Delhi HCSupreme CourtNCLTNCLATCCIDRTRERADPDP 2023
BNS 2023Chapter XVIIIPC: IPC Section 405

Section 316

Criminal Breach of Trust

Offences Against Property

Plain English Explanation

Criminal breach of trust (CBT) occurs when a person entrusted with property dishonestly misappropriates or converts it for their own use. CBT requires: (1) Entrustment of property, (2) Dishonest misappropriation, (3) Violation of trust/legal direction. Common examples: company directors misusing company funds, employees stealing from employers, trustees misusing trust property, advocates misusing client money.

Legal Text

Bharatiya Nyaya Sanhita, 2023 · Section 316

(1) 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 wilfully suffers any other person so to do, commits "criminal breach of trust".

Keywords

criminal breach of trustCBTmisappropriationembezzlementtrusteeentrustment

Related Sections

Punishment

Up to 3 years or fine or both. By public servant/banker/merchant: up to 7 years + fine.

IPC Equivalent

IPC Section 405

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