Indian Penal Code, 1860
Section 409
repealedCriminal breach of trust by public servant, or by banker, merchant or agent
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.
Why this exists
Public servants and professionals like bankers, merchants, brokers, and agents are entrusted with property because of the special positions of authority or professional responsibility they hold, and the public relies heavily on their integrity. This section imposes the most severe punishment among the breach of trust provisions because betrayal by such trusted professionals can cause widespread harm to public funds or commercial trust. Under the Bharatiya Nyaya Sanhita, 2023, this corresponds to Section 316(5).
How courts read it
Courts require clear proof that the accused held one of the specified capacities, public servant, banker, merchant, factor, broker, attorney, or agent, at the time of the entrustment, since this status is what triggers the enhanced punishment under this section rather than a lower one. This section has frequently been invoked in cases involving misappropriation of government funds by officials and embezzlement by bank employees or trustees handling client money.
Common misconceptions
- Myth: This section only applies to government officials.
Fact: It also covers bankers, merchants, factors, brokers, attorneys, and agents acting in the course of their business, not just public servants.