Section 405 IPC defines criminal breach of trust. It states that in order to constitute the offence of criminal breach of trust, it must be established that the accused was entrusted with property or with dominion or power over the property of another and that that he dishonestly misappropriated it or converted it to his own use.
Section 405 in The Indian Penal Code – Criminal breach of trust.
Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, or wilfully suffers any other person so to do, commits “criminal breach of trust”.
Ingredients
- Entrustment of the property by one person to another or any dominion over property.
- Such entrustment must be in trust.
- Misappropriation or conversion by the person who received the property in trust of his own use.
- There must be the violation of any direction, or mode which is prescribed by law for discharging the trust, or any legal contract which is made for the discharge of trust.
- The property must be misappropriated or converted dishonestly.
“Entrustment” means handling over the property by one person to the another person in such a manner so that the person on whose behalf the property is handed over continuous to be owner. [Surendra Pal Singh vs. State of Uttar Pradesh, AIR 1957 All 122] The word entrusted in the section is very important unless there is entrustment, there can be no offence under the section. [Ramaswami Nadar v. State of Madras, AIR 1958 SC 56]
Section 405 IPC requires doing of something with respect to property which would indicate either misappropriation or conversion or its use or disposal in contravention of any legal contract, express or implied. A mere dispute of civil nature will not attract the provisions of this section. [Mohammed Sulaiman vs Mohammed Ayub, AIR 1965 SC 1319]
Section 406 in The Indian Penal Code – Punishment for criminal breach of trust.
Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
Section 407 in The Indian Penal Code -Criminal breach of trust by carrier, etc.
Whoever, being entrusted with property as a carrier, wharfinger or warehouse-keeper, commits criminal breach of trust in respect of such property, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Section 408 in The Indian Penal Code – Criminal breach of trust by clerk or servant.
Whoever, being a clerk or servant or employed as a clerk or servant, and being in any manner entrusted in such capacity with property, or with any dominion over property, commits criminal breach of trust in respect of that property, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Section 409 in The Indian Penal Code – Criminal breach of trust by public servant, or by banker, merchant or agent.
Whoever, being in any manner entrusted with property, or with any dominion over property in his capacity of a public servant or in the way of his business as a banker, merchant, factor, broker, attorney or agent, commits criminal breach of trust in respect of that property, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Difference between Criminal Misappropriation and Criminal Breach of Trust
In criminal misappropriation, the property comes into possession of the accused in some natural manner. Whereas in criminal breach of trust the property comes in possession of the accused either by an express entrustment or by some process.
