• In the case of Ghosh 1982 QB 1053, it establishes the two-limbed test for dishonesty.

Facts of the Case

  • The defendant (D), Ghosh, was a surgeon at a hospital who falsely claimed to have carried out an operation in order to claim money from it, when in fact the process was carried out by someone under the NHS.
  • The defendant was charged under the Theft Act 1968 s.20(2) and s.15(1), for trying to procure the execution of a cheque by deception and obtain money by deception.
  • During the trial, the judge directed the jury to an objective test of whether the conduct would be dishonest to reasonable people.
  • The defendant’s defence was that there had been no deception as he was entitled to the money, thus he appealed the original decision, which did not fall in his favour, to the Court of Appeals

Issues in Ghosh 1982 q b 1053

  • What was the meaning of dishonesty under the Theft Act 1968?

Held by The Court of Appeal

  • Dishonesty was declared to be a state of mind and not a course of conduct. The test held under the Theft Act 1968 was collectively subjective and objective.
  • The jury must begin by deciding whether the defendant’s conduct was dishonest in accordance with the standards of reasonable and honest people (Objective test).
  • If not, that would be the end of the matter.
  • Suppose it was dishonest in accordance with the standards. In that case, the jury has decided whether the defendant themselves realized that what they were doing was dishonest by those standards (subjective test).
  • If it was dishonest, then the defendant was dishonest in relation to the 1968 Act.

Lord Lane CJ

  • Lord Lane CJ, outlined the two-part test for dishonesty:
  • Was what was done dishonest according to the ordinary standards of reasonable and honest people?          
  • If not, the defendant is not to be held liable (guilty)
  • If yes, did the defendant realise that reasonable and honest people regard what he did as dishonest?
  • YES, then the defendant is guilty.
  • NO, the defendant is not guilty.