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IPC 1860REPEALED

Section 404-424

Dishonest Misappropriation; Criminal Breach of Trust by Carrier/Wharfinger; CBT by Clerk; CBT by Public Servant; Stolen Property; Receiving Stolen Property; Assisting in Concealment; Cheating — All Forms; Fraudulent Deed Execution; Fraudulent Removal of Property

Replaced by: BNS BNS 314-333

Non-Bailable (serious forms)Cognizable: Cognizable (most)Varies
THE STATUTE

Original Text

Section 407: Whoever, being entrusted with property as a carrier, wharfinger or warehousekeeper, 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. Section 408: 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. Section 409: 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.

Simplified

Sections 404–424 address the complete misappropriation, CBT, receiving stolen property, and cheating ecosystem. Section 409 (CBT by public servant or banker — life imprisonment) is one of the most severe CBT provisions and forms the legal basis for most major banking fraud prosecutions. The spectrum: Section 406 (basic CBT — 3 years) → Section 407 (CBT by carrier/warehousekeeper — 7 years) → Section 408 (CBT by clerk/servant — 7 years) → Section 409 (CBT by public servant/banker — life). Sections 410–414 address the receiving stolen property ecosystem: Section 410 (stolen property — definition), Section 411 (receiving stolen property — 3 years), Section 412 (receiving property stolen in dacoity — life), Section 413 (habitually dealing in stolen property — life), Section 414 (assisting concealment of stolen property — 3 years). Sections 415–424 complete the cheating cluster: Section 417 (basic cheating — 1 year), Section 418 (cheating with knowledge of harm to creditors — 1 year), Section 419 (cheating by personation — 3 years), Section 420 (property fraud — 7 years, already covered), Section 421 (fraudulent removal of property — 2 years), Section 422 (dishonestly preventing debt recovery — 2 years), Section 423 (dishonest execution of deed — 2 years), Section 424 (dishonest removal of property from creditor — 2 years).

Legal Evolution

Sections 404-424 govern criminal breach of trust and cheating — the IPC's framework for offences involving abuse of confidence and deceptive inducement. Macaulay's drafters recognized that commercial society required specific criminal protection against dishonesty that fell short of physical theft. The extensive definitional provisions (Sections 405, 415) and the graduated punishment scheme (based on the nature of the entrusted relationship) remain the primary basis for commercial fraud prosecution in India.

Landmark Precedents

Mohd. Ibrahim v. State of Bihar (2009)

(2009) 8 SCC 751
RELEVANCE

Clarified CBT (Section 405/406) versus cheating (Section 415/420) — CBT requires prior entrustment; cheating requires deception at the inception of the transaction.

Practical Scenarios

"A bank branch manager who diverts fixed deposits to personal accounts — Section 409 (life imprisonment)."
"Knowingly buying stolen gold from a thief at a heavily discounted price — Section 411 (receiving stolen property, 3 years)."

Common Queries

Section 409 (CBT by banker — life imprisonment or up to 10 years). The bank is also potentially liable under Section 11 (corporate person).
Only if you knew or had reason to believe the property was stolen — Section 411 requires 'knowing or having reason to believe' the property is stolen.