IPC Section 406: In India, Criminal Breach of Trust (CBT) is defined under Section 406 of the Indian Penal Code (IPC) and is considered as a criminal offence. The section defines CBT as the act of dishonestly misappropriating or converting any property which is already in an individual’s possession or trust, for their own use. This section applies to anyone who holds any property, including an agent, banker, trustee, guardian, executor, etc.
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What is said in IPC 406?
As per Section 406 of the IPC, “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 both.” The term “criminal breach of trust” is defined as when a person, who is in a position of trust, misappropriates or converts to his own use the property that he is entrusted with, or dishonestly uses or disposes of the property in violation of any direction of law imposing a duty on him, or of any legal contract, express or implied, made with him.
An act of criminal breach of trust is committed if the following conditions are met:
- The accused was entrusted with property, or was in a position of dominance with respect to such property
- The accused dishonestly misappropriated or converted the property for their own use or used the same for a purpose other than that for which they were entrusted with the property
Practical Aspects of IPC 406
In order to prove that the accused committed the act of CBT, the prosecution must establish that the accused had the intent to deceive and that they had used the property in a manner that was inconsistent with the terms of the trust.
The punishment for criminal breach of trust is imprisonment for a term which may extend to three years, or with fine, or both. The punishment for the offence is more severe if the property is of a larger value. If the property is worth more than INR 100, the accused may be punished with imprisonment for a term that may extend to seven years and with fine.
Ingredients of criminal breach of trust
The ingredients of criminal breach of trust as per Section 406 of the Indian Penal Code are as follows:
- Entrustment: There must be an entrustment of property to the accused. It means that the owner of the property must have given the property to the accused with the intention of allowing him to hold it for some specific purpose.
- Criminal Misconduct: The accused must have misused the property that was entrusted to him or has dishonestly misappropriated it or converted it to his own use.
- Dishonest Intent: The accused must have had a dishonest intention to use the property for his own benefit or to cause harm to the owner of the property.
- Conversion: The accused must have converted the property to his own use, or disposed of it in a manner that is inconsistent with the terms of entrustment.
It is important to note that in order to establish criminal breach of trust, it is necessary to prove that the accused had the intention to cause harm to the owner of the property at the time of entrustment.
Background of IPC 406
IPC Section 406, also known as the punishment for criminal breach of trust, is a penal provision that deals with the punishment for committing criminal breach of trust in India. It is part of the Indian Penal Code (IPC), which is the main criminal code of India and was enacted in 1860. IPC Section 406 defines the offense of criminal breach of trust and outlines the punishment for the same. The section stipulates 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 both. This provision applies to all persons, including public servants, bankers, merchants, and individuals.
Interpretation of IPC Section 406
Criminal breach of trust under IPC Section 406 refers to the act of misappropriating or converting the property that has been entrusted to the accused. This could involve embezzlement of money, misappropriation of goods, or conversion of property for personal use. The essential elements of this offense include entrustment of property, dishonest misappropriation or conversion of that property, and the intent to cause wrongful loss to the person who entrusted the property.
Procedure of Trial for Section 406 of IPC
The trial procedure for the Section 406 of the Indian Penal Code (IPC) can be described as follows:
- Filing of the FIR: The First Information Report (FIR) for the offense under Section 406 of IPC is lodged with the police when a person comes to know about the commission of an offense of criminal breach of trust.
- Investigation: The police then investigates the matter and gather evidence against the accused. The police also take the statement of witnesses and prepare a report.
- Charge Sheet: Based on the investigation report, the police file a charge sheet in the court. The charge sheet contains the details of the offense, the evidence gathered against the accused, and the names of witnesses.
- Framing of Charges: The court then considers the charge sheet and if satisfied, frames charges against the accused. The accused is then called upon to face trial.
- Evidence: The prosecution then presents its evidence in the court and examines the witnesses. The defense counsel also cross-examines the prosecution witnesses and presents its own evidence, if any.
- Arguments: After the evidence is completed, the prosecution and defense counsel present their arguments in the court.
- Judgment: The court then considers the evidence and arguments presented by both parties and delivers its judgment. The court may acquit the accused if it finds the prosecution has not been able to prove the charge beyond reasonable doubt. If the accused is found guilty, the court pronounces the sentence.
It is important to note that Section 406 of IPC is a cognizable, non-bailable, and non-compoundable offense. This means that the police can make an arrest without a warrant, the accused cannot be released on bail easily, and the matter cannot be settled between the parties.
Comparison between Criminal breach of trust and Criminal misappropriation
Criminal breach of trust and criminal misappropriation are two distinct criminal offenses as per Indian Penal Code (IPC) that pertain to the mismanagement or misuse of someone else’s property or funds. However, there are some key differences between the two offenses:
- Definition: Criminal breach of trust (IPC Section 406) involves the violation of a position of trust, where a person entrusted with property, documents, or funds fails to return the same. Criminal misappropriation (IPC Section 403), on the other hand, involves the unauthorized use or conversion of someone else’s property to the misappropriator’s own use.
- Trust relationship: Criminal breach of trust requires the existence of a trust relationship, where one person has been entrusted with property, funds, or documents by another. In contrast, criminal misappropriation does not require a trust relationship.
- Intent: Criminal breach of trust requires the accused to have the intention of committing a breach of trust, while criminal misappropriation only requires the accused to have the intention of misappropriating someone else’s property.
- Punishment: The punishment for criminal breach of trust is more severe compared to the punishment for criminal misappropriation. Criminal breach of trust is punishable with imprisonment for a term that may extend to three years, or with fine, or with both, while criminal misappropriation is punishable with imprisonment for a term that may extend to three years, or with fine, or with both.
In conclusion, criminal breach of trust and criminal misappropriation are different offenses under IPC. While both relate to the mismanagement or misuse of someone else’s property or funds, the difference lies in the existence of a trust relationship, the intent of the accused, and the severity of punishment.
Penalties under IPC 406 for criminal breach of trust
Penalties for criminal breach of trust, as prescribed under Section 406 of the Indian Penal Code (IPC), are as follows:
- Imprisonment: The offender can be sentenced to imprisonment for a term that may extend to three years, or with fine, or with both.
- Enhanced Punishment: In cases where the breach of trust is committed in respect of property that has been entrusted to the accused by virtue of his office, the punishment can be extended to a term of seven years, or with fine, or with both.
It is to be noted that Section 406 of the IPC defines criminal breach of trust as an offense that is non-bailable and cognizable, which means that the police have the authority to arrest the accused without a warrant, and the accused cannot be released on bail without appearing before a Magistrate.
References and Further Readings
- “The Indian Penal Code (45 of 1860), S. 406 – Criminal breach of trust” by V.R. Manohar, published in the Journal of Indian Law Institute in 1961.
- “Criminal Breach of Trust: An Analysis” by S.R. Myneni, published in the Journal of the Indian Law Institute in 1998.
- “A Critical Study of Criminal Breach of Trust” by N.N. Mathur, published in the Journal of the Indian Law Institute in 2002.
- “IPC section 406 – Criminal breach of trust: An analytical study” by D.V.S.S. Murthy, published in the Journal of Indian Law and Society in 2012.
- “An Analysis of Criminal Breach of Trust Under Indian Penal Code” by K. Rajesh, published in the Journal of the Indian Academy of Law and Management in 2013.
Frequently Asked Questions on IPC 406
- What is IPC Section 406?
- IPC Section 406 defines the punishment for criminal breach of trust in India.
- What is considered as criminal breach of trust in India?
- Criminal breach of trust is when a person who is entrusted with property or authority over it, misappropriates or converts that property for their own use.
- Who can be held liable under IPC Section 406?
- Any person who has been entrusted with property or authority over it can be held liable under IPC Section 406.
- What is the punishment for criminal breach of trust in India?
- The punishment for criminal breach of trust in India is imprisonment for a term of up to three years, or with a fine, or with both.
- Is it a non-bailable offense under IPC Section 406?
- Yes, it is a non-bailable offense under IPC Section 406.
- Can a person be tried for both IPC Section 406 and 420?
- Yes, a person can be tried for both IPC Section 406 (criminal breach of trust) and IPC Section 420 (cheating).
- What is the statute of limitations for IPC Section 406?
- The statute of limitations for IPC Section 406 is three years from the date of the offense.
- Is there any minimum punishment prescribed under IPC Section 406?
- No, there is no minimum punishment prescribed under IPC Section 406. The punishment can range from imprisonment to fine or both.
- Can a compromise be reached in cases under IPC Section 406?
- No, compromise is not allowed in cases under IPC Section 406 as it is a criminal offense.
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