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Criminal Breach of Trust & Misappropriation of Property

Criminal Misappropriation (Section 403):

A person who dishonestly misappropriates or converts for his own use any movable property, is guilty of criminal misappropriation of property. The punishment is imprisonment for two years or fine or both. A dishonest misappropriation for a small interval of time also amounts to misappropriation. If the person takes the property to protect it or to restore it from the owner, he is not guilty. But if he does not restore it and if he does not return the owner using reasonable means, he becomes guilty.



Eg:

1) A finds a bundle of currency notes on the highway. He picks up the bundle with an intention to hand it over to the real owner. He is not guilty. But after taking home he changes his mind and uses for his own purposes. He is guilty when he changes his mind.

2) A finds a valuable ring on the road, A takes it without any idea of finding the owner and handing it over to him. He is guilty.

3) A and B are joint owners, A sells the house without B's consent and appropriates the entire amount for himself. He is guilty of criminal misappropriation.

Criminal breach of Trust (Sec-405):

Sec- 405 makes the criminal breach of trust an offense.

If a person, entrusted with the property, or any dominion over property, dishonestly misappropriates or converts to his own use or disposes of, against law he is guilty of criminal breach of trust. This is embezzlement according to English law. It is important that the property must be" entrusted to the accused, and he must dishonestly misappropriate it”. If Persons entrusted dishonestly misappropriate, they are guilty.

Eg:

1) In Prize competition, the prize winners were not given the prizes. A was tried on the ground of criminal breach of trust.

2) A, a revenue cashier, appropriates Rs. 5000 instead of remitting to the treasury. This is criminal breach of trust.

Ramaswamy Nadar

V

State of Madras,

The Supreme Court held that there was no breach of trust, as he had not appropriated any money for his own purposes.

Dalmia

 V

 Delhi Administration

One partner was given authority by other partners to collect the property of the firm, he is entrusted with dominion over property & if he dishonestly misappropriates, he is guilty of criminal breach of trust.

Punishment (Sec-406):

Imprisonment up to 3 years or fine or both.





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