Criminal Breach of Trust IPC
Criminal Breach of Trust – IPC
Statutory Provision
Section 405 IPC – Definition
Sections 406–409 IPC – Punishments depending on circumstances
1. Definition (Section 405 IPC)
A person is said to commit criminal breach of trust when:
Property is entrusted to him, or he has dominion over property.
He dishonestly misappropriates, or
Converts it to his own use, or
Uses/disposes of it in violation of:
Any direction of law prescribing mode of discharge of trust, OR
Any legal contract made touching the discharge of trust.
👉 In simple words: Misusing property entrusted to someone, dishonestly, against law/contract.
2. Essential Ingredients
To constitute criminal breach of trust, prosecution must prove:
Entrustment of property (or dominion over property).
Dishonest intention (Section 24 IPC defines dishonest).
Misappropriation, conversion, use, or disposal of property.
Such use is against direction of law or contract.
📌 Mere failure to return money/property is not criminal breach of trust unless dishonest intention is proved.
3. Punishments
Section 406 IPC: General punishment → Imprisonment up to 3 years, or fine, or both.
Section 407 IPC: Criminal breach of trust by carrier, warehouse-keeper, wharfinger → Up to 7 years + fine.
Section 408 IPC: Criminal breach of trust by clerk or servant → Up to 7 years + fine.
Section 409 IPC: Criminal breach of trust by public servant, banker, merchant, agent → Life imprisonment or up to 10 years + fine.
4. Difference Between Criminal Breach of Trust & Theft
| Point | Theft (Sec. 378 IPC) | Criminal Breach of Trust (Sec. 405 IPC) |
|---|---|---|
| Property | Taken without owner’s consent | Property is entrusted by owner |
| Dishonest Intention | At the time of taking | Developed after entrustment |
| Consent | No consent of owner | Entrustment with consent |
| Example | Stealing money from pocket | Bank manager misusing depositor’s money |
5. Important Case Laws
Jaswantrai Manilal Akhaney v. State of Bombay (AIR 1956 SC 575)
Entrustment is the core ingredient. Misuse of funds entrusted amounts to breach of trust.
R. Venkatkrishnan v. CBI (AIR 2009 SC 1713)
Bank officials misused depositors’ funds → Held guilty under Sec. 409 IPC.
Somnath v. State of Rajasthan (1972 Cr LJ 897)
Clerk entrusted with money but did not deposit in treasury; instead used for personal purpose → Criminal breach of trust.
Superintendent & Remembrancer of Legal Affairs v. S.K. Roy (AIR 1974 SC 794)
Mere negligence or failure to return property is not breach of trust unless dishonest intention is proved.
Cheat Ram v. State of Rajasthan (2003 Cr LJ 3250)
Misappropriation of money collected for cooperative society → Conviction upheld.
6. Summary Table
| Aspect | Section | Explanation |
|---|---|---|
| Definition | Sec. 405 | Entrustment + dishonest misappropriation/use |
| Punishment (general) | Sec. 406 | 3 years/fine/both |
| By carrier/wharfinger/warehouse | Sec. 407 | 7 years + fine |
| By clerk/servant | Sec. 408 | 7 years + fine |
| By public servant, banker, agent | Sec. 409 | Life or 10 years + fine |
| Key Case Laws | Jaswantrai, Venkatkrishnan, Somnath, S.K. Roy | Defined scope and essentials |
✅ In short: Criminal breach of trust occurs when property entrusted to someone is dishonestly misused, unlike theft where property is taken without consent.
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