Section 381 IPC: Theft by clerk or servant of property in possession of master
Indian Penal Code, 1860
Section 381 IPC at a Glance
Section 381 IPC deals with theft by clerk or servant of property in possession of master. It is non-bailable and cognizable, triable by any Magistrate; from 1 July 2024 it is replaced by Section 306 BNS.
Imprisonment of either description for a term which may extend to seven years
Section 381 IPC Bare Act Text
381. 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 381, Indian Penal Code, 1860
Section 381 IPC in Simple Words
Section 381 of the Indian Penal Code (IPC) punishes theft committed by a clerk or servant of property in the possession of the master or employer. Where an employee or person engaged in that capacity commits theft of property held by the employer, the law prescribes enhanced punishment.
The offence is punishable with imprisonment of either description for a term extending to seven years, and the offender is also liable to fine. Under the First Schedule to the Code of Criminal Procedure, the offence is cognizable and non-bailable, triable by any Magistrate.
It is compoundable under Section 320(2) CrPC by the owner of the stolen property, but only with the permission of the court.
Ingredients of Section 381 IPC
- The accused was a clerk or servant, or employed in the capacity of a clerk or servant
- The property was in the possession of the master or employer
- The accused committed theft of that property as defined under Section 378 IPC
Punishment Under Section 381 IPC
Imprisonment of either description for a term which may extend to seven years
Liable to fine
Section 381 IPC 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 under Section 320(2) CrPC by the owner with the permission of the court.
Example of Section 381 IPC
When Section 381 IPC Does Not Apply
- Section 381 IPC does not apply when the person who steals the property is neither a clerk or servant nor employed in that capacity by the person in possession.
- Section 381 IPC does not apply when the stolen goods were in the possession of a third party rather than in the possession of the master or employer.
- Section 381 IPC does not apply when the employee removes the item with the employer's consent or without dishonest intention.
- Section 381 IPC does not apply when the property was already entrusted to the employee's independent dominion rather than remaining in the employer's possession.
Section 381 IPC in the BNS
Section 381 IPC is now covered under Section 306 BNS.
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 detailed comparison (IPC 381 vs BNS 306) →FAQs on Section 381 IPC
What conduct is punished under Section 381 IPC?▼
Section 381 IPC punishes theft committed by a clerk or servant of property in the possession of their master or employer.
What punishment is prescribed under Section 381 IPC?▼
The punishment is imprisonment of either description for a term extending to seven years, and the offender is also liable to fine.
Does Section 381 IPC cover a person not formally employed as a clerk or servant?▼
Yes; it covers any person being a clerk or servant, or employed in the capacity of a clerk or servant.
Is the fine under Section 381 IPC mandatory?▼
No; the statute provides that the offender shall also be liable to fine rather than prescribing a mandatory fine.
Is Section 381 IPC bailable?▼
No; Section 381 IPC is classified as non-bailable under the First Schedule to the Code of Criminal Procedure.
Is an offence under Section 381 IPC cognizable?▼
Yes; Section 381 IPC is a cognizable offence.
Which court conducts trials under Section 381 IPC?▼
Offences under Section 381 IPC are triable by any Magistrate.
Can an offence under Section 381 IPC be compounded?▼
Yes; Section 381 IPC is compoundable under Section 320(2) CrPC by the owner of the stolen property with the permission of the court.
How does Section 381 IPC differ from criminal breach of trust under Section 408 IPC?▼
Section 381 IPC applies where the employee moves property in the master possession, whereas Section 408 IPC applies where the employee misappropriates property entrusted to their custody.
Which section corresponds to Section 381 IPC in the Bharatiya Nyaya Sanhita?▼
Section 306 BNS corresponds to Section 381 IPC.
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Sources: Bare Act Text, Indian Penal Code, 1860 · Last updated: 16 Oct 2026 ·