Introduction of 306 BNS
306 BNS deals with theft committed by clerks, servants, or employees who steal property from their employers. This provision highlights the seriousness of theft committed in a position of trust, as it not only causes financial harm but also damages the employer-employee relationship. By prescribing strict punishment of up to seven years of imprisonment and fine, the law aims to deter employees from misusing their access to their master’s property. It ensures accountability, workplace integrity, and respect for the trust placed in employees
The Bharatiya Nyaya Sanhita (BNS) Section 306 replaces the old Indian Penal Code (IPC) Section 381.
What is BNS Section 306 ?
BNS Section 306 specifically addresses theft committed by a clerk, servant, or someone employed in that capacity, involving property belonging to their employer or master. This section highlights a breach of trust, making it a severe offense. Here’s a detailed breakdown:

Under Section 306 of the bns act 2023
“Whoever, being a clerk or servant, or employed in that capacity, commits theft in respect of any property in the possession of his master or employer, shall be punished with imprisonment which may extend to seven years, and shall also be liable to fine.”
1. Meaning of Theft by Clerk or Servant
This section covers situations where an employee, clerk, or servant commits theft of their employer’s property.
- It is more serious than ordinary theft because it involves breach of trust.
- The property may include money, goods, valuables, or assets entrusted to the employee.
- Example: A cashier stealing company funds or a domestic servant taking jewelry from the employer’s home.
2. Who is Covered?
This law applies to:
- Clerks or cashiers handling money or accounts.
- Domestic servants or helpers working in homes.
- Employees with access to company goods, stores, or property.
- Managers or supervisors misusing entrusted property.
The section is broad enough to include anyone working in the capacity of clerk or servant.
3. Nature of the Offense
- Cognizable → Police can register a case and arrest without a Magistrate’s approval.
- Non-bailable → Bail is not a matter of right; it depends on the court’s discretion.
- Non-compoundable → The case cannot be settled privately between employer and employee.
- Triable by Any Magistrate → Ensures that cases are heard efficiently and justice is accessible.
4. Examples of BNS Section 306
- Example 1 – Clerk Theft: A company accountant transfers money from the firm’s account into his personal account. → Covered under Section 306.
- Example 2 – Domestic Servant Theft: A housemaid steals expensive ornaments from her employer’s locker. → Punishable under this section.
- Example 3 – Store Theft: A warehouse employee takes goods from stock and sells them secretly. → Liability under Section 306.
5. Punishment under BNS Section 306
- Imprisonment: Up to 7 years.
- Fine: A monetary penalty may also be imposed.
- Both: Courts may apply both imprisonment and fine depending on the seriousness of the offense.
6. Importance of BNS Section 306
- Protects employer trust → reinforces accountability in workplaces and homes.
- Deters employee fraud/theft → strict penalties discourage misuse of entrusted property.
- Strengthens honesty in employment → emphasizes the duty of employees to act faithfully.
- Balances power → ensures employers have legal remedies against betrayal.
Section 306 BNS Overview
BNS Section 306 deals with theft committed by a clerk, servant, or employee in respect of property belonging to their employer. It highlights theft by someone in a position of trust and responsibility. The law punishes such acts with imprisonment for up to 7 years and a fine. This provision ensures that employees cannot misuse their access to property. The section reinforces trust and accountability in employer-employee relationships.
BNS 306 : 10 Key Points
1. Definition of the Offense
306 criminalizes theft committed by employees such as clerks or servants against their employer’s property. This includes stealing any goods, money, or assets entrusted to them. The trust placed in employees is broken when they commit theft, making the crime more severe than general theft. It is designed to safeguard employers from fraudulent activities by those in trusted positions.
2. Applicability of the Section
This section applies to anyone employed as a clerk or servant who commits theft of their employer’s property. The act of theft can involve money, valuables, or other possessions under the employer’s custody. The law ensures that no employee can take advantage of their access to the employer’s resources without consequences.
3. Nature of the Crime
Theft by a clerk or servant is classified as a cognizable offense. This means the police can register a case and initiate investigations without prior approval from a magistrate. The cognizable nature ensures swift action to protect the employer’s interests and recover stolen property promptly.
4. Punishment under BNS Section 306
The section prescribes imprisonment of up to seven years and a fine for offenders. This punishment underscores the seriousness of the offense, as it not only involves theft but also a betrayal of trust. The severity of the punishment aims to deter similar crimes in the workplace.
5. Bailable or Non-Bailable Offense
The offense under this section is non-bailable, meaning the accused does not have the automatic right to bail. They must apply for bail in court, where the seriousness of the crime will be considered before granting it. This provision ensures accountability and discourages misuse of bail.
6. Non-Compoundable Nature of the Crime
BNS Section 306 is non-compoundable, which means the case cannot be settled out of court between the employer and the offender. The law mandates that the legal process must be followed to ensure justice. This provision reflects the seriousness of the offense and its broader implications on employer-employee relationships.
7. Trust and Responsibility
Employees often have direct access to their employer’s money, goods, or property due to the trust placed in them. BNS 306 highlights the responsibility that comes with this trust. A clerk handling company finances or a servant managing household valuables must act with integrity. Breaching this trust attracts strict legal consequences.
8. Examples of the Offense
- Example 1: A cashier at a retail store steals cash from the register.
- Example 2: A domestic servant takes jewelry from their employer’s locker without consent.
These examples illustrate how theft by trusted employees can occur in various scenarios, making BNS 306 a critical law for protection.
9. Legal Process and Trial
The offense is triable by any magistrate, ensuring accessibility to justice. Employers can lodge a complaint, and the magistrate conducts the trial based on evidence provided. This streamlined legal process ensures fairness and prevents unnecessary delays in handling such cases.
10. Significance of BNS Section 306
This section reinforces the importance of ethical conduct in professional and personal spaces. By punishing theft committed by employees, it builds a sense of accountability and discourages misuse of trust. Employers are assured legal recourse, fostering a safer and more reliable workplace or household environment.
2 Examples of BNS Section 306
- Example 1: A bank clerk diverts funds from customer accounts to their personal account without authorization. This act violates BNS Section 306 and is punishable under this law.
- Example 2: A domestic helper takes expensive electronics from their employer’s house and sells them for personal profit. This constitutes theft by a servant and falls under BNS Section 306.
BNS 306 Punishment
Imprisonment: The offender can be sentenced to imprisonment for up to seven years.
Fine: The court may also impose a monetary fine, depending on the gravity of the theft.

BNS 306 bailable or not ?
BNS Section 306 is non-bailable, meaning the accused does not have the right to bail automatically. The court evaluates the case’s facts before deciding whether bail is appropriate.
Comparison: BNS Section 306 vs IPC Section 381
Section | Offense | Punishment | Bailable / Non-Bailable | Cognizable / Non-Cognizable | Trial By |
---|---|---|---|---|---|
BNS Section 306 | Theft by a clerk, servant, or employee of property belonging to their master or employer. | Imprisonment up to 7 years and fine. | Non-bailable | Cognizable | Any Magistrate |
IPC Section 381 (Old) | Theft committed by a clerk or servant of property in possession of the master or employer. | Imprisonment up to 7 years and fine. | Non-bailable | Cognizable | Any Magistrate |
BNS Section 306 FAQs
1. What is covered under BNS Section 306?
This section covers theft committed by an employee, clerk, or servant who has access to the property of their employer. If an employee steals cash, goods, or valuables entrusted to them or under their supervision, it falls under this law. For example, a warehouse manager stealing stored products can be charged under this section.
2. What is the punishment under BNS Section 306?
The punishment includes imprisonment of up to 7 years and a fine. The severity depends on the value of the stolen property and the circumstances of the theft. Courts may impose both imprisonment and a fine if the theft is significant, such as stealing a large amount of money.
3. Is BNS Section 306 a bailable offense?
No, it is a non-bailable offense, meaning the accused cannot automatically get bail. The court decides whether to grant bail based on the seriousness of the theft. This ensures that employees who commit theft cannot easily escape legal consequences.
4. Is BNS Section 306 cognizable?
Yes, it is a cognizable offense, allowing the police to register a case and start an investigation without prior approval from a magistrate. This ensures that employers can promptly report theft, and authorities can take immediate action.
5. Why is theft by employees treated differently?
Theft by employees is considered more severe because it involves a breach of trust. Employers rely on their workers to handle property honestly, and theft disrupts this trust. To protect employer-employee relationships and ensure accountability, this law prescribes stricter penalties.
6. Can an employer recover stolen property under this BNS 306 ?
Yes, employers can recover stolen property if the investigation proves the theft and the stolen items are found. Courts may also order restitution, where the convicted employee compensates the employer for the loss. This ensures justice for the affected employer.
Conclusion
BNS Section 306 is a crucial safeguard against theft in workplaces and households where employees have direct access to property. By recognizing this form of theft as a serious breach of trust, the law ensures that employers are legally protected when their faith in employees is betrayed. The provision’s classification as cognizable and non-bailable underlines its gravity, while the punishment of up to seven years of imprisonment with fine serves as a strong deterrent. This section reinforces trust, honesty, and accountability as essential values in professional and personal relationships.
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