The Blue Jackal

The Blue Jackal is a story known throughout the Indian sub-continent.
Earliest reference.
The earliest reference to the Blue Jackal can be found in "Panchatantra", a collection of stories which depict animals in human situations (see anthropomorphism, Talking animals in fiction). In each of the stories every animal has a "personality" and each story ends in a moral.
The story.
The story of the Blue Jackal known through oral transmission doesn't vary much from one part of India to another. Although the creature is known variously as "Chandru", "Neelaakanth" or "Neela Gidhar" (literally, "Blue Jackal").
The most common version is told like this: