Criminal Breach of Trust Section 405:
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“Whoever, being in any manner entrusted تفویض کیا گیا 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’.”
Case Law (SCMR 1980 402)
To establish the charge of criminal breach of trust the prosecution must prove not only entrustment but also that the accuse dishonestly misappropriated the property.
Key Element of Criminal Breach of Trust:
Here are the key elements and characteristics of criminal breach of trust under Section 405:
Entrustment تفویض کردہ:
The offender must be entrusted with property or have dominion over property. This means they are given custody, control, or responsibility for the property by the owner or by law.
Dishonest Misappropriation or Conversion:
The offender dishonestly misappropriates or converts the property for their own use without the consent of the owner. This involves wrongful appropriation or conversion of the property to the offender’s benefit.
Violation of Direction of Law or Legal Contract:
The misappropriation, conversion, use, or disposal of the property is done in violation of any direction of law or legal contract. It includes the breach of a legal duty or obligation related to the handling or use of the entrusted property.
Wilful Suffering of Another Person:
The offender, if they do not commit the breach of trust themselves, wilfully allows or permits another person to dishonestly misappropriate, convert, use, or dispose of the entrusted property.
Examples of Breach of Trust:
Here are some instances of criminal breach of trust as mentioned in the PPC:
- Assume “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 breach of trust.
- A public servant entrusted with public funds, such as a government official, embezzles or misappropriates those funds for personal gain or uses them in violation of the prescribed rules and regulations.
- A banker or merchant, acting as a custodian of customer funds, dishonestly misappropriates or converts those funds to their own use without the customer’s consent or in violation of the terms of the banking or business relationship.
- An agent or attorney, acting on behalf of a client, dishonestly misappropriates or converts the client’s property or assets to their own use without the client’s authorization or in violation of the terms of the agency or attorney-client relationship.
- A trustee entrusted with managing or overseeing trust property, such as assets or funds, breaches their fiduciary duty by dishonestly misappropriating or converting the trust property for personal gain or using it in violation of the terms of the trust agreement.
- A factor or broker entrusted with goods, merchandise, or funds for the purpose of sale, delivery, or disposal dishonestly misappropriates or converts those goods or funds for personal benefit, without authorization, or contrary to the terms of the agreement.
Punishment For Criminal Breach of Trust U/S 406:
Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to seven years or with fine or with both.
DIFFERENCE BETWEEN THEFT AND CRIMINAL BREACH OF TRUST
Theft and criminal breach of trust are distinct offenses under the Pakistan Penal Code (PPC) and involve different elements and circumstances. Here are the key differences between theft and criminal breach of trust:
|Nature of Difference||Theft||Criminal Breach of Trust|
|Nature of the Offense||Theft involves the act of unlawfully taking someone else’s property without their consent and with the intention to permanently deprive محرومی them of it. The focus is on the act of taking and depriving the owner of their property.||Criminal breach of trust occurs when a person, who is entrusted with property or has dominion over property, dishonestly misappropriates or converts it to their own use or violates any direction of law or legal contract related to the entrusted property. The emphasis is on the breach of trust and the violation of the fiduciary duty owed to the owner of the property.|
|Consent and Entrustment||In theft, the property is taken without the owner’s consent. The thief does not have lawful possession or authorization to take the property.||In case of breach of trust, the property is taken with the owner’s consent. The Possession is lawful and with the consent of owner but its use is illegal manner.|
|Intent and Misappropriation||The intention of the thief in a theft case is to permanently deprive the owner of their property. The thief intends to take the property for their own benefit, without the owner’s consent.||In criminal breach of trust, the accused misappropriates or converts the entrusted property for their own use or in violation of the direction of law or legal contract. The focus is on the misuse or unauthorized use of the entrusted property.|
|Relationship Between the Parties||Theft can occur between any individuals, regardless of their relationship. It does not necessarily require a fiduciary relationship or a position of trust between the parties involved.||Criminal breach of trust typically involves a relationship of trust and confidence between the accused and the owner of the property. The accused is entrusted with the property by virtue of their position, such as being a public servant, banker, agent, or attorney.|
|Punishment||The punishment for theft under the PPC varies depending on the value of the stolen property and ranges from imprisonment to fines, depending on the specific circumstances and provisions. Imprisonment can be up to 3 years.||The punishment for criminal breach of trust under the PPC is based on the value of the property involved and ranges from imprisonment to fines, depending on the specific circumstances and provisions. Imprisonment can be up to 7 years.|