Section 306 BNS: Theft by clerk or servant of property in possession of master

Bharatiya Nyaya Sanhita, 2023

Section 306 BNS at a Glance

Section 306 BNS deals with theft by clerk or servant of property in possession of master. It is non-bailable and cognizable, triable by any Magistrate; it replaced Section 381 IPC on 1 July 2024.

Punishment

Imprisonment of either description for a term which may extend to seven years

Non-Bailable ⓘCognizable ⓘCompoundable (with court permission) ⓘ🏛️ Any Magistrate ⓘ
IPC Equivalent

Section 381 →

Section 306 BNS Bare Act Text

306. Theft by clerk or servant of property in possession of master

Whoever, being a clerk or servant, or being employed in the capacity of a clerk or servant, commits theft in respect of any property in the possession of his master or employer, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Source: Section 306, Bharatiya Nyaya Sanhita, 2023

Section 306 BNS in Simple Words

Section 306 BNS of the Bharatiya Nyaya Sanhita (BNS) deals with theft committed by a clerk or servant of property that is in the possession of the master or employer. The key point is the relationship of trust. The law treats this offence more seriously because the accused is already inside the employer’s confidence and has access to goods, cash, records, or other property by virtue of employment.

This section applies when a clerk, servant, or similar employee dishonestly takes property from the employer’s possession without consent and with the intention to steal. It is not limited to cash. It can cover stock, office property, valuables, or any item under the employer’s control.

In practice, this section is often used in workplace theft cases where the accused had lawful access but misused that access for dishonest gain. It helps employers and investigators distinguish ordinary theft from breach of trust linked to employment.

Ingredients of Section 306 BNS

  • Employment of the accused as a clerk or servant, or working in that capacity
  • Commission of theft of property in the possession of the master or employer
  • Punishment of imprisonment of either description extending up to seven years and liability to fine preserved under Section 306 BNS

Punishment Under Section 306 BNS

Imprisonment

Imprisonment of either description for a term which may extend to seven years

Fine

Liable to fine

Non-Bailable ⓘCognizable ⓘCompoundable (with court permission) ⓘ🏛️ Any Magistrate ⓘ

Section 306 BNS punishes theft by a clerk or servant of property in the possession of the master or employer with imprisonment of either description for up to seven years, and liability to fine. The offence is cognizable, non-bailable, triable by any Magistrate, and compoundable by the owner of the property stolen with the permission of the court.

Example of Section 306 BNS

In an electronics showroom in Surat, Dinesh worked as a warehouse billing clerk responsible for inventory checking. At closing time, Dinesh concealed two tablet computers belonging to the showroom stock inside his backpack and walked out of the store without billing them or informing the shop owner. Because the devices were movable property in the possession of his employer and Dinesh moved them dishonestly without consent while employed as a clerk, his conduct amounts to theft by a clerk under Section 306 BNS. Dinesh is liable to imprisonment of either description extending up to seven years, and is also liable to fine.

When Section 306 BNS Does Not Apply

  • The accused was not a clerk or servant, or employed in that capacity, in relation to the person in possession
  • The property was not in the possession of the master or employer at the time of the theft
  • The property was taken with the consent of the master or under an honest bona fide claim of right
  • The property was entrusted to the accused in a custodial capacity creating criminal breach of trust under Section 316(4) BNS rather than theft

Section 306 BNS in the IPC (Previous Law)

Section 306 BNS replaces Section 381 IPC from the old criminal code.

Section 381 IPC corresponds to Section 306 BNS. The heading, essential ingredients, and punishment of imprisonment of either description extending up to seven years and liability to fine are reenacted verbatim in the Bharatiya Nyaya Sanhita. The substantive standard for aggravated theft arising from the employment relationship of clerk or servant remains identical.

View IPC Section 381 →

FAQs on Section 306 BNS

Who can be charged under Section 306 BNS?▼

A clerk, servant, or employee who steals property from the possession of the employer can be charged under this section. The core issue is the employment relationship and the misuse of access given by that relationship.

Does Section 306 BNS apply only to cash theft?▼

No. It can apply to any movable property in the employer’s possession, such as stock, tools, office items, or valuables. The item stolen does not have to be money.

Under Section 306 BNS, is prior access to the property enough for conviction?▼

No. The prosecution must still prove dishonest taking and intent to steal. Mere access or handling of property in the course of work is not enough by itself.

Under Section 306 BNS, can the case be settled privately?▼

Yes, with the permission of the court. The owner of the stolen property may compound the offence with the court's permission.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Bharatiya Nyaya Sanhita, 2023 · Last updated: 16 Oct 2026 ·