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IPC Section 405 defines the offence of criminal breach of trust. It says that whoever, being in any manner entrusted either with property or with any dominion over property, either dishonestly misappropriates or dishonestly converts to his own use that property, or either dishonestly uses or dishonestly disposes of that property in violation of any direction of law which has prescribed the mode in which such trust is to be discharged, or of any legal express or implied contract which he has made touching the discharge of such trust, or wilfully suffers any other person so to do, commits ‘criminal breach of trust.

The section requires that the offender must be entrusted with either property or dominion over property in any manner. He must then dishonestly misappropriate the same or dishonestly convert the same to his own use, or he must dishonestly use or dishonestly dispose of that property in violation of law which has prescribed the mode in which such trust is to be discharged, or any legal express or implied contract which he has made touching the discharge of such trust, or he wilfully suffers any other person so to do. This offence is also known by the name ‘embezzlement’ even though that word has not been used in the Indian Penal Code.
There must always be entrustment in criminal breach of trust. The entrustment could be either of property or of dominion over property. Thus, there must necessarily be at least two parties, one who entrusts and the other to whom the property or the dominion over property is entrusted.

The use of the words ‘in any manner’ shows that there is no fixed mode of entrustment. It may be a trust as provided under the Indian Trusts Act, 1882 or it may be any other kind of entrustment. Since the word ‘property’ and not ‘movable property’ has been used in section 405, it is quite clear that the offence of criminal breach of trust is not restricted to movable property only and this offence can be committed in respect of immovable property as well.
The offence is also committed where the offender dishonestly uses or disposes of that property by violating either any law which gives any direction prescribing the mode in which such trust is to be discharged, or any legal express or implied contract which he has made touching the discharge of such trust. The contract has to be legal, whether express or implied. It cannot be for a criminal purpose like, for instance, purchase of stolen property.

The accused is guilty of this offence also when he wilfully suffers any other person so to do. In other words, if an accused entrusted with property or dominion over property wilfully suffers any other person to use or dispose of the trust property in violation of law as stated above, the accused is guilty of committing this offence.
It needs to be noted that the section nowhere says that the property in respect of which this offence is committed must belong to the complainant. All that is necessary is that the property or dominion over property must be entrusted by one to another, and it is immaterial as to whether the complainant is its owner or not. Collecting bus fares from passengers but failing to deposit the same is not criminal breach of trust because being entrusted with doing a job and being entrusted with money are distinct and separate matters.

In the offence of criminal misappropriation the offender is already in possession of the property in an innocent manner before he dishonestly misappropriates or converts the same to his own use. whereas in criminal breach of trust he is entrusted with property or dominion over property in any manner before the dishonest misappropriation or conversion of the property or before he dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, or wilfully suffers any other person so to do. The offence of criminal misappropriation of property can be committed only with respect to movable property, while criminal breach of trust can be committed with respect to both movable and immovable property.

Advocate Jaspreet Singh Rai can be consulted for further information at [ Ссылка ] or by calling at +91-9599000555

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