BACK TO SECTIONS(2009) 13 SCC 200
Non-BailableCognizable: CognizableMagistrate First Class
THE STATUTE
Original Text
Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
Simplified
Section 406 provides the standard punishment for CBT — 3 years, non-bailable and cognizable. Aggravated forms carry higher punishments: CBT by a carrier, wharfinger, or warehouse keeper (Section 407 — 7 years); CBT by agents (Section 408 — 7 years); CBT by bankers, merchants, factors, attorneys, or public servants (Section 409 — life imprisonment or 10 years). The standard 3-year Section 406 is the most commonly charged form in domestic and employment disputes, while Section 409 applies to institutional fraud.
Landmark Precedents
Babu Bhai Udesia v. State of Gujarat (2009)
RELEVANCE
CBT under Section 406 is established when an employer deducts PF contributions from salaries but fails to remit them — the deduction creates entrustment of the employees' money.
Practical Scenarios
"A domestic helper who runs away with the family's valuables after being entrusted with access — Section 406."
"An employee who embezzles petty cash over months — Section 406."
Common Queries
Yes — criminal breach of trust under Section 406 is non-bailable, highlighting its gravity as a violation of fiduciary trust.