Criminal breach of trust

What this section does

This section defines criminal breach of trust and prescribes graduated punishments depending on the capacity in which the offender was entrusted with property. The offence involves dishonest misappropriation, conversion, or disposal of entrusted property in violation of law or contract. Punishments escalate from 5 years for the basic offence up to life imprisonment for public servants, bankers, merchants, and similar fiduciaries.

AI-generated plain-language summary. For the binding statutory text, see India Code (official).

Quick reference

Punishment

Basic offence (sub-section 2): imprisonment of either description up to 5 years, or fine, or both. Carrier/wharfinger/warehouse-keeper (sub-section 3): up to 7 years and fine. Clerk or servant (sub-section 4): up to 7 years and fine. Public servant, banker, merchant, factor, broker, attorney or agent (sub-section 5): imprisonment for life, or imprisonment of either description up to 10 years, and fine.

Triable by

Sessions Court

Cognizable

Yes

Bailable

Depends

Compoundable

Depends

Ingredients (what prosecution must prove)

1. The accused was entrusted with property or had dominion over property
2. The accused dishonestly misappropriated or converted that property to their own use, OR dishonestly used or disposed of it in violation of a direction of law or a legal contract governing the trust, OR wilfully allowed another person to do so
3. The act was done dishonestly (not merely in good faith)

• IPC Section 405 — Criminal breach of trust
• IPC Section 406 — Punishment for criminal breach of trust
• IPC Section 415 — Cheating (definition)