Offenses against property are covered by Chapter XVII of the Indian Penal Code of 1860.

Under this Chapter, criminal breach of trust is regarded a crime against property, and Sections 405 to 409 deal with the specific provisions relating to criminal breach of trust.

The definition of criminal breach of trust provided under Section 405 can be interpreted as any fraudulent use or disposition of assets by one person to whom another individual has entrusted his assets, and the latter must have suffered a breach of trust as a result of this fraudulent use or disposition, as the act must have been committed in the discharge of such trust.

According to Section 405, requires a person to transfer ownership of a property or dominion over it to others. Furthermore, this is essentially a confidence that the victim places in the perpetrator with regard to his property.

Second, the criminal must misappropriate or transform the property for his or her own benefit. He may even fraudulently utilize or dispose of that property by violating a statute intended to control or direct the normal functioning of the law. This could result in a breach of any express or implied contract between the defendant and the victim.

ESSENTIALS

• Entrustment

Entrustment refers to the transfer of property control from one person to another in such a way that the person to whom the property is transferred retains ownership. The term “entrustment” is crucial in defining the crime of criminal breach of trust.

• Property

The defendant must use a trust or use authorities to secure the property. A property entrustment is required. In the case of Ramaswami Nadar State of Madras, the Supreme Court decided that the basic need of entrustment must be present in order to satisfy the basics of a criminal breach of trust under Section 405.

• Dominion Over Property

The domain is the supreme right of property inland; it is the most complete and comprehensive right of commodities or property, and it is a legal notion originated from Roman law’s dominium. The domain refers to both the property’s right of ownership and its possession or use. It is the total and absolute ownership of a piece of property or land. The government has the authority to seize property without or with authorization in certain circumstances.

• Misappropriation

The basic aspect of this case is ‘dishonest misappropriation.’ Dishonesty is defined as causing unjust gain or loss to a person, as described in Section 24 of the IPC.

 In Section 23 of the IPC, the terms “wrongful gain” and “wrongful loss” are defined.

It is not enough to prove that the money was not accounted for or mismanaged in order to commit a crime.

It must be accepted that the defendant used the property inadvertently for his personal benefit or that of others without first obtaining permission from the owner.

Dishonest intent to misappropriate is a key fact to establish in order to prosecute a criminal breach of trust allegation.

In the case of Krishan Kumar Union vs.  Union of India, it was stated,

Misappropriation happens when a person illegally sets apart or assigns to another person usage that should be assigned to another person to the exclusion of the owner in an actus rea circumstance.

• Conversion

• Misappropriation

• Property disposition

• User

INFERENCE        

There is a legal contractual link between the accused and the actual owner of the property in the instance of criminal breach of trust.

 It pertains to the conversion of property held in a fiduciary capacity by a person.

Furthermore, the owner, also known as the debtor, and the defendant should have a fiduciary relationship.

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