The Supreme Court held that the expression ‘entrustment’ carries with it the implication that the person handing over any property or on whose behalf that property is handed over to another, continues to be its owner. The accused was sought to be prosecuted for criminal breach of trust. However, a portion of the cement purchased was diverted to a godown.

JaswantlalNathalal, the government sold cement to the accused only on the condition that it will be used for construction work. The term “entrusted” in Section 405governs not only the words “with the property” immediately following it but also the words “or with any dominion over the property.” The words used are ‘in any manner entrusted with the property.’ So, it extends to entrustments of all kinds whether to clerks, servants, business partners or other persons, provided they are holding a position of trust. The language of the Section is very wide. Entrustment, as the title to the offence itself suggests, entrustment of property is an essential requirement before any offence under this Section takes place. The only difference between the two is that in respect of criminal breach of trust, the accused is entrusted with the property or with dominion or control over the property.

A reading of the Section suggests that the gist of the offence of criminal breach of trust is ‘dishonest misappropriation’ or ‘conversion to own use’ another’s property, which is nothing but the offence of criminal misappropriation under Section 403. The offence of criminal breach of trust as defined under this Section is similar to the offence of embezzlement under the English law. The concept of criminal breach of trust can be divided broadly under 4 categories: Criminal Breach of trust as defined under Section 405 of The Indian Penal Code, 1860 states that whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or 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 willfully suffers any other person so to do, commits criminal breach of trust.

Criminal breach of trust