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BNS 2024ACTIVE FRAMEWORK
Section 306
Theft by Clerk or Servant of Property in Possession of Master
Replaces colonial-era: IPC 381
Non-BailableCognizable: CognizableMagistrate First Class
Reform Highlights
1
Renumbered from IPC 381 to BNS 306.
2
7-year maximum preserved.
3
Covers all employment relationships — formal and informal.
THE STATUTE
The Clause
Whoever, being a clerk or servant, or being employed in the capacity of a clerk or servant, commits theft in respect of any property in the possession of his master or employer, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Legal Commentary
Section 306 creates an aggravated theft offence for employees who steal from their employers. The rationale for the enhanced punishment (7 years versus 3 years for standard theft) is the breach of trust inherent in the employment relationship — an employer who hires a servant or clerk grants them access to property on the basis of trust, and stealing from that position of trust is morally more culpable than opportunistic theft. The scope is broad: 'clerk or servant' includes domestic workers, office employees, shop assistants, drivers, and any person employed in any capacity who is given access to property by virtue of their employment. The provision covers both property directly given to the employee and property accessible to them through their work.
Case Simulations
"An office accountant who steals cash from the petty cash box — Section 306."
"A domestic cook who steals jewellery from the house — Section 306."
"A shop assistant who pockets merchandise during their shift — Section 306."
Expert Insights
Yes — a domestic worker is employed in the capacity of a servant. Stealing any property in the employer's possession attracts Section 306 (7 years) rather than simple theft under Section 303 (3 years).