Section 408 IPC: Criminal breach of trust by clerk or servant

Indian Penal Code, 1860

Section 408 IPC at a Glance

Section 408 IPC deals with criminal breach of trust by clerk or servant. It is non-bailable and cognizable, triable by Magistrate of the first class; from 1 July 2024 it is replaced by Section 316(4) BNS.

Punishment

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

Non-Bailable ⓘCognizable ⓘCompoundable (with court permission) ⓘ🏛️ Magistrate of the first class ⓘ
BNS Equivalent

Section 316(4) →

Section 408 IPC Bare Act Text

408. Criminal breach of trust by clerk or servant

Whoever, being a clerk or servant or employed as a clerk or servant, and being in any manner entrusted in such capacity with property, or with any dominion over property, commits criminal breach of trust in respect of that property, 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 408, Indian Penal Code, 1860

Section 408 IPC in Simple Words

Section 408 of the Indian Penal Code (IPC) punishes criminal breach of trust committed by a clerk or servant. Whoever, being a clerk or servant or employed as a clerk or servant, and being in any manner entrusted in such capacity with property, or with any dominion over property, commits criminal breach of trust in respect of that property is punished with imprisonment of either description for a term which may extend to seven years, and is also liable to fine.

Under the First Schedule to the Code of Criminal Procedure, 1973, the offence is cognizable, non-bailable, and triable by a Magistrate of the first class. The offence is compoundable with the permission of the court by the owner of the property under Section 320(2) CrPC.

Ingredients of Section 408 IPC

  • The accused was a clerk or servant, or employed as a clerk or servant
  • The accused was in any manner entrusted in that capacity with property, or with any dominion over property
  • The accused committed criminal breach of trust in respect of that property

Punishment Under Section 408 IPC

Imprisonment

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

Fine

The offender is also liable to fine. The statute does not make fine mandatory and prescribes no fixed limit.

Non-Bailable ⓘCognizable ⓘCompoundable (with court permission) ⓘ🏛️ Magistrate of the first class ⓘ

Criminal breach of trust by a clerk or servant is punished with imprisonment of either description for up to seven years and liability to fine.

Example of Section 408 IPC

In 2016, Girish employed Manoj as a domestic servant at his house in Indore and entrusted him in that capacity with forty boxes of Alphonso mangoes to distribute to Girish's relatives across the city. Instead of delivering the boxes as instructed by his employer, Manoj dishonestly sold thirty boxes at a fruit market and kept the money for himself. Because Manoj was employed as a servant, was entrusted in that capacity with dominion over the mango boxes, and committed criminal breach of trust by dishonestly converting them to his own use, Manoj is punishable under Section 408 IPC.

When Section 408 IPC Does Not Apply

  • The person who misappropriated the property was an independent contractor or acquaintance rather than a clerk or servant.
  • Although employed as a clerk or servant, the accused was not entrusted with the property or dominion over it in that capacity.
  • The clerk or servant used or accounted for the entrusted property honestly and in accordance with the employer's instructions.
  • A shortfall in goods or money held by a clerk resulted purely from an accidental accounting error without any dishonest intention.

Section 408 IPC in the BNS

Section 408 IPC is now covered under Section 316(4) BNS.

Section 408 IPC corresponds to Section 316(4) BNS. Section 316(4) BNS reproduces the text and punishment of the IPC provision without substantive change, retaining imprisonment of either description for a term which may extend to seven years and liability to fine. The offence is now placed as the fourth sub-section of Section 316(4) BNS, which consolidates the general definition and the aggravated forms of criminal breach of trust.

View detailed comparison (IPC 408 vs BNS 316(4)) →

FAQs on Section 408 IPC

What does Section 408 IPC punish?▼

Section 408 IPC punishes a clerk or servant who, being entrusted in that capacity with property or dominion over property, commits criminal breach of trust in respect of that property.

What is the punishment under Section 408 IPC?▼

The punishment is imprisonment of either description for a term which may extend to seven years, and the offender is also liable to fine.

Is Section 408 IPC bailable and cognizable?▼

Under the First Schedule to the Code of Criminal Procedure, 1973, an offence under Section 408 IPC is cognizable and non-bailable, and is triable by a Magistrate of the first class.

Can an offence under Section 408 IPC be compounded?▼

Yes. Under Section 320(2) CrPC, an offence under Section 408 IPC can be compounded with the permission of the court by the owner of the property in respect of which the breach of trust was committed.

Who qualifies as a clerk or servant under Section 408 IPC?▼

Section 408 IPC applies to any person who is a clerk or servant, or employed as a clerk or servant, and who is entrusted with property or dominion over property in that capacity.

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Sources: Bare Act Text, Indian Penal Code, 1860 · Last updated: 16 Oct 2026 ·