Criminal breach of trust under Section 408 of IPC

Under Section 408 of the Indian Penal Code (IPC), the offense of “Criminal Breach of Trust by Clerk or Servant” is described. This offense specifically applies to individuals who are employed as clerks or servants and are entrusted with property or given dominion over property in their capacity as employees. In simpler terms, this section applies to individuals who are employed as clerks or servants and are entrusted with property or given control over property. If such individuals dishonestly misappropriate or convert that property for their own use or for the use of others, without following the instructions or legal obligations related to the property, they can be charged with criminal breach of trust under Section 408. The section reads as under:

“Whoever, being a clerk or servant or employed as a clerk or servant, and being in any manner entrusted in such capacity with property, or with any dominion over property, commits criminal breach of trust in respect of that property, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.”

 The essential elements of the offense under Section 408:

• The accused person must be a clerk or servant, or employed as a clerk or servant.
• The accused person must have been entrusted in some capacity with property or given dominion over property due to their employment.
• The accused person commits a criminal breach of trust in respect of that property.
• The breach of trust involves dishonest misappropriation or conversion of the property for their own use or the use of any other person.
• The breach of trust is in violation of any direction given for the purpose of trust or any legal obligation.

All the above elements must be proved for establishing guilt under section 408 of the Indian Penal Code.

Punishment for offence under Section 408 of the Indian Penal Code:

Under Section 408 of the Indian Penal Code (IPC), the punishment for the offense of “Criminal Breach of Trust by Clerk or Servant” is imprisonment for a term which may extend up to seven years, along with the possibility of a fine. The court has the discretion to determine the precise duration of imprisonment within the maximum limit of seven years, based on the facts and circumstances of the case. The fine amount, if imposed, is decided by the court and can vary depending on the specifics of the case.

Complaint and Investigation:

A complaint regarding the offense under Section 408 can be filed with the police or brought to the attention of the concerned authorities. Upon receiving the complaint, an investigation will be conducted, and if there is sufficient evidence, charges can be framed and the case can proceed to trial.

Landmark cases on section 408 IPC

1. State of Kerala v. M.K. Mohan: In this case, the Supreme Court of India clarified that to establish an offense under Section 408, it is not necessary to prove that the accused had misappropriated or converted the property for their own use. It is sufficient to establish that the accused acted dishonestly and breached the trust reposed in them.
2. V. Prakash Babu v. State of Karnataka: In this case, the Karnataka High Court held that the offense under Section 408 is a specific provision dealing with criminal breach of trust by a clerk or servant. It clarified that to prove the offense, it is essential to establish the existence of an employment relationship and the entrustment of property due to that relationship.
3. State of Rajasthan v. Vinod Kumar Jain: In this case, the Rajasthan High Court emphasized that the offense under Section 408 requires a conscious act of dishonest misappropriation or conversion of property entrusted to the accused. The court held that mere negligence or breach of contract would not be sufficient to establish the offense.