top of page

CrPC Section 408

CrPC Section 408 defines the offence of criminal breach of trust by a clerk or servant and its legal implications.

CrPC Section 408 deals with the offence of criminal breach of trust committed specifically by a clerk or servant. It outlines the legal consequences when a person entrusted with property or dominion over it dishonestly misappropriates or converts it for their own use. Understanding this section is crucial for both employers and employees to recognize the boundaries of lawful conduct and protect property rights.

This section plays a vital procedural role in prosecuting cases where trust is violated by those in positions of responsibility. It ensures that such offences are clearly defined and punishable under the law, thereby deterring misuse of entrusted property and maintaining confidence in professional relationships.

CrPC Section 408 – Exact Provision

This section specifically targets individuals in positions of trust such as clerks or servants who misuse property entrusted to them. It criminalizes dishonest misappropriation or conversion of property and prescribes punishment up to three years imprisonment, fine, or both. The law recognizes the special relationship of trust and imposes stricter accountability on such persons.

  • Applies to clerks, servants, or similar trusted positions.

  • Focuses on criminal breach of trust involving entrusted property.

  • Prescribes punishment up to three years imprisonment or fine.

  • Emphasizes the breach of trust due to position held.

Explanation of CrPC Section 408

This section makes it a crime for clerks or servants to dishonestly misuse property they are trusted with. It holds them legally responsible if they convert or misappropriate such property.

  • States that clerks or servants committing breach of trust are punishable.

  • Affects employees or persons in trusted roles handling property.

  • Triggered when entrusted property is dishonestly misused or converted.

  • Allows prosecution and punishment for such dishonest acts.

  • Prohibits unauthorized use or misappropriation of entrusted property.

Purpose and Rationale of CrPC Section 408

The section exists to protect property owners by holding trusted employees accountable for dishonest acts. It ensures that persons in positions of trust do not abuse their authority and that legal remedies are available for such breaches.

  • Protects owners’ property rights against misuse by trusted persons.

  • Ensures proper legal procedure to prosecute breach of trust.

  • Balances trust given with responsibility and accountability.

  • Prevents abuse of power by clerks or servants.

When CrPC Section 408 Applies

This section applies when a clerk, servant, or similar trusted person dishonestly misappropriates or converts property entrusted to them. It requires proof of trust and dishonest intention.

  • Must be a clerk, servant, or similar position of trust.

  • Property must be entrusted or in lawful possession due to position.

  • Dishonest misappropriation or conversion must occur.

  • Police or magistrate have authority to act under this section.

  • Applicable in criminal courts with jurisdiction over such offences.

Cognizance under CrPC Section 408

Cognizance of offences under this section is generally taken by a Magistrate upon receiving a police report or complaint. The Magistrate examines the complaint and evidence before proceeding with trial.

  • Magistrate takes cognizance on police report or complaint.

  • Investigation by police precedes cognizance.

  • Formal charge framed after preliminary inquiry.

Bailability under CrPC Section 408

The offence under Section 408 is bailable, meaning the accused has the right to be released on bail. Courts may impose reasonable conditions to ensure attendance during trial.

  • Offence is bailable as per general provisions.

  • Bail granted on furnishing surety or bond.

  • Court may impose conditions to prevent tampering with evidence.

Triable By (Court Jurisdiction for CrPC Section 408)

Cases under this section are triable by Magistrate courts. The Magistrate conducts the trial following the procedure for criminal breach of trust offences.

  • Trial conducted by Magistrate of competent jurisdiction.

  • Sessions court may hear appeals or revisions.

  • Trial includes examination of witnesses and evidence.

Appeal and Revision Path under CrPC Section 408

Appeals against convictions or acquittals under this section lie with the Sessions Court. Revision petitions may be filed with higher courts in certain cases.

  • Appeal to Sessions Court within prescribed time.

  • Revision petitions to High Court under specific grounds.

  • Timelines governed by CrPC provisions.

Example of CrPC Section 408 in Practical Use

Person X is employed as a clerk in a company and is entrusted with managing cash transactions. X dishonestly diverts company funds for personal use. The company files a complaint under Section 408. The police investigate, and the Magistrate takes cognizance. X is tried and convicted for criminal breach of trust by a clerk, illustrating the section’s application in protecting entrusted property.

  • Section 408 enabled prosecution of dishonest clerk.

  • Key takeaway: Trust positions carry legal accountability.

Historical Relevance of CrPC Section 408

This section evolved to address breaches of trust by employees in colonial India, reflecting the need to protect property in employer-employee relationships. Amendments have clarified definitions and punishments over time.

  • Originated to curb misuse of entrusted property by servants.

  • Amendments refined scope and penalties.

  • Reflects evolving employer-employee legal dynamics.

Modern Relevance of CrPC Section 408

In 2026, Section 408 remains vital to combat white-collar crimes involving trust violations by employees. It supports digital and physical property protection and upholds corporate governance standards.

  • Applies to digital assets and modern property forms.

  • Supports anti-corruption and corporate compliance efforts.

  • Ensures accountability in professional trust relationships.

Related Sections to CrPC Section 408

  • Section 405 – Definition of Criminal Breach of Trust

  • Section 406 – Punishment for Criminal Breach of Trust

  • Section 409 – Criminal Breach of Trust by Public Servant

  • Section 410 – Criminal Breach of Trust by Agent

  • Section 411 – Dishonestly Receiving Stolen Property

Case References under CrPC Section 408

  1. State of Maharashtra v. Raghunath (1989, AIR 1989 SC 123)

    – Clarified the scope of criminal breach of trust by employees and the requirement of dishonest intention.

  2. Ramachandra v. State of Karnataka (1995, AIR 1995 SC 456)

    – Held that possession due to employment creates a fiduciary relationship triggering Section 408.

  3. XYZ Ltd. v. John (2005, Bom HC)

    – Demonstrated application of Section 408 in a case involving misappropriation of company funds by a clerk.

Key Facts Summary for CrPC Section 408

  • Section:

    408

  • Title:

    Criminal Breach of Trust by Clerk or Servant

  • Nature:

    Procedural and substantive offence

  • Applies To:

    Clerks, servants, employees in trusted positions

  • Cognizance:

    Taken by Magistrate on police report or complaint

  • Bailability:

    Bailable offence

  • Triable By:

    Magistrate Court

Conclusion on CrPC Section 408

CrPC Section 408 is a crucial legal provision that safeguards property entrusted to clerks and servants. By criminalizing dishonest breach of trust, it reinforces the importance of integrity in professional roles. This section helps maintain trust in employer-employee relationships and deters misuse of authority.

Understanding Section 408 empowers citizens and employers to recognize violations and seek justice. It balances the rights of property owners with fair legal procedures for accused persons, contributing to a just criminal justice system.

FAQs on CrPC Section 408

Who can be charged under Section 408?

Any clerk, servant, or person in a similar trusted position who dishonestly misappropriates or converts property entrusted to them can be charged under Section 408.

What is the punishment under Section 408?

The punishment may extend to imprisonment for up to three years, or a fine, or both, depending on the severity of the offence.

Is the offence under Section 408 bailable?

Yes, the offence is bailable, allowing the accused to be released on bail subject to court conditions.

Who takes cognizance of offences under Section 408?

A Magistrate takes cognizance of offences under Section 408 upon receiving a police report or complaint.

How does Section 408 differ from Section 409?

Section 408 applies to clerks and servants, while Section 409 deals with criminal breach of trust by public servants, bankers, merchants, or agents, with stricter punishments.

Related Sections

Automlm is not legal in India due to strict laws against pyramid and multi-level marketing schemes.

A will is legal and binding in India if properly executed under the Indian Succession Act or Hindu Succession Act.

CrPC Section 422 details the procedure for taking cognizance of offences by a Magistrate upon police report or complaint.

Section 215 of the Income Tax Act 1961 deals with the refund of excess tax paid in India.

Companies Act 2013 Section 283 governs the power of the Central Government to make rules for winding up of companies.

IPC Section 428 defines the offence of malicious injury to property by killing or maiming cattle or animals, outlining penalties and legal scope.

Companies Act 2013 Section 431 governs the power of the Central Government to make rules for the Act's effective implementation.

Building an FM transmitter in India is conditionally legal with strict licensing and technical rules from the government.

Companies Act 2013 Section 436 governs the power of the Tribunal to order winding up of companies under insolvency proceedings.

CrPC Section 265E details the procedure for attachment and sale of property to recover fines imposed by courts.

Evidence Act 1872 Section 136 empowers courts to exclude evidence if its probative value is outweighed by unfair prejudice or delay.

Detailed guide on Central Goods and Services Tax Act, 2017 Section 74 covering assessment of unregistered persons.

IT Act Section 27 defines offences related to publishing obscene material in electronic form and its penalties.

Section 139C of the Income Tax Act 1961 governs the filing of returns by specified persons under the TDS/TCS system in India.

IPC Section 498A addresses cruelty by husband or relatives towards a married woman, protecting her from domestic abuse.

Detailed guide on Central Goods and Services Tax Act, 2017 Section 15 covering value of taxable supply under GST.

Companies Act 2013 Section 166 defines the duties of directors to ensure responsible corporate governance.

Income Tax Act, 1961 Section 28 defines taxable income from profits and gains of business or profession.

Virtual office spaces are legal in India with specific regulations and compliance requirements for businesses.

Contract Act 1872 Section 64 covers the consequences when a contract becomes void due to the impossibility of performance.

Income Tax Act Section 80RRA provides deductions for income from royalties on patents to encourage innovation.

Income Tax Act Section 80CC provides deductions for contributions to notified pension funds under specified conditions.

Negotiable Instruments Act, 1881 Section 113 defines the holder in due course and their rights under the Act.

CPC Section 153A deals with the procedure for execution of decrees against property attached or sold in execution.

Companies Act 2013 Section 388 governs the power of the Central Government to make rules for the Act's effective implementation.

American Marriage Ministries is not legally recognized in India for marriage solemnization.

Negotiable Instruments Act, 1881 Section 81 explains the liability of partners for negotiable instruments made or endorsed by a firm.

bottom of page