What is IPC Section 407?
criminal breach of trust by a carrier, wharfinger or warehouse-keeperIPC Section 407 dealt with criminal breach of trust by a carrier, wharfinger or warehouse-keeper. It applied where property was entrusted to such a person and the person committed criminal breach of trust in respect of that property.
The corresponding provision under the Bharatiya Nyaya Sanhita, 2023 is BNS Section 316(3), which covers criminal breach of trust by a carrier, wharfinger or warehouse-keeper.
Important Update: IPC to BNS Transition
The Indian Penal Code was repealed for new offences from 1 July 2024. The corresponding provision is BNS Section 93, which carries substantially the same wording and punishment for exposure and abandonment of a child under twelve years.
Legal Provision — Text of Section 407 IPC
Explanation:Section 407 specifically applied the offence of criminal breach of trust to property entrusted to a carrier, wharfinger or warehouse-keeper.
criminal breach of trustThe prosecution must establish entrustment of the property in the relevant capacity and the ingredients of criminal breach of trust. A mere failure to perform a contract does not automatically establish the offence.
Punishment Under IPC Section 407
| Maximum Punishment | Imprisonment of either description up to 7 years and fine |
|---|---|
| Cognizable | Yes |
| Bailable | No |
| Triable By | Magistrate of the First Class |
| BNS Equivalent | Section 316(3), Bharatiya Nyaya Sanhita, 2023 |
| Nature | Aggravated form of criminal breach of trust based on the capacity of the accused |
IPC Section 407 prescribed imprisonment up to seven years and fine. Historically, the offence was cognizable, non-bailable and triable by a Magistrate of the First Class.
Key Ingredients / Essential Elements
For an allegation under Section 407 to be established, the following elements were important:
Entrustment of Property
Property must have been entrusted to the accused or placed under the accused’s dominion.
Relevant Capacity
The accused must have received the property as a carrier, wharfinger or warehouse-keeper.
Criminal Breach of Trust
There must be dishonest misappropriation, conversion, use or disposal amounting to criminal breach of trust.
Dishonest Conduct
The prosecution must prove the dishonest conduct required for criminal breach of trust.
Connection With Entrusted Property
The alleged breach must relate to the property that was entrusted in the relevant capacity.
What Should You Do — For Complainants and Accused
Cases under Section 407 are fact-sensitive. Evidence of entrustment, the accused’s capacity, the property involved and the alleged dishonest conduct can be important.
If You Believe Entrusted Property Was Misappropriated
- Preserve contracts, consignment records, receipts, delivery documents and communications showing entrustment.
- Record when and how the property was handed over and the capacity in which the accused received it.
- Keep invoices, stock records, tracking details, witness information and other evidence relating to the property.
- Seek legal advice on the appropriate criminal and civil remedies.
If You Are Accused Under Section 407
- Preserve documents showing the scope of your responsibility and the terms on which the property was received.
- Examine whether the prosecution can prove entrustment to you specifically as a carrier, wharfinger or warehouse-keeper.
- Collect records showing delivery, return, loss, damage, disposal or accounting for the property.
- Seek legal advice promptly about bail, defence and any connected civil or criminal proceedings.
Entrustment vs Mere Contractual Dispute
Section 407 requires the ingredients of criminal breach of trust. A contractual dispute or failure to perform a commercial obligation does not by itself establish criminal breach of trust; the required entrustment and dishonest conduct must be proved.
Complaint, FIR & Court Process Under Section 407
Entrustment and Capacity Are Identified
The complainant identifies the property entrusted and the accused’s role as carrier, wharfinger or warehouse-keeper.
Documents and Property Records Are Collected
Consignment records, receipts, contracts, stock registers, delivery records and communications may become relevant.
Alleged Breach and Dishonest Conduct Are Examined
The investigation considers how the property was dealt with and whether the evidence supports criminal breach of trust.
FIR and Investigation
Section 407 was historically cognizable and non-bailable. Police investigation could include statements, documentary evidence and recovery or tracing of property.
Court Proceedings and Bail
The offence was historically triable by a Magistrate of the First Class. Bail and defence strategy depend on the facts, evidence and applicable procedural law.
Important / Landmark Principles on Criminal Breach of Trust
The Supreme Court explained that criminal breach of trust requires the necessary entrustment and dishonest misappropriation or conversion; a mere breach of contract does not automatically become a criminal offence.
The Supreme Court considered the concept of entrustment and the relationship between entrustment, dominion over property and criminal breach of trust.
The special feature of Section 407 is the accused’s capacity as a carrier, wharfinger or warehouse-keeper. The ordinary ingredients of criminal breach of trust must still be established in relation to the entrusted property.