IPC Section 405 - Criminal Breach of Trust
Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, 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 he has made touching the discharge of such trust, or wilfully suffers any other person so to do, commits "criminal breach of trust".
Official Text
“Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, 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 he has made touching the discharge of such trust, or wilfully suffers any other person so to do, commits "criminal breach of trust".”
Legal Analysis
Elements to Prove:
- The accused was entrusted with property or had dominion over it.
- The property was entrusted in a fiduciary capacity.
- The accused dishonestly misappropriated or converted the property.
- The misappropriation was in violation of legal obligations.
- The accused had dishonest intention.
Potential Defenses:
- No entrustment of property.
- No dishonest intention.
- Property was used according to terms of trust.
- Accused acted in good faith.
- Property was lost due to circumstances beyond control.
Practical Examples
What Constitutes the Offense:
A bank employee misusing customer deposits, a lawyer misappropriating client funds, a trustee using trust property for personal benefit.
What Doesn't Constitute:
A person failing to return borrowed money due to financial difficulties, accidental loss of entrusted property.
Important Case Laws
State of Gujarat v. Jaswantlal Nathalal (1968)
The Supreme Court held that for criminal breach of trust, the accused must be entrusted with property and must dishonestly misappropriate it. The key element is the dishonest intention.
R.K. Dalmia v. Delhi Administration (1962)
The court emphasized that criminal breach of trust requires proof of entrustment and dishonest misappropriation. Mere failure to return property is not sufficient.
Punishment
Imprisonment up to 3 years, or fine, or both
Related Information
Connected Sections:
This is the basic section for criminal breach of trust. Sections 406-409 provide enhanced punishments for specific categories.
Procedural Aspects:
The case is triable by any Magistrate. Prosecution must prove entrustment and dishonest misappropriation.