Punishment for criminal breach of trust

Is IPC Section 406 bailable?

This is a bailable offence, meaning bail can generally be granted as a matter of right by the police or the court.

What is the punishment under this section?

Imprisonment up to 3 years, or fine, or both. Courts have discretion based on the facts of each case, and the actual outcome can vary.

Can a case under this section be compounded (settled)?

Yes, but only with the permission of the court. The parties can reach a settlement, which the court must then approve before the case is closed.

What is the difference between criminal breach of trust and cheating (Section 420)?

Cheating involves deceiving someone from the outset to dishonestly induce them to hand over property. Criminal breach of trust involves property that was lawfully entrusted to the accused, who only later misappropriates it — the dishonest intent arises after, not before, they received the property.

Does this section apply to employer-employee relationships?

Yes — it commonly applies where an employee, cashier, or agent entrusted with money or goods on the employer’s behalf dishonestly misappropriates them, which is a frequent basis for such complaints.

What does the prosecution typically need to prove?

They must establish that the accused was entrusted with the property or given dominion over it, and that they dishonestly misappropriated, converted, or disposed of it contrary to the terms of that trust — mere negligence or an honest business loss does not meet this standard.