316 BNS : Criminal breach of trust.

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Introduction of 316 BNS

316 BNS defines and punishes criminal breach of trust, where a person entrusted with property misuses it dishonestly or against legal or contractual obligations. This section applies to employees, agents, carriers, public servants, bankers, and others in positions of trust. The law provides strict penalties, including imprisonment of up to 10 years or even life imprisonment for serious breaches, highlighting the importance of honesty in entrusted roles.

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The Bharatiya Nyaya Sanhita (BNS) Section 316 replaces the old Indian Penal Code (IPC) Section 405,406,407,408,409.

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What is BNS Section 316 ?

BNS Section 316 criminalizes the dishonest misappropriation of property by a person who is entrusted with it, either directly or through a legal contract. This includes people such as employees, agents, carriers, and public servants who misuse property entrusted to them. The law defines several scenarios where this offense can occur, including failure to follow legal or contractual obligations regarding property.

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Under Section 316 of the bns act 2023

“Whoever, being entrusted with any property, or having control over it, dishonestly misappropriates or converts it to his own use, or violates any direction of law or contract by which the trust is to be discharged, shall be punished according to the nature of his position and the gravity of the breach, with imprisonment or fine, or both.”

1. Meaning of Criminal Breach of Trust

• This section criminalizes dishonesty in handling property entrusted to someone.
• The offense happens when a person misuses, converts, or misappropriates property given in trust, whether under law, contract, or professional responsibility.
• It differs from theft: in theft, property is taken without consent; here, property is given with trust but misused dishonestly.

2. Who is Covered?

• Employees → Clerks, servants, or workers using employer’s property for personal gain.
• Warehouse keepers / carriers / custodians → Misusing goods kept for safekeeping or transport.
• Public servants, bankers, agents, merchants → Using entrusted funds or property against law or trust.
• General persons → Anyone who dishonestly uses property entrusted by another individual.

3. Nature of the Offense

• Cognizable → Police can arrest without warrant.
• Non-Bailable → Bail is not a matter of right, only court discretion.
• Non-Compoundable → Cannot be settled privately; must go through court.
• Triable by → Magistrate of First Class (depending on gravity, higher courts may be involved).

4. Examples of BNS Section 316

Example 1 – Clerk Misusing Money
A clerk is given ₹50,000 to deposit in the company’s account. Instead, he uses the money for personal expenses. → Criminal breach of trust.

Example 2 – Warehouse Keeper
A warehouse-keeper is entrusted with 100 bags of rice. He sells 20 bags secretly for profit. → Breach of trust under this section.

Example 3 – Public Servant Misusing Funds
A government officer entrusted with relief funds diverts part of it for personal property purchase. → Severe breach of trust with stricter punishment.

5. Punishment under BNS Section 316

• General breach of trust (316(2)) → Up to 5 years imprisonment or fine, or both.
• Warehouse keeper, carrier, etc. (316(3)) → Up to 7 years imprisonment and fine.
• Clerk or servant (316(4)) → Up to 7 years imprisonment and fine.
• Public servant, banker, merchant, agent (316(5)) → Life imprisonment, or up to 10 years imprisonment, plus fine.

6. Importance of BNS Section 316

• Protects property given in trust from dishonest misuse.
• Ensures accountability in employment, commercial, and public service sectors.
• Strengthens confidence in professional and fiduciary relationships.
• Acts as a deterrent against corruption, misuse of office, and employee dishonesty.

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Criminal breach of trust under bns / Section 316 BNS Overview

BNS Section 316 deals with Criminal Breach of Trust, which happens when a person who has been entrusted with property dishonestly misuses or misappropriates it. This offense includes situations where the person in charge of property uses it against the legal agreement or in violation of the trust given to them.

The law covers various roles such as:

• Employees, like clerks or servants, who misuse property entrusted to them.
• Warehouse keepers, carriers, or anyone who is in charge of holding or transporting goods but dishonestly converts those goods to their own use.
• Public servants, bankers, merchants, and agents who breach trust by misusing property or money they are entrusted with.

Detailed Explanation of BNS Section 316: Criminal Breach of Trust

1. Criminal Breach of Trust Defined:
   • Section 316 of the Bharatiya Nyaya Sanhita (BNS) deals with the offense of criminal breach of trust. This occurs when a person who is entrusted with property or has dominion over it, dishonestly uses or misappropriates it for their own benefit.
   • The law applies if someone, in a position of trust, violates that trust and misuses the property in a dishonest way. For example, a manager who uses the company’s funds for personal expenses can be charged under this section.
2. Key Elements of the Offense:
   • The person must be entrusted with property or dominion over property.
   • The breach occurs when the person uses the property in a way that violates the trust given to them, such as converting the property for personal use or acting in violation of an explicit or implied contract.
3. Examples of Criminal Breach of Trust:
   • A warehouse keeper who is entrusted with goods and then sells them without permission commits a criminal breach of trust.
   • An agent who is given money by a client to invest but uses it for their own purposes would also be guilty of this offense.
4. Punishment for Criminal Breach of Trust (General):
   • The general punishment for criminal breach of trust, under Section 316(2), is imprisonment for up to 5 years, or a fine, or both.
   • This ensures that the punishment fits the crime, with the aim of preventing misuse of trust.
5. Punishment for Breach of Trust by Warehouse Keeper, Carrier:
   • Section 316(3) applies to people like warehouse keepers, carriers, and wharfingers who are entrusted with property.
   • If they commit criminal breach of trust, the punishment is up to 7 years of imprisonment and a fine, highlighting the serious consequences for those in charge of safeguarding goods or property.
6. Punishment for Breach of Trust by Clerk or Servant:
   • Section 316(4) specifically targets clerks or servants who are entrusted with property in their professional capacity.
   • If they misuse this property, they can be sentenced to up to 7 years of imprisonment, plus a fine. This emphasizes the seriousness of such breaches, even by employees.
7. Punishment for Public Servants and Professionals:
   • Section 316(5) sets a harsher penalty for public servants, bankers, merchants, and other professionals entrusted with property.
   • If they commit criminal breach of trust, they face life imprisonment or up to 10 years of imprisonment and a fine. This reflects the higher level of trust expected from such individuals.
8. Cognizable and Non-Bailable Offense:
   • Criminal breach of trust is a cognizable offense, meaning that the police can arrest the accused without a warrant if there is enough evidence.
   • It is also non-bailable, meaning the person accused cannot easily get bail until the court decides on the case. This ensures that those accused of this serious offense remain accountable.
9. Non-Compoundable Offense:
   • This offense is non-compoundable, which means it cannot be settled through an agreement between the victim and the accused.
   • The case must proceed in court, ensuring justice is delivered and preventing such cases from being overlooked or dismissed outside the legal system.
10. Role of Trust and Accountability:

• The section underlines the importance of trust in professional and personal relationships. It makes it clear that when someone is entrusted with property, they have a legal obligation to handle it with care and honesty.
• Failure to do so not only harms the person whose property was misused but also undermines the integrity of the trust system in society.

Examples of Criminal Breach of Trust (BNS Section 316):

1. Example 1:
   • Scenario: A warehouse-keeper, A, is entrusted with furniture belonging to Z for safekeeping. A sells the furniture without Z’s consent.
   • Breach: A has committed criminal breach of trust because they misused property entrusted to them for storage.
   • Punishment: A could face up to seven years imprisonment and a fine.
2. Example 2:
   • Scenario: A clerk, B, is entrusted with a sum of money by their employer, Z. B uses the money for personal purposes rather than for the intended business expenses.
   • Breach: B has committed criminal breach of trust because they dishonestly used the property for their own gain.
   • Punishment: B would face up to seven years imprisonment and a fine.

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316 BNS Punishment

Punishment

• For criminal breach of trust, the punishment can be up to 5 years of imprisonment, or a fine, or both.
• In more severe cases, such as for public servants or bankers, the punishment can extend to life imprisonment or up to 10 years.

Fine

• A fine can be imposed alongside imprisonment for criminal breach of trust, depending on the severity of the offense.
• The fine amount is determined by the court, based on the case’s circumstances.

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316 BNS bailable or not ?

The offense under BNS Section 316 is non-bailable. This means that the accused cannot seek bail as a matter of right. The court has discretion over whether to grant bail based on the case’s facts and severity.

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Comparison: BNS Section 316 vs IPC Sections 405–409 (Old)

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BNS Section 316 FAQs

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Conclusion

BNS Section 316 ensures accountability when individuals betray trust by misusing property placed under their responsibility. By prescribing different levels of punishment based on the offender’s role—such as clerks, warehouse keepers, or public servants—the law protects property owners and reinforces public confidence in professional and personal dealings. It acts as a deterrent against dishonesty, safeguarding both individual property rights and the integrity of social trust.

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