This article has been written by Varsha Thapa of 2nd year B.B.A. L.L.B. studying in Army Law College, Pune.
Criminal breach of trust is defines under section 405 of Indian Penal Code provides for the offence of criminal breach of trust. It is defined as when a person is entrusted (means when the property is given out of trust) with the property of another or have some kind of control or authority over the property of another, and if that person dishonestly misuses or converts the property for his own use, the person is said to commit the offence of criminal breach of trust.
In simple words, if a property is delivered to another person out of trust and that person dishonestly converts the property for his own use, he commits the offence of criminal breach of trust.
For example: A entrusts his watch to Y for three days. Y dishonestly converts the watch to his own use. Here, Y has committed the offence of criminal breach of trust under section 405 of IPC.
Note: Section 405 of IPC does not specifically provide the type of property. Thus, the offence of criminal breach of trust may be made against any type of property, either movable or immovable.
Elements of Criminal Breach of Trust
There are three main elements in order that a person has committed criminal breach of trust. They are as follows:
- A person must be entrusted with some property or should have any control or authority over the property.
- That the person:
(a) must have dishonestly misappropriated or converted the property for his own use, or
(b) should dishonestly use or dispose of that property or willfully make any other person to misappropriate the property. - Such an act must be done in violation of any law of trust or any legal contract of trust.
Punishment for Criminal Breach of Trust
Punishment for the offence of criminal breach of trust is provided under section 406 of IPC. It describes the punishment as committing the offence of criminal breach of trust will be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
Aggravated Forms of Criminal Breach of Trust
The Indian Penal Code provides three aggravated forms of criminal breach of trust. Those are:
- Criminal breach of trust by carrier, etc.
- Criminal breach of trust by clerk or servant.
- Criminal breach of trust by a public servant, banker, merchant or agent.
They are as follows:
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Criminal Breach of Trust by Carrier, etc.
Section 407 of Indian Penal Code states the criminal breach of trust by carrier, etc. It provides that if a person is entrusted with the property as a carrier, or warehouse-keeper and commits the offence of criminal breach of trust, then such person shall be punished with imprisonment of either description for a term which may extend to seven years and shall also be liable to fine.
Here, a carrier means a company that transports people or goods.
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Criminal Breach of Trust by Clerk or Servant
Section 408 of Indian Penal Code provides that when the offence of criminal breach of trust is committed by a clerk or servant or a person employed as a clerk or servant, such clerk or servant shall be punished with imprisonment of either description for a term that may extend to seven years and shall also be liable to fine.
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Criminal Breach of Trust by Public Servant, or by Banker, Merchant, or Agent
Section 409 of Indian Penal Code provides that if a banker, merchant, factor, broker, attorney, or agent commits the offence of criminal breach of trust, such a person 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.
Case Laws Related to Criminal Breach of Trust
- Ram Narain Popli vs Central Bureau of Investigation (2003)
In this case, the court defined the term ‘entrustment‘ of any property. Entrustment means handing over the possession of the property for some purpose that may not infer the proprietary rights.
- Rashmi Kumar vs Mahesh Kumar Bhada (1996):
In this case, the Supreme Court held that when the wife is entrusted with her Streedhan property and gives the dominion (authority) to her husband or any other member of the family, in such a case, if her husband or any other member of the family dishonestly misappropriated the property for their own use, the husband or other family member commits the offence of criminal breach of trust. Streedhan property is whatever a woman receives during her lifetime or a property specially belonging to a woman.
- R. K. Dalmia vs Delhi Administration (1962)
In this case, the court held that if the ‘partners’ are entrusted with some property and if they misappropriate the property for their own use, they commit the offence of criminal breach of trust under section 405 of IPC.
References