BNS § 316 · In force since 1 July 2024
Section 316 BNS — Criminal breach of trust
IPC 405 to 409 in one section. The definition is unchanged; the punishment for simple criminal breach of trust goes up from three years to five.
In short
- Replaces
- IPC 406 — and 405, 407, 408, 409, folded into one section
- Punishment
- Up to 5 years, or fine, or both, under 316(2); up to life under 316(5)
- Bail
- 316(2): non-bailable · cognizable · Magistrate of the first class
- Which law applies
- Offence before 1 July 2024 → IPC 406. On or after → BNS 316(2).
The text
(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 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 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.
(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.
Sub-section (1) is followed by six illustrations, (a) to (f), in the Act.
Source: Official BNS Gazette text. BNSS First Schedule and savings provision. NCRB old-to-new section table.
What changed from the IPC
Five IPC sections became one. Only the punishment for the basic offence went up. The comparison below summarises the former IPC provisions; it is not a verbatim reproduction.
IPC 405
Dishonest misappropriation, conversion, use or disposal of entrusted property in violation of law or the applicable contract, including wilfully allowing another person to do so.
BNS 316(1)Same definition
Same words, with both Explanations. Renumbered only.
IPC 406
Up to three years of imprisonment, or fine, or both.
BNS 316(2)Punishment raised
… may extend to five years, or with fine, or with both.
IPC 407, 408, 409
Carrier or warehouse-keeper: up to seven years and fine. Clerk or servant: up to seven years and fine. Public servant, banker or specified agent: life or up to ten years, and fine.
BNS 316(3)–(5)Renumbered
Same terms: seven years and fine; seven years and fine; life or ten years and fine.
Bail, cognizance and court
| Section | Offence | Punishment | Cognizable | Bail | Tried by |
|---|---|---|---|---|---|
| 316(2) | Criminal breach of trust | 5 yrs, or fine, or both | Yes | Non-bailable | Magistrate of the first class |
| 316(3) | By a carrier, wharfinger or warehouse-keeper | 7 yrs and fine | Yes | Non-bailable | Magistrate of the first class |
| 316(4) | By a clerk or servant | 7 yrs and fine | Yes | Non-bailable | Magistrate of the first class |
| 316(5) | By a public servant, banker, merchant or agent | Life, or 10 yrs, and fine | Yes | Non-bailable | Magistrate of the first class |
BNSS, First Schedule. Compoundable by the owner of the property: 316(3) without the court’s permission (s. 359(1)); 316(2) and 316(4) with it (s. 359(2)). 316(5) is in neither table.
Which law applies
Which section do I charge?
IPC 406
Offence committed on or before 30 June 2024. FIR may be later.
BNS 316(2)
Offence committed on or after 1 July 2024.
The date of the offence decides it — not the date of the FIR or charge-sheet (BNS s. 358; Article 20(1) of the Constitution). The five-year term applies only to an offence committed on or after 1 July 2024.
Charged together with 316
Questions advocates ask
Is 406 IPC bailable?
No. BNS 316(2) is cognizable and non-bailable, triable by a Magistrate of the first class. The maximum is five years, so police must meet BNSS s. 35(1)(b) before arresting, and otherwise issue a notice under s. 35(3).
Can I be charged with both cheating and criminal breach of trust?
The statutory ingredients differ. BNS 318 concerns deception and the specified inducement; BNS 316 requires entrustment or dominion over property and the specified dishonest dealing with it. Assess the allegations against each provision instead of assuming that one label establishes the other.
Does every failure to return property establish breach of trust?
No. The elements in BNS 316(1), including entrustment or dominion and the required dishonest dealing with the property, must be established. A payment or property dispute alone does not answer those questions.
Does the five-year term apply to a 2023 offence?
No. An offence before 1 July 2024 stays under IPC 406 and its lower maximum; a heavier penalty cannot apply retrospectively (Article 20(1)).