Essential ingredients to attract the offence of criminal breach of trust punishable under section 406 PPC.

i)  There should be an entrustment by a person who reposes confidence in the other, to whom  property is entrusted.

ii) The person in whom the confidence is placed, dishonestly misappropriates or converts to his own use, the property entrusted.

iii) He dishonestly uses or disposes of that property in violation of any direction (naeem)of law prescribing the mode in which such trust is to be discharged.

iv)  He dishonestly uses or disposes of that property in violation of any legal contract, express or implied, which he has made touching the discharge of such trust. 

The major ingredient of the above offence was that accused must have been entrusted with some property. He should hold the property in a fiduciary capacity. The term “entrust” has been used in its legal meaning and not in its dictionary meaning or popular sense. Accused should have property in his possession otherwise than for himself. Said penal provision attracts only when owner of the property makes it over to accused to be retained by him until a certain contingency arises or to be disposed of by him/accused on the happening of certain event or to be disposed of in the light of certain terms and conditions of the trust. 

Crl. Misc. No. 12913-B of 2025 

Majid Ali. Vs State