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.
RightToLaw Team
RightToLaw Legal Research Team is a dedicated group of legal researchers, advocates, and content specialists committed to making Indian law accessible and easy to understand. With extensive experience in legal research and statutory interpretation, the team creates accurate, well-researched, and…
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