The Indian Penal Code, 1860’s Chapter 17, sections 378–462, addresses offenses against property. Criminal breach of trust is one such offense against property.
Let’s break the crime of criminal breach of trust down into three parts: criminal, breach, and trust.
Criminal: The word “criminal” designates anything having to do with wrongdoing, crime, or legal prohibitions.
Breach: A breach is when someone disobeys an agreement, abides by an unwritten norm, or violates another legislation.
Trust: To be truthful and sincere; to have a fiduciary relationship or to believe in something. The master-servant connection, the lawyer-client relationship, etc. are a few examples.
Criminal Breach of Trust: An Explanation of Section 405 IPC
The IPC’s Section 405 defines the crime of criminal breach of trust. According to this provision, if someone is entrusted—that is, when property is delivered out of trust—with another person’s property or has any sort of control or authority over another person’s property and then dishonestly misappropriates or converts that property for his own use, that person is considered to have committed a criminal breach of trust.
Put simply, a person commits the crime of criminal breach of trust if they dishonestly convert property that has been given to them under false pretenses for their own use.
Note: The type of property is not expressly mentioned under Section 405 of the IPC. Therefore, it is possible to charge a criminal breach of trust against any kind of property, whether it is mobile or immovable.
The Fundamentals of Criminal Trust Breach
A person needs to be given property or ought to have any kind of dominion (control or authority) over it.
(a)That the individual either had to have deceitfully taken or altered the property for their personal benefit, or
(b) should knowingly allow someone else to misappropriate the property, utilize it dishonestly, or dispose of it.
Any trust-related legislation or contracts must be broken in order for such an act to occur.
Penalties for Criminal Trust Breach
Section 406 of the Indian Penal Code lays down the penalties for the crime of criminal breach of trust. For this reason, anyone found guilty of the crime of criminal breach of trust faces a maximum sentence of three years in jail of any kind, a fine, or both.
Legal Cases Concerning Criminal Breach of Trust
The following are some rulings by judges concerning criminal deception:
The definition of “entrustment” of any property was established by the court in Ram Narain Popli v. Central Bureau of Investigation (2003). Entrustment refers to giving up ownership of a piece of property for a use that might not violate proprietary rights.
The case of Rashmi Kumar vs. Mahesh Kumar Bhada (1996) involved the Supreme Court’s ruling that, in situations where a wife entrusts her husband or another family member with her Streedhan property and grants them dominion (authority), that person is guilty of criminal breach of trust if they dishonestly misappropriate the property for their personal benefit. Whatever a woman acquires over her lifetime or property that is specifically hers is considered her “streedhan property.”
Delhi Administration v. R. K. Dalmia (1962): In this instance, the court decided that the “partners” would be guilty of criminal breach of trust under section 405 of the IPC if they were entrusted with property and took it for their personal benefit.
Carrier’s criminal breach of trust, etc.
A carrier, a wharfinger, or a warehouse keeper may be charged with criminal breach of trust under Section 407 of the IPC. In the event that an individual who is entrusted with property in their capacity as a carrier, wharfinger, or warehouse-keeper violates the criminal breach of trust law, they will face both a fine and up to seven years’ imprisonment of their choice.
A corporation that carries people or commodities is referred to here as a carrier. Wharfinger refers to the wharf’s (harbour’s) owner or caretaker.
Criminal Trust Breach by Servants or Clerks
In accordance with Section 408 of the Indian Penal Code, a clerk, servant, or person employed in such a capacity who commits a crime of criminal breach of trust faces up to seven years in prison of any kind in addition to significant fines.
Banker, merchant, agent, or public servant in criminal breach of trust
In accordance with Section 409 of the Indian Penal Code, an individual who commits a criminal breach of trust and is a banker, merchant, factor, broker, attorney, or agent faces life imprisonment or a term of imprisonment of up to ten years, in addition to a fine.