LAWS AND PROVISIONS RELATING TO CRIMINAL BREACH OF TRUST UNDER IPC
INTRODUCTION
Breach of trust is said to be when a trustee distributes trust assets to a beneficiary to someone who is not entitled to them. This breach of trust. i.e. violation of trust is criminalized by IPC in order to protect the interest of the owner of the property. when a person puts his trust on another in furtherance that he transfers possession of his property .The other person thereafter does some act so as to breach his trust, this breach of trust is an offence and is punishable. There are many people around us who can act this act of breach of trust, some are under an obligation to act under some contract and take advantage of their position to perform breach of trust.
ANALYSIS OF PROVISIONS
Criminal Breach of trust under Indian Penal Code is explained in Section 405-409.
Section 405 clearly construes the definition of Criminal Breach of trust which means dishonest use or disposition of one’s property which he has given to another in trust.
Key elements to prove Criminal Breach of trust can be determined as:
- Dishonest Use or Disposition
- The property must be entrusted
- Misappropriate use of the entrusted property in a way that the property is converted by the accused for his use.
It is very important for a criminal breach of trust that the breach is done with dishonest intention. Dishonesty is as defined in section 24 IPC, causing wrongful gain or loss, which again is defined in section 23 IPC. Criminal Breach of Trust is simply ‘Dishonest Intension’ or ‘Conversion of property for own use’ which is Criminal Misappropriation u/s 403. But there is a major line which is making Criminal Misappropriation different from Criminal Breach of Trust i.e. ‘Entrustment’ of property. Entrustment is given some special status in Criminal Breach of Trust as the accused is entrusted with control over the property. Entrustment means voluntary handling over of the custody or management of the property to someone for some purpose The property although is not defined whether movable or immovable property is entrusted. Therefore it covers all the properties movable or immovable in nature. In a leading case[1] Supreme court held that “the word “property” is used in the Indian Penal Code in much wider sense than the expression movable property. Whether the offence defined in the particular section of IPC can be committed in respect of any particular properly but on the fact whether that particular kind of property can be subject to acts covered by that section”.
Punishment for Criminal Breach of Trust is defined under Section 406 as imprisonment which may extend upto 3 years or fine or both, cognizable offence and can be compoundable on owner’s part in respect of which criminal breach of trust has been committed.
Criminal Breach of Trust can be of any form , which are given from section 407-409. Criminal Breach of Trust by Carrier, Warehouse keeper, clerk, public servant are dealt with sections 407-409 respectively.
FORMS OF CRIMINAL BREACH OF TRUST:
- Carrier / Warehouse keeper/ Wharfinger – section 407 deals with all the categories of persons who either receive goods on contractual bases or are responsible to keep the goods safe. According to this section if any of the abovementioned persons are found guilty of criminal breach of trust they are liable for imprisonment which may extend to 7 years and shall also be liable for fine.
The section reads as:
Whoever, being entrusted with property as a carrier, wharfinger or warehouse-keeper, commits criminal breach of trust in respect of such property, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
- Clerk / Servant- Section 408 deals with categories of persons who are entrusted with their owner’s property and in case of any dishonest misappropriation of the owner’s property is done then it will be punishable with imprisonment which may extend upto 7 years or fine or both.
The section reads as :
Whoever, being a clerk or servant or employed as a clerk or servant, and being in any manner entrusted in such capacity with property, or with any dominion over property, commits criminal breach of trust in respect of that property, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
- Public Servant/ Banker/ Merchant/Agent – Section 409 does not deals with a specific categories of persons and all the mentioned are liable for imprisonment which may extend upto 10 years and fine if found guilty of criminal breach of trust.
The section reads as:
Whoever, being in any manner entrusted with property, or with any dominion over property in his capacity of a public servant or in the way of his business as a banker, merchant, factor, broker, attorney or agent, commits criminal breach of trust in respect of that property, shall be punished with 1[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.
CONCLUSION
In order to attract the offence of Criminal Breach of Trust it is very important that there is entrustment of property, dishonest misappropriation , dishonest use of the property. Also there are many forms of Criminal breach of trust and punishments which are defined in IPC. In order to attract the offence all the ingredients of the offence must be fulfill.
[1] R K Dalamia V Delhi Administration AIR 1962 SC 1821
