Section 403-409 I.P.C.

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Section 403

Criminal Misappropriation of Property

According to section 403 I.P.C. a person commits, “criminal misappropriation” if he –

(i)                 Dishonestly misappropriates or coverts to his own use,

(ii)               Any movable property. For example –

(a)        A takes property belonging to Z out of Z’s possession in good faith believing, at the time when he takes it, that the property belongs to himself. A is not guilty of theft, but if A after discovering his mistake dishonestly misappropriates the property to his own use, he is guilty of an offence under this section

(b)   A, being on friendly terms with Z, goes into Z’s library in Z’s absence and takes away a book without Z’s express consent. Here, if A was under the impression that he had Z’s implied consent to take book for the purpose of reading it, A has not committed theft. But A afterwards sells the book for his own benefit, he is guilty of an offence under the section.

(c)    A and B being joint-owners of a horse, A takes the horse out of B’s possession intending to use it. Here, as A has a right to use the horse, he does not dishonestly misappropriate it. But if A sells the horse and appropriates the whole proceeds to his own use, he is guilty of an offence under this section.

Thus, it is clear from the examples (a), (b) and (c), that the original innocent taking amounts to criminal misappropriation.

Explanations – Section 403 provides two explanations:

Explanation 1 – A dishonest misappropriation for a time only is “misappropriation” within the meaning of Section 403.

Explanation 2 – A person who finds property not in the possession of any other person, and takes such property for the purpose of protecting it for, or of restoring to the owner does not take or misappropriate it “dishonestly”, is not guilty of the offence; but he is guilty of the offence , if he appropriates it to his own use, when he knows the means of discovering the owner, or before he has used reasonable means to discover and give notice to the owner  and has kept the property for a ‘reasonable means’ or what is a ‘reasonable time’ in each case, is a question of fact.

Hence essentials of Criminal Misappropriation of Property – According to Section 403, there are two essentials of criminal misappropriation of property –

1.      Dishonest misappropriation or conversion of property for a person’s own use; and

2.      Such property must be movable.

Case Laws –

1.      Emp. Vs. Raza Hussein – A and B were about to travel by the same train from Benares City. A has a ticket for Ajudhia. B had two tickets for Benares Cantonment. A voluntarily handed over her ticket to B in order that he might tell her if it was right. B, under the pretence of returning A’s ticket, substituted therefore one of his own, and kept A’s ticket. It was held that B was guilty of criminal misappropriation rather than cheating.

2.      A, a servant in the Postal Department, while assisting in the sorting of letters, secreted two letters with the intention of handing them over to the delivery peon and sharing with him certain money payable upon them. Under section 408 of the Indian Postal Offices Act, it is an offence to secret a postal article. A’s intention is to share the money payable upon the letters. He is, therefore, guilty of theft as a servant and of attempt to commit misappropriation of property.

Section 405

Criminal Breach of Trust

Whoever being in any manner entrusted with

(a)    Property or

(b)   Dominion over property – dishonestly

(1)   Misappropriates, or

(2)   Converts to his own use, or

(3)   Uses or disposes of that property in violation of any –

(a)    Direction of law prescribing the mode in which such trust is to be discharged; or

(b)   Legal contract (express or implied), which he has made touching the discharge of such trust – or willfully suffers any other person so to do, commits “criminal breach of trust”

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 of warehouse room. A dishonestly sells the goods. A has committed criminal breach of trust.

Essential of Criminal Breach of Trust

1.      The accused was entrusted with property or with dominion over it;

2.      That he dishonestly

(i)                 Misappropriated it, or

(ii)               Converted it to his own use, or

(iii)             Used it, or

(iv)             Disposed it of;

3.      That s/he or some other person at his instance did so in violation of Any direction of law prescribing the mode in which trust is to be  discharged, or any legal contract (express or implied) which he had made touching the discharge of such trust.

Note: To constitute an offence of criminal breach of trust, there must be dishonest misappropriation by a person, in whom confidence is placed.

Section 406

Punishment for Criminal Breach of Trust

Imprisonment of either description for a term which may extend to three years or with fine or with both

Section 407

Criminal Breach of Trust by Carrier etc

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 which may extend to seven years and shall also be liable to fine.

Section 408

Criminal Breach of Trust by Clerk or Servant

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 which may extend to seven years and shall also be liable to fine.

Section 409

Criminal Breach of Trust by Public Servant

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 which may extend to ten years and fine.

 

 

 

Section 415

Cheating

Whoever by deceiving any person, -

(a)    Fraudulently or dishonestly induces the person so deceived

(i)                 To deliver any property to any person; or

(ii)               To consent that any person shall retain any property, or

(b)   Intentionally induces the person so deceived to do or omit to do anything which he would not to do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to “cheat”.

Hence, cheating can be done in two ways, but the “deception” element is the essential in both the ways.

Illustrations:

(1)   A, by falsely pretending to be in the Civil Service, intentionally deceives Z and thus dishonestly induces Z to let him have on credit goods for which he does not mean to pay. A cheats.

(2)   A, by putting a counterfeit mark on article, intentionally deceives Z into a belief that this article was made by a certain celebrated manufacture, and thus dishonestly induces Z to buy and pay for article. A cheats.

(3)   A by exhibiting to Z a false sample of an article, intentionally deceives Z into believing that the article corresponds with the sample, and thereby dishonestly induces Z to buy and pay for the article, intending not to pay for it, A cheats.

(4)   A by pledging as diamonds articles which he knows are not diamonds, intentionally deceives Z, and thereby dishonestly induces Z to lend money, A cheats.

(5)   A intentionally deceives Z into a belief that A means to repay any money that Z may lend to him and thereby dishonestly induces Z to lend him money, A not intending to repay it. A cheats.

Thus, it is clear that cheating is not necessary intended to deceive any particular individual rather it can be intended to any one in particular as mentioned in illustrations (3) and (4) and a promise as to future conduct not intended to be kept is also cheating as in illustration (5).

Case Laws:

1.      Dwarkanath Ghos, 20 W.R. Cr. L.J. 49 – The accused obtained a genuine signature upon a false document by inserting the document in a heap of paper placed for signature before the person signing it. The accused was charged with forgery. The court held that the accused was guilty of cheating, and not of forgery.

2.      Sukhdeo Pathak, 19 Cr. L.J. 209 – A goes to a Railway Station and obtains admission to the platform pretending that he is a C.I.D. officer, without purchasing a platform ticket. A would be guilty of cheating.

Section 416

Cheating by Personation

Whoever, cheats by;

(1)   Pretending to be some other person, or

(2)   By knowing substituting one person for another, or

(3)   Representing that he or any other person is a person other than he or such other person really

is referred as “Cheating by Personation.”

Examples;

1.      A cheats by pretending to be a certain rich banker of the same name. A cheats by personation.

2.      A cheats by pretending to B, a person who is deceased. A cheats by personation.

Section 417

Punishment for Cheating

Imprisonment for either description which may extend to one year or with fine or with both

Section 418

Cheating with Knowledge that wrongful loss may ensue to person whose interest offender is bound to protect

Whoever, cheats with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect either by law or by legal contract, shall be punished with imprisonment of either description which may extend to three years or with fine or with both.

Section 419

Punishment for Cheating by Personation

Imprisonment of either description which may extend to three years or with fine or with both

Section 420

Cheating and dishonestly inducing delivery of property

Cheating and dishonesty inducing delivery of property or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description which may extend to seven years and with fine.

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