Residuary Powers (Art. 248)

Fraud
Section 17 defines fraud as follows:
Fraud means and includes any of the following acts done by a party to a contract, or by his connivance, or by his agent, to decieve another party thereto or his agent, or to induce him to enter the contract. Such acts include-

1.   He suggestion, as a fact, that of which the party knows or has reason to believe to be not true.

2.   Active concealment of a fact by the one who knows or has reason to believe to be true.

3.   Making a promise he does not intend to fulfill.

4.   Any act fitted to deceive.

5.    An act or omission as the law specifically declares to be fraudulent.

Illustrations
A sells, by auction, to B a horse which A knows to be unsound but does not tell anything to B. This is not fraud.
B is A's daughter who has just come of age. In this case, it is A's duty to tell B that the horse is unsound.
B says to A, "If you do not deny it, I will assume that the horse is good.". Here, A's silence is equivalent to speech.
A and B are both traders and A has private information about change in prices, which would affect B's willingness to proceed with contract. This is not fraud.

Intention to deceive is required to constitute fraud.

Suggestion of a fact
Derry vs Peek 1889, it was held not to be fraud because the defendants truly believe that permission would be granted by the board of trade because parliament had approved it.

Active concealment
Active concealment is different from passive concealment. Passive concealment merely means silence as to material facts. However, active concealment means making efforts to prevent the facts from reaching a party and this is fraud.
B R Chaudhary vs IOC 2004 - A dealer concealed his previous employment under govt. to get dealership. SC allowed the contract to be terminated.

Concealment by mere silence is not fraud
Sri Krishan vs Univ. of Kurukshetra 1976 - the candidate knew that he was short of attendance but did not write anything on the examination form. It was held not fraud because it was the job of the university to scrutinize the forms.

Silence may become fraud in certain cases - Duty to speak, Half truth, change of circumstances.

Making a promise without any intention to perform
DDA vs Skipper Construction Company 2000- A builder collected deposit money from more number of people than there were flats. SC held that since the builder knew that he cannot perform his promise and still took the money, he was doing fraud. He was held liable to pay interest even though there was no provision of interest on deposit.

Any other act fitted to deceive
Ningawwa vs Byrappa 1968 -  Husband got his illiterate wife to sign papers saying that he was mortgaging her two lands but actually he mortgaged four. This act was obviously done to deceive and was held to be fraud.