Criminal Misappropriation of Property IPC

Criminal Misappropriation of Property under IPC

1. Definition (Section 403 IPC)

Criminal Misappropriation of Property is defined in Section 403 of the IPC as follows:

"Whoever dishonestly misappropriates or converts to his own use any movable property,*
either belonging to himself or to another,
*shall be punished as provided in Section 403."

2. Explanation of Key Terms

Dishonestly: The act must be done with a dishonest intention to permanently deprive the owner of the property.

Misappropriation: Wrongful use or conversion of property by a person who has lawfully come into possession of it.

Movable property: Property that can be moved from one place to another (e.g., money, goods).

Conversion to one’s own use: Treating someone else's property as one's own.

3. Essential Ingredients

To constitute criminal misappropriation, the following must be proved:

The accused was in lawful possession of the property.

The property belongs to another person.

The accused dishonestly converts the property for their own use.

The act is done without the consent of the owner.

4. Difference Between Criminal Misappropriation and Theft

AspectCriminal MisappropriationTheft
Possession of PropertyAccused is in lawful possession of the propertyAccused takes possession without consent
ActDishonest conversion or use of propertyDishonestly taking property from another
Nature of CrimeViolation of trust or misuseIllegal acquisition

5. Punishment (Section 403 IPC)

Imprisonment for up to two years, or

Fine, or

Both.

6. Related Sections

Section 404 IPC: Punishment for criminal misappropriation of property possessed by a deceased person at the time of death.

Section 405 IPC: Criminal breach of trust (a more serious offence involving entrustment).

Section 406 IPC: Punishment for criminal breach of trust.

7. Important Case Laws

Case 1: K.K Verma v. State of Rajasthan (AIR 1957 SC 709)

Held that possession must be lawful and dishonesty must be established to prove misappropriation.

Case 2: R.V. Dnyaneshwarrao v. State of Maharashtra (AIR 1972 SC 934)

Distinguished criminal misappropriation from criminal breach of trust, emphasizing entrustment.

8. Example

If a person is entrusted with money for a specific purpose but uses it for his own benefit without permission, it amounts to criminal misappropriation.

 

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