Section 406 IPC: Punishment for Criminal Breach of Trust
Section 406 of the Indian Penal Code, 1860 (IPC) prescribed punishment for criminal breach of trust. For offences governed by the Bharatiya Nyaya Sanhita, 2023 (BNS), the corresponding general punishment is provided in Section 316(2) BNS. The underlying offence requires dishonest dealing with property that was entrusted to the accused or placed under the accused's dominion.
Section 406 IPC: Text and punishment
Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
Section 406 is the punishment provision. The definition of the offence appears in Section 405 IPC.
Section 316 BNS: Current corresponding provision
Section 316(1) BNS defines criminal breach of trust. Under Section 316(2) BNS, a person committing criminal breach of trust is punishable with imprisonment of either description for a term which may extend to five years, or with fine, or with both. Section 316 also provides specific, more serious punishment provisions for certain categories of entrusted persons and situations.
| Point | IPC | BNS |
|---|---|---|
| Definition | Section 405 | Section 316(1) |
| General punishment | Section 406 | Section 316(2) |
| Maximum imprisonment | 3 years | 5 years |
| Other penalty | Fine, or both | Fine, or both |
Essential ingredients of criminal breach of trust
- Entrustment or dominion: The accused was entrusted with property or had dominion over it.
- Dishonest conduct: The accused dishonestly misappropriated, converted, used or disposed of the property, or wilfully permitted another to do so.
- Breach of duty: The conduct violated a legal direction or an express or implied legal contract governing the trust, where relevant.
- Dishonest intention: The prosecution must establish the required dishonest mental element; a mere contractual dispute or failure to repay does not automatically establish the offence.
Practical examples
A warehouse keeper who sells goods entrusted for storage without authority may commit criminal breach of trust. An agent who dishonestly diverts a client's earmarked funds to personal use may also attract the provision. Conversely, a genuine accounting dispute or good-faith contractual disagreement is not by itself proof of criminal breach of trust.
Special categories and related provisions
More serious forms of criminal breach of trust may arise where property is entrusted to a carrier, warehouse keeper, clerk, servant, public servant, banker, merchant or agent. Under the former IPC, relevant provisions included Section 407, Section 408 and Section 409. Under the BNS, consult Section 316(3) to (5) for the relevant special categories and penalties.
Case-law citations retained from the original page
The original page listed the following historical references. Their facts, holdings, relevance and citation accuracy should be checked against the reported judgments before reliance in litigation:
- Surendra Nath Basu, (1938) 2 Cal. 257.
- Beacall, (1824) 1 C & P 454.
- Keshavrao, (1934) 36 Bom. L.R. 1120.
Frequently asked questions
What is the punishment under Section 406 IPC?
Imprisonment of either description for up to three years, or fine, or both.
What is the corresponding provision under BNS?
Section 316(2) BNS provides the general punishment for criminal breach of trust, with imprisonment of either description for up to five years, or fine, or both.
Does every failure to return money amount to criminal breach of trust?
No. Entrustment and dishonest misappropriation or misuse must be established on the facts. Civil liability alone does not automatically prove a criminal offence.
Official legal sources
Read the enacted legislation and amendments through the India Code official legislation portal and the Ministry of Home Affairs. Search for the Indian Penal Code, 1860 and Bharatiya Nyaya Sanhita, 2023, and verify the provisions and commencement notifications applicable to the case.
This article is general legal information, not case-specific legal advice. Updated: 30 October 2026.