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Criminal Breach of Trust

Criminal breach of trust, defined under Section 405 of the Indian Penal Code, occurs when a person entrusted with property dishonestly misappropriates or converts it for personal use, violating legal contracts or laws. Key elements include entrustment of property, dishonest misappropriation, and violation of trust terms. Punishment for this offense can extend to three years of imprisonment or fines, as outlined in Section 406 of the IPC.

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13 views2 pages

Criminal Breach of Trust

Criminal breach of trust, defined under Section 405 of the Indian Penal Code, occurs when a person entrusted with property dishonestly misappropriates or converts it for personal use, violating legal contracts or laws. Key elements include entrustment of property, dishonest misappropriation, and violation of trust terms. Punishment for this offense can extend to three years of imprisonment or fines, as outlined in Section 406 of the IPC.

Uploaded by

Rimsha Mehvish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Definition of Criminal Breach of Trust

Criminal breach of trust is defined under Section 405 of the Indian Penal
Code (IPC). It occurs when a person entrusted with property, or with any
dominion over property, dishonestly misappropriates or converts that property
to their own use, 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 they have made
touching the discharge of such trust1.
 The offense of criminal breach of trust under Section 405 of the Indian
Penal Code (IPC) consists of several key elements. Here are the main
elements:
1. Entrustment: There must be an entrustment of property or dominion
over property. This means that the accused must have been given control
or possession of the property by someone else.
2. Property: The property in question can be movable or immovable. It
includes money, goods, or any other valuable security.
3. Dishonest Misappropriation or Conversion: The accused must have
dishonestly misappropriated or converted the property to their own use.
This means using the property in a way that is contrary to the terms of the
trust.
4. Violation of Legal Contract or Law: The accused must have used or
disposed of the 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 they have made touching the discharge of such
trust.
5. Dishonest Use or Disposal: The accused must have dishonestly used or
disposed of the property. This involves an intention to cause wrongful
gain to oneself or wrongful loss to another.
Example
Consider a scenario where A, a cashier at a company, is entrusted with company
funds to deposit in the bank. Instead of depositing the money, A uses it for
personal expenses. Here, A has committed criminal breach of trust as all the
elements are satisfied: entrustment of property, dishonest misappropriation, and
violation of the terms of the trust.

1
Illustrations
Here are a few illustrations to help understand criminal breach of trust:
1. A, a warehouse keeper, is entrusted by Z with goods worth ₹10,000 to
be kept safely. A dishonestly sells the goods and appropriates the
proceeds. A has committed criminal breach of trust.
2. B, a banker, is entrusted with a sum of money by C to be deposited in
C’s account. B dishonestly uses the money for personal expenses. B has
committed criminal breach of trust.
Punishment
The punishment for criminal breach of trust is prescribed under Section 406 of
the IPC. It states that 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 both23.
Case Laws
Some notable case laws related to criminal breach of trust include:
1. Varala Bharath Kumar vs The State Of Telangana: This case dealt
with the misappropriation of funds by a public servant.
2. Priti Saraf vs State Of NCT Of Delhi: This case involved the dishonest
use of entrusted property by a business partner.
3. Pradeep Kumar vs State Of Bihar: This case highlighted the misuse of
funds by an agent.
These cases illustrate various scenarios where criminal breach of trust was
established and the legal consequences that followed.

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