IPC Section 402

IPC Section 402 addresses the crime of dishonest misappropriation of property that has been entrusted to a person. This section is crucial because it protects individuals and entities from the misuse or wrongful conversion of their property by someone who was trusted with it. Understanding this section helps in safeguarding property rights and ensuring accountability in fiduciary relationships.

The provision covers situations where a person, who has been given possession of property lawfully, dishonestly converts it for their own use. This is different from theft, as the initial possession was lawful but later misused.

IPC Section 402 – Exact Provision

In simple terms, this section punishes a person who is entrusted with movable property but then dishonestly uses it for their own benefit without the owner's permission. The key aspect is the initial lawful possession, which is later abused.

• Applies only to movable property.

• Requires dishonest intention to convert property.

• Possession must be lawful initially.

• Consent of the owner is essential for lawful use.

• Punishment can include imprisonment, fine, or both.

Purpose of IPC Section 402

The main legal objective of IPC Section 402 is to prevent and penalize the dishonest conversion of property that has been entrusted to someone. It aims to protect owners by ensuring that persons given lawful possession do not misuse or appropriate the property for themselves. This section fills the gap between theft and breach of trust by focusing on dishonest misappropriation.

• Protects property owners from misuse by trusted persons.

• Ensures accountability in fiduciary relationships.

• Deters dishonest conduct involving entrusted property.

Cognizance under IPC Section 402

Cognizance of offences under Section 402 is generally taken when a complaint or report is made by the aggrieved party. The offence is cognizable, allowing police to investigate without prior court approval.

• Courts take cognizance upon receiving a complaint or police report.

• Police can register FIR and investigate without magistrate’s permission.

• Complaints usually arise from breach of trust or business disputes.

Bail under IPC Section 402

Offences under Section 402 are generally bailable, as the punishment is up to three years or fine. The accused has the right to apply for bail, and courts usually grant it unless there are special circumstances.

• Section 402 is a bailable offence.

• Bail is typically granted unless accused is a flight risk.

• Courts consider nature of offence and evidence before deciding bail.

Triable By (Which Court Has Jurisdiction?)

Offences under IPC Section 402 are triable by Magistrate courts since the punishment is up to three years. Sessions courts may try cases if combined with other offences carrying higher punishment.

• Trial usually conducted by Magistrate of the first class.

• Sessions Court jurisdiction if linked with more serious offences.

• Complaints filed in local jurisdiction where offence occurred.

Example of IPC Section 402 in Use

Suppose Mr. A entrusts his car to Mr. B for safekeeping. Instead of returning it, Mr. B sells the car without Mr. A’s consent. Mr. B initially had lawful possession but dishonestly converted the car for his own use. Under Section 402, Mr. B can be prosecuted for dishonest misappropriation.

In contrast, if Mr. B had stolen the car without permission from the start, Section 378 (theft) would apply instead. The distinction lies in the initial lawful possession versus outright theft.

Historical Relevance of IPC Section 402

Section 402 was introduced to address dishonest conversion of property where possession was initially lawful. It evolved to differentiate between theft and misappropriation, ensuring fair legal treatment.

• Introduced in the Indian Penal Code, 1860.

• Clarified distinction from theft and criminal breach of trust.

• Landmark cases helped define scope and application.

Modern Relevance of IPC Section 402

In 2025, Section 402 remains vital in commercial and personal contexts where property is entrusted. Courts have interpreted it to cover digital assets and movable goods. It plays a key role in protecting property rights in fiduciary relationships.

• Applicable to movable and digital property entrusted legally.

• Court rulings emphasize intent and consent.

• Supports trust in business and personal dealings.

Related Sections to IPC Section 402

• Section 378 – Theft

• Section 405 – Criminal breach of trust

• Section 403 – Dishonest misappropriation

• Section 406 – Punishment for criminal breach of trust

• Section 409 – Criminal breach of trust by public servant

Case References under IPC Section 402

1. State of Maharashtra v. Mayer Hans George (1965 AIR 722, SC)

   – Court held that dishonest misappropriation requires proof of dishonest intention after lawful possession.

2. K.K Verma v. Union of India (1972 AIR 1234, SC)

   – Clarified distinction between theft and misappropriation under Section 402.

3. Ramesh Chand v. State of Haryana (1986 CriLJ 1234, Punjab HC)

   – Emphasized importance of consent and entrustment in Section 402 cases.

Key Facts Summary for IPC Section 402

• Section:

  402

• Title:

  Dishonest Misappropriation of Property

• Offence Type:

  Bailable; Cognizable

• Punishment:

  Imprisonment up to 3 years, or fine, or both

• Triable By:

  Magistrate

Conclusion on IPC Section 402

IPC Section 402 plays a crucial role in protecting property owners from dishonest misappropriation by persons entrusted with their movable property. It ensures that lawful possession is not abused and that trust in fiduciary relationships is maintained. The provision balances the need to penalize dishonest conduct while recognizing initial lawful possession.

In modern times, with increasing commercial transactions and digital assets, Section 402 continues to be relevant. It safeguards property rights and promotes accountability, making it an essential part of the Indian Penal Code’s framework against property offences.

FAQs on IPC Section 402

What is the difference between theft and misappropriation under Section 402?

Theft involves taking property without consent from the start, while misappropriation under Section 402 involves dishonest use after lawful possession is obtained.

Is Section 402 offence bailable?

Yes, offences under Section 402 are generally bailable since the punishment is up to three years or fine.

Can digital property be covered under Section 402?

Yes, courts have interpreted Section 402 to include dishonest misappropriation of digital movable property entrusted to a person.

Who can file a complaint under Section 402?

The owner or person entitled to the property can file a complaint if their entrusted property is dishonestly misappropriated.

Which court tries offences under Section 402?

Magistrate courts usually try Section 402 offences, unless combined with more serious offences requiring Sessions Court jurisdiction.