BNS Section 316 – Criminal breach of trust
—(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.
Explanation 1.—A person, being an employer of an establishment whether exempted under
section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) or
not who deducts the employee’s contribution from the wages payable to the employee for credit to a
Provident Fund or Family Pension Fund established by any law for the time being in force, shall be
deemed to have been entrusted with the amount of the contribution so deducted by him and if he makes
default in the payment of such contribution to the said Fund in violation of the said law, shall be deemed
to have dishonestly used the amount of the said contribution in violation of a direction of law as
aforesaid.
Explanation 2.—A person, being an employer, who deducts the employees’ contribution from the
wages payable to the employee for credit to the Employees’ State Insurance Fund held and administered
by the Employees’ State Insurance Corporation established under the Employees’ State Insurance
Act, 1948 (34 of 1948) shall be deemed to have been entrusted with the amount of the contribution so
deducted by him and if he makes default in the payment of such contribution to the said Fund in violation
of the said Act, shall be deemed to have dishonestly used the amount of the said contribution in violation
of a direction of law as aforesaid.
Illustrations.
(a) A, being executor to the will of a deceased person, dishonestly disobeys the law which directs
him to divide the effects according to the will, and appropriates them to his own use. A has committed
criminal breach of trust.
(b) A is a warehouse-keeper Z going on a journey, entrusts his furniture to A, under a contract that it
shall be returned on payment of a stipulated sum for warehouse room. A dishonestly sells the goods. A
has committed criminal breach of trust.
(c) A, residing in Kolkata, is agent for Z, residing at Delhi. There is an express or implied contract
between A and Z, that all sums remitted by Z to A shall be invested by A, according to Z’s direction. Z
remits one lakh of rupees to A, with directions to A to invest the same in Company’s paper. A dishonestly
disobeys the directions and employs the money in his own business. A has committed criminal breach of
trust.
(d) But if A, in illustration (c), not dishonestly but in good faith, believing that it will be more for Z’s
advantage to hold shares in the Bank of Bengal, disobeys Z’s directions, and buys shares in the Bank of
Bengal, for Z, instead of buying Company’s paper, here, though Z should suffer loss, and should be
entitled to bring a civil action against A, on account of that loss, yet A, not having acted dishonestly, has
not committed criminal breach of trust.
(e) A, a revenue-officer, is entrusted with public money and is either directed by law, or bound by a
contract, express or implied, with the Government, to pay into a certain treasury all the public money
which he holds. A dishonestly appropriates the money. A has committed criminal breach of trust.
(f) A, a carrier, is entrusted by Z with property to be carried by land or by water. A dishonestly
misappropriates the property. A has committed criminal breach of trust.
(2) Whoever commits criminal breach of trust shall be punished with imprisonment of either
description for a term which may extend to five years, or with fine, or with both.
(3) Whoever, being entrusted with property as a carrier, wharfinger or warehouse-keeper, commits
criminal breach of trust in respect of such 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.
(4) 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.
(5) Whoever, being in any manner entrusted with property, or with any dominion over property in his
capacity of a public servant or in the way of his business as a banker, merchant, factor, broker, attorney or
agent commits criminal breach of trust in respect of that property, shall be punished with imprisonment
for life, or with imprisonment of either description for a term which may extend to ten years, and shall
also be liable to fine.
Important Links
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