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IPC Study Notes :Criminal Breach of Trust


Dear Readers,

Here we are providing you updated and most relevant Study notes on IPC of Criminal Breach of Trust for Law Entrance Exam. These study notes are highly recommendable for all those who aspire to crack CLAT, DULLB, AILET and other Law Entrance Exam.

Criminal breach of trust whoever, being in any manner entrusted-
1. With Property.
2. With any dominion over property.

Dishonestly misappropriates or converts it to his use that property.
Dishonestly uses or disposes of that property in violation of any direction of Law prescribing
the mode in which such trust is to be discharge.

If any contract expressed or employed, which he has made touching the discharge of such
trusts or willfully suffers any other person to do so, commits criminal breach of trust.

Illustration: A being executer of the Will of a deceased person dishonestly disobeys the Law which directs him to divide the property according to the will and appropriates it to his own use. A has committed criminal breach of trust.

SECTION 405 (Criminal Breach of Trust):

(a) A, being executor to the will of a deceased person, dishon-estly disobeys the law which
directs him to divide the effects according to the will, and appropriate them to his own use.
A has committed criminal breach of trust.
(b) A is a warehouse-keeper. Z going on a journey, entrusts his furniture to A, under a contract that it shall be returned on payment of a stipulated sum for warehouse room. A dishonestly sells the goods. A has committed criminal breach of trust.
(c) A, residing in Calcutta, is agent for Z, residing at Delhi. There is an express or implied
contract between A and Z, that all sums remitted by Z to A shall be invested by A, according
to Z’s direction. Z remits a lakh of rupees to A, with directions to A to invest the same in
Company’s paper. A dishonestly disobeys the direction and employs the money in his own
business. A has com-mitted criminal breach of trust.
(d) But if A, in the last illustration, not dishonestly but in good faith, believing that it will be
more for Z’s advantage to hold shares in the Bank of Bengal, disobeys Z’s directions, and
buys shares in the Bank of Bengal, for Z, instead of buying Company’s paper, here, though
Z should suffer loss, and should be entitled to bring a civil action against A, on account of
that loss, yet A, not having acted dishonestly, has not committed criminal breach of trust.
(e) A, a revenue-officer, is entrusted with public money and is either directed by law, or bound by a contract, express or im-plied, with the Government, to pay into a certain treasury all the public money which he holds. A dishonestly appropriates the money. A has committed criminal breach of trust.
(f) A, a carrier, is entrusted by Z with property to be carried by land or by water. A dishonestly misappropriates the property. A has committed criminal breach of trust.

Essential Ingredients are:-
(1) Entrusting any person with property or with dominion over property.
(2) The person entrusted with such property dishonestly.
(a) Misappropriates it.
(b) Converts it to his own use or
(c) Used it or
(d) Disposed it off.
(3) The person must have violated:
(a) any direction of law prescribing the mode in which the trust is to be discharge or
(b) Any legal contract (express or implied) which he had made touching the discharge of
such trust.

DOMINION MUST BE THE RESULT OF ENTRUSTMENT

-That the property has been entrusted to him.
-Mere existence of dominion over property is not enough
-It is essential show that the dominion is the result of entrustment.
(Entrustment implies that the person handing over the property or on whose behalf property
is being handed over continues to be the owner.)

Example:
(a) A is a ware house keeper B going on a journey, entrusts his furniture to A under a
contract that is shall be returned on payment of a stipulated some for ware house room.
A dishonestly sells the goods/furniture. A has committed criminal breach of trust.
(b) A is an agent of B. Agent A is given directions by his principal to invest a particulars sum
in a particular manner. “A” disobeys its direction and makes personal use of money
entrusted to him by B ie. Principal .A has committed criminal breach of trust.
(c) “A” is a public servant. He holds position of a Revenue Officer. He must deposit the
money in her treasury but instead of depositing it in treasury he made personal use of
money (public money) entrusted to him. He committed criminal breach of trust

Punishment of Criminal Breach of Trust-

Whoever commits criminal breach of trust shall be punished with imprisonment of either
description of terms which may extend to 3 years or with fine or both.

SECTION 425 (Mischief):

Whoever with intent to cause, or knowing that he is likely to cause, wrongful loss or damage
to the public or to any person, causes the destruction of any property, or any such change
in any property or in the situation thereof as destroys or diminishes its value or utility, or
affects it injuriously, commits “mischief”.

Explanation 1- It is not essential to the offence of mischief that the offender should intend
to cause loss or damage to the owner of the property injured or destroyed. It is sufficient if
he intends to cause, or knows that he is likely to cause, wrongful loss or damage to any
person by injuring any property, whether it belongs to that person or not.

Explanation 2- Mischief may be committed by an act affecting property belonging to the
person who commits the act, or to that person and others jointly.

SECTION 441 (Criminal Tress Pass):

Whoever enters into or upon property in the possession of another with intent to commit an
offence or to intimidate, insult or annoy any person in possession of such property,
or having lawfully entered into or upon such property, unlawfully remains there with intent
thereby to intimidate, insult or annoy any such person, or with intent to commit an offence,
is said to commit “criminal trespass”.

PRACTICE EXERCISE:

1. Consider the following:

1. Entrustment.
2: Misappropriation or conversion to one’s own use.
3. Misappropriation, conversion or disposal with dishonest intention.
In which one of the following offences are the above essential ingredients?
(A) Cheating (B) Criminal breach of trust
(C) Criminal misappropriation (D) Extortion
Ans.B

2. Taking property dishonestly from the dead body
(A) does not amount to any offence under IPC.
(B) amounts to the offence of theft.
(C) amounts to the offence of criminal misappropriation.
(D) amounts to the offence of criminal breach of trust.
Ans.C

3. A is an agent of B. Agent A is given directions by his principal to invest a particulars sum in a particular manner. “A” disobeys its direction and makes personal use of money entrusted to him by B, the principal. Is A liable for criminal breach of trust?
A. Yes B. No
Ans.A

4. “A” is a public servant. He holds position of a Revenue Officer. He must deposit the money in her treasury but instead of depositing it in treasury he made personal use of money (public money) entrusted to him. Will he be held liable for criminal breach of trust?
A. Yes B. No
Ans.A

5. The accused is a warehouse-keeper. The complainant, going on a journey, entrusts his
furniture to the accused under a contract that the furniture would be returned on payment
of stipulated sum of money. The accused sells the furniture. The accused is guilty of which
one of the following?
(a) Criminal misappropriation (b) Theft
(c) Robbery (d) Criminal breach of trust
Ans.D


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