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.
In simple terms: Section 406 of the Indian Penal Code (IPC) talks about the punishment for the offence of criminal breach of trust. That is when a person is entrusted with property or with control over it and instead of carrying out that trust honestly, uses it in their self-interest or dishonestly against the terms of that trust.
Essential Ingredients
To prove a case under Section 406, the prosecution must establish:
- Entrustment of Property: The accused must have been entrusted with property, or with control over property.
- Dishonest Misappropriation or Use: The accused must have, dishonestly, taken, used or converted that property for the purposes of his own benefit.
- Violation of Trust or Legal Contract: The use must not be according to the terms the property was entrusted.
Punishment under Section 406 IPC:
If found guilty, the person may be punished with:
- Imprisonment (either rigorous or simple) for 3 years, or
- Fine, or
- Both imprisonment and fine.
Example
Let’s say A gives B ₹50,000 to purchase machinery for A’s shop. B instead uses the money for his own vacation which A never consented to. Here:
- B was entrusted with the money.
- B then dishonestly used it for himself.
- This is a violation of the trust and object of the agreement.
Therefore, B is guilty of criminal breach of trust and can be punished under Section 406 IPC.