Under Section 405 IPC, 'criminal breach of trust' is committed when a person, entrusted with property:
Adishonestly misappropriates or converts to his own use that property, or disposes of it in violation of law or contract
Bdeceives another, inducing delivery of property and thereby causing wrongful loss (cf. IPC, Section 405)
Ctakes the property dishonestly out of the possession of another, without consent (cf. IPC, Section 405)
Dvoluntarily puts the owner in fear of injury and obtains the property from him by such fear (cf. IPC, Section 405)
Answer & Solution
Correct answer: A. dishonestly misappropriates or converts to his own use that property, or disposes of it in violation of law or contract
1. Section 405 IPC: '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.'
2. Essential ingredients: (i) entrustment of property; (ii) dishonest misappropriation or conversion or disposal in violation of legal/contractual obligation.
3. Distinction from theft: in CBT, the property is FIRST lawfully entrusted; in theft, property is taken without consent.
4. Punishment under Section 406: up to 3 years; Section 409 (CBT by public servant/banker): up to life imprisonment.
5. Hence option C is correct.
_Source: Indian Penal Code 1860 / Code of Criminal Procedure 1973 / Indian Evidence Act 1872 (Bare Acts, indiacode.nic.in) — IPC, Section 405_
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