offence referred to in sub-section (1) shall be sentenced to four years’ imprisonment and a fine of not more than forty thousand rupees.
Fraud
- It is a distinct form of crime with its own unique characteristics. This clause is analogous to forgery crimes. Section 279. Fraudulent behaviour is prohibited. (1) No one shall conduct, or induce to be committed, fraud.
- For the purposes of sub-section (1), a person who, with intent to disentitle any one, expires the statute of limitation or set date for the appearance of, or causes, in any way, loss, damage, or injury or
- Anyone who knowingly does an act stating that something has happened or been done that has not happened or been done in fact, or who makes or signs a document containing a false date, figure, or content or causes another person to sign such document, or who shows that he or she has entitlement to something in which he or she does not have such entitlement in fact, shall be considered to have committed the offence of fraud.
- A person who commits or causes to be committed the offence referred to in sub-section (1) shall be sentenced to three years’ imprisonment, a fine of not more than thirty thousand rupees, or both.
- A person who has already disposed of property gained via fraud shall be subject to an extra fine equal to the claimed value, in addition to the punishment referred to in subsection (3). (5) Where a person obtains any property through fraud, the person shall return such property to the concerned owner; and if such property has already been disposed of, the claimed amount of such property shall be recovered from the offender’s other property.
Section 280. Use of a fraudulent document as genuine:
- No person shall use a fraudulent document as genuine if he or she knows or has cause to suspect that it is so.
- A person who commits or causes to be committed the offence specified in sub-section (1) is subject to the same sentence as if he or she had committed fraud.
Section 281. Liability for penalty as accomplice:
A person who witnesses or writes a document knowing that it is counterfeit is deemed an accomplice to the offence of forgery.
- An accomplice referred to in sub-section (1) is subject to half the penalty specified in sub-section (3) of Section 273.
Section 282. Compensation ordered to be paid: If any loss or damage is caused to any person as a result of the commission of any act referred to in this Chapter, the offender shall be directed to pay fair compensation to the person who has incurred such loss or damage.
Section 283. Statute of limitations: No complaint shall be filed in relation to the offence of forgery of a public document after two years from the date of knowledge of the commission of such offence, or in relation to any of the other offences under this Chapter after six months from the date of knowledge of the commission of such offence.
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