Answer
Criminal Misappropriation:
A person commits criminal misappropriation if he dishonestly misappropriates or converts to his own use any movable property (S. 403) [2 years, or fine, or both].
The offence is committed though the misappropriation be only temporary. The finder of property is not guilty if he takes it to protect I to find the Owner, but he is guilty, if he appropriates it knowing owner or having the means of discovering him, or before using reasonable means to discover him, or not believing it to be his own property, or not believing in good faith that the owner cannot be found.
This offence takes place when the possession has been innocently come by, but where, by a subsequent change of intention, or from the knowledge of some new fact with which the party was not previously acquainted, the retaining becomes wrongful and fraudulent. Thus retention of money by a servant authorized to collect t from a person may be criminal misappropriation even though he retains it account of wages due to him.
A person retaining money paid by mistake will be guilty of criminal misappropriation. But there can he no criminal misappropriation of things which have actually been abandoned.
Leading cases.
Bhagiram v. Abar Done, R v, Sita.
Romesh Chunder v. Hiru Mandal
Criminal breath of trust:
A person commits criminal breach of trust if he:
1. Being in any manner entrusted with:
(a) property. or
(b) any dominion over property.
2. Dishonestly:
(a) misappropriates, or
(b) converts to his own use, that property, or
3. Dishonestly:
(a) uses, or
(b) disposes of, that property.
4. In violation:
(a) of any direction of law prescribing the mode in which such trust is to be discharged or
(b) of any legal contract, press or implied which he has made touching the discharge of such trust, or
5. Willfully suffers any other person so to do.
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Illustrations
(a) A, being executor to the will of a deceased person, dishonestly disobeys the law which directs him to divide t:ie 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 he returned on payment of a stipulated sum for warehouse- room. A dishonestly sells the goods. .4 has committed criminal breach of trust.
(c) A, residing in Dacca, is agent for Z, residing at Lahore, There is an express or implied contract between A and Z, that all sums remitting by Z to A shall he invested by A. according to 2’s direction. Z remits a lakh of rupees to A, with directions to A to invest the same in Company’s paper. A dishonestly disobey the directions and employs the money in his own business A has committed criminal breach of trust.
(d) But if A, in the last illustration, not dishonestly but i good faith, believing that it will he 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 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 in to a certain treasury all the public money which he holds, A dishonestly appropriates the money. A has committed criminal breach of trust.
(f) A carrier, is entrusted by Z with property to be carried by land or by water. A dishonestly misappropriate the property. A has committed criminal breach of trust.
Punishment for criminal breach of trust:
Whoever commits criminal, breach of trust shall be punished with imprisonment of either description for a term which may extend to seven years, or line, or with both.
Aggravated forms:
The following are aggravated forms of RIOt1 breach of trust, Criminal breach of trust by a carrier,
wharfing, or ware housekeeper. (S. 407) Criminal breach of trust by a public’ servant, tanker, merchant, Factor, broker, attorney or agent. (S. 409)
Criminal misappropriation and criminal reach of trust:
Following is the difference between criminal misappropriation and Criminal breach of Trust--
In criminal misappropriation the property comes into the possession of the offender by some casualty or otherwise and he afterwards misappropriates it. In the case of criminal breach of trust the offender is lawfully entrusted with the property and he dishonestly misappropriates the same, or willfully suffers any other person to do so, instead of discharging the trust attached to it.
2. In criminal misappropriation there is no contractual relationship, hut there is such a relationship in criminal breach of trust.
3. In criminal misappropriation there is the conversion of property coming into possession of the offender anyhow, but in criminal breach of trust there is the conversion of property held in a fiduciary character.
4. A breach of trust includes criminal misappropriation, but the converse is not always true.
Theft and criminal breach of trust:
In the former there is a wrongful taking of a movable property out of the possession of the owner, i.e. by stealth without the owner’s knowledge, but in the latter the property is given on trust or received on one’s behalf and instead of discharging the trust, it is dishonestly misappropriated or used or disposed of in violation of the law. The owner here parts with something in good faith but the person who takes it keeps the thing for himself. In theft there is no prior lawful possession; the offence is completed as soon as the property is dishonestly taken away, but in criminal breach of trust the offender prior to the offence is himself in possession of the property and the offence is completed when he dishonestly converts the same to his own use. Then in theft the property involved is a movable property, but in criminal breach of trust it may be any property. Criminal breach of trust is ordinarily punished with the same severity as theft but where there is a greater degree of trust as in the case of a carrier, or a clerk or a servant entrusted with his master’s property or in the case of a public servant or banker, heavier punishment is provided under Sections 407,408 and 409, P.PC.