February 13, 2024

A particular sense of “breach” is a violation. It could be a vow, a set of rules, or, in our case, trust.

The word “trust” refers to confidence or belief in the qualities, abilities, strength, or veracity of another person. It makes sense to think of it as a fiduciary relationship.

what is criminal breach of trust?

  • A criminal breach of trust happens when someone entrusts something to someone else (the accused), and that someone intentionally causes harm or violates that property in order to be dishonest.
  • According to Section 405 of the Indian Penal Code, if someone is entrusted with or has dominion over any property, whether it be immovable or mobile, and they dishonestly use it for their own benefit, misappropriate it, or dispose of it against any legal contract, express or implied, that they have made regarding the discharge of that trust, or wilfully allow another person to do so, they are guilty of a criminal breach of trust.

criminal breach of trust examples

  • As the executor of a decedent’s will, A dishonestly violates the law, which requires him to distribute the assets in accordance with the will, taking them for his personal benefit instead. A has broken the law by committing a criminal breach of trust.
  • A manages a warehouse. Z gives A his furniture before leaving on a trip, with the understanding that it will be returned in exchange for payment of a predetermined amount for the warehouse space. A deceitfully markets the products. A has broken the law by committing a criminal breach of trust.

punishment for criminal breach of trust under ipc

  • The punishment for a criminal breach of trust is laid in Section 406 of the IPC.
  • The punishment consists of a fine, a term of imprisonment of any kind that can last up to three years, or both.

Aggravated Form of criminal breach of trust under indian penal code

Section 407 of the Indian Penal Code:

  • Anyone who is entrusted with the care of a carrier, wharfinger, or ware-housekeeper and misappropriates property faces both a fine and imprisonment of any kind, with the term being extended to seven years.

Section 408 of the Indian Penal Code:

  • Any clerk or servant who misappropriates property entrusted to them in their official capacity faces both a fine and a term of imprisonment of any kind that can last up to seven years.

Section 409 of the Indian Penal Code:

  • A public official faces both fines and imprisonment of any kind, with terms that can last up to seven years, if they misappropriate property.

criminal breach of trust under ipc: Important Case Rulings

In the State of UP v Babu Upadhya Case:

  • Superintendent of Police was the respondent. In order to look into a theft case, he travelled to a village. Lalji, a former Mohinuddinpur patwari, was going with him.
  • On his evening return, he witnessed Tika Ram bolting toward a field from one side of a canal. There seemed to be something tucked away in the folds of his dhoti.
  • The S.I. checked him since his motions were strange and found a bundle of bills. After taking the bundle, the accused gave them back to Tika Ram.
  • However, Tika Ram discovered that they were short by Rs. 250 when she tallied the money notes.
  • According to the Supreme Court, property was entrusted to someone else, and that person used it for his own purposes. As a result, a Section 409 IPC offense was committed.

In the case of Mohammed Sulaiman v Mohammed Ayub:

  • Section 405 of the Indian Penal Code prohibits actions taken against property that could be interpreted as either misappropriation, conversion, or use or disposal of the asset in violation of any stated or implied legal contract.
  • The rules in this section do not apply to a simple civil dispute.

In Rashmi Kumar v Mahesh Bhada Case:

  • The Supreme Court ruled that “Streedhan” fell inside the definition of property under Section 405 of the IPC.
  • The husband or other family member who uses for personal gain without the woman’s agreement is considered to have committed the crime of “Criminal Breach of Trust.”

All of the prerequisites for the criminal breach of trust offense must be met for it to be committed. Property entrustment is a requirement. The two parties ought to establish a fiduciary relationship as a result of it. The property must be under the accused’s control. And that by converting the property for his personal use or for any other arbitrary purpose with dishonest intention, he has betrayed the confidence of the other party. One extremely important issue is the existence of dishonest intentions. It is not necessary for the property to be mobile or stationary. It might be either.

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