BACK TO SECTIONSAIR 1965 SC 1433
BailableCognizable: Non-CognizableAny Magistrate
THE STATUTE
Original Text
Whoever dishonestly misappropriates or converts to his own use any movable property, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.
Simplified
Section 403 punishes dishonest misappropriation — where a person comes into innocent possession of property (e.g., finds it) and then converts it to their own use dishonestly. Unlike theft (where possession is taken by stealth), in Section 403 the initial possession is lawful or accidental. The offence crystallises when the person decides to keep or misuse the property rather than returning it to the rightful owner. The most common scenario: finding a wallet or mobile phone and keeping it rather than making reasonable efforts to locate the owner.
Legal Evolution
Section 403 on criminal misappropriation of property addresses the dishonest appropriation of moveable property that one has come into possession of legitimately — distinguishing it from theft (unauthorized taking) and criminal breach of trust (violation of entrustment). The two-year maximum reflects the less culpable nature of the offence compared to breach of trust. Courts have applied it to finders of lost property who dishonestly retain it and to persons who use another's property temporarily but permanently deprive them of it.
Landmark Precedents
Velji Raghavji Patel v. State of Maharashtra (1965)
RELEVANCE
Distinguished Section 403 (dishonest misappropriation) from Section 405 (CBT) — misappropriation requires lawful initial possession then dishonest conversion; no entrustment required.
Practical Scenarios
"Finding a lost phone and selling it rather than returning it — Section 403."
"A person who receives money by mistake in their bank account and spends it — Section 403."
Common Queries
Yes — if you make no effort to find the owner and instead use the contents for yourself, it is Dishonest Misappropriation under Section 403.