What is difference between criminal breach of trust and misappropriation of property as per indian penal code and BNS ?

Difference Between Criminal Breach of Trust and Misappropriation of Property under BNS

1. Criminal Breach of Trust (Section 316, BNS,S 405 of IPC)

Definition:

Criminal breach of trust occurs when a person who has been entrusted with property, or has dominion over it, dishonestly misappropriates or converts it to their own use, or uses/disposes of it in violation of any law or contract governing the trust.

Key Elements:

• Entrustment: Property must be entrusted to the accused, creating a fiduciary relationship.

• Dishonest Misuse: The accused dishonestly misuses, converts, or disposes of the property against the terms of the trust or contract.

• Violation of Trust: The act must be contrary to the purpose for which the property was entrusted.

Examples:

• An employee entrusted with company funds uses them for personal expenses.

• A banker entrusted with a client’s money uses it for personal gain.

2. Misappropriation of Property (Section 314, BNS,S 403 of IPC)

Definition:

Dishonest misappropriation of property occurs when a person dishonestly takes or converts movable property for their own use, without the owner’s consent, even if the property came into their possession lawfully or by accident.

Key Elements:

• No Entrustment Required: The property need not be entrusted; it may come into possession by chance, accident, or other means.

• Movable Property Only: Applies only to movable property.

• Dishonest Conversion: The person converts the property for personal use, knowing it belongs to someone else.

Examples:

• Finding a lost wallet and keeping it instead of returning it.

• Using someone else’s property that came into your possession by mistake.

3. Key Differences

Aspect	Criminal Breach of Trust (Sec 316 BNS)	Misappropriation of Property (Sec 314 BNS)
Entrustment	Essential; property must be entrusted	Not required; property may come by chance
Type of Property	Movable or immovable	Movable only
Nature of Offence	Breach of trust relationship	No trust relationship; mere dishonest taking
Example	Employee misusing company funds	Keeping a found wallet
Legal Relationship	Fiduciary/contractual	No fiduciary/contractual relationship

4. Summary Table

Criteria	Criminal Breach of Trust	Misappropriation of Property
Entrustment	Required	Not required
Property Type	Movable & immovable	Movable only
Relationship	Fiduciary/trust	None
Example	Misuse of entrusted funds	Keeping found property
Section (BNS)	316	314
Conclusion

• Entrustment is the core difference: breach of trust requires it, misappropriation does not.

• Both require dishonest intent, but breach of trust involves a violation of a specific trust or contract, while misappropriation is a general dishonest conversion of property.

Practical Example

The difference can be illustrated through a simple example: If person A finds a wallet on the street containing money and owner's identification, but instead of returning it, uses the money for personal benefit, this constitutes criminal misappropriation. However, if person A is given jewelry by person B to keep safe during a wedding ceremony and then refuses to return it afterwards, this constitutes criminal breach of trust because the property was specifically entrusted to A.

The fundamental distinction lies in the element of trust - criminal breach of trust requires a pre-existing relationship of trust and entrustment, while criminal misappropriation can occur even when property comes into possession accidentally or through other means.

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