Section 409 IPC: Criminal breach of trust by public servant, or by banker, merchant or agent

Indian Penal Code, 1860

Section 409 IPC at a Glance

Section 409 IPC deals with criminal breach of trust by public servant, or by banker, merchant or agent. It is non-bailable and cognizable, triable by Magistrate of the first class; from 1 July 2024 it is replaced by Section 316(5) BNS.

Punishment

Imprisonment for life, or imprisonment of either description for a term which may extend to ten years.

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Magistrate of the first class ⓘ

BNS Equivalent

Section 316(5) →

Section 409 IPC Bare Act Text

409. Criminal breach of trust by public servant, or by banker, merchant or agent
Whoever, being in any manner entrusted with property, or with any dominion over property in his capacity of a public servant or in the way of his business as a banker, merchant, factor, broker, attorney or agent, commits criminal breach of trust in respect of that property, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.

Source: Section 409, Indian Penal Code, 1860

Section 409 IPC in Simple Words

Section 409 of the Indian Penal Code (IPC) punishes criminal breach of trust committed by a public servant or by any person in the way of business as a banker, merchant, factor, broker, attorney, or agent. Whoever, being entrusted in any such capacity with property or with any dominion over property, commits criminal breach of trust in respect of that property is punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten 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 not compoundable under Section 320 CrPC.

Ingredients of Section 409 IPC

The accused was in any manner entrusted with property, or with any dominion over property
The entrustment was in the capacity of a public servant, or in the way of business as a banker, merchant, factor, broker, attorney or agent
The accused committed criminal breach of trust in respect of that property

Punishment Under Section 409 IPC

Imprisonment

Imprisonment for life, or imprisonment of either description for a term which may extend to ten years.

Fine

The offender is also liable to fine. The statute does not prescribe a mandatory fine or fix a maximum amount.

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Magistrate of the first class ⓘ

Criminal breach of trust by a public servant or commercial agent carries imprisonment for life, or imprisonment of either description up to ten years, and liability to fine.

Example of Section 409 IPC

In 2019, Meera appointed Harish, a licensed stockbroker in Surat, to manage her investment portfolio and entrusted him with dominion over five hundred equity shares of a textile company under a written brokerage agreement. Under the agreement, Harish was instructed to hold the shares in custody and sell them only upon Meera's written authorization. Instead, in the way of his business as a broker, Harish dishonestly sold the shares without her consent and used the sale proceeds to pay off his personal gambling debts, thereby committing criminal breach of trust in respect of the entrusted property. Harish is punishable under Section 409 IPC.

When Section 409 IPC Does Not Apply

Section 409 IPC does not apply when the accused was never entrusted with the property or given any dominion over it.
Section 409 IPC does not apply when the property was handed over in a private or personal capacity rather than as a public servant or in the course of business as a banker, merchant, factor, broker, attorney, or agent.
Section 409 IPC does not apply when the person entrusted with the property did not dishonestly misappropriate, convert, use, or dispose of it in a manner constituting criminal breach of trust.
Section 409 IPC does not apply when the loss of the entrusted property resulted purely from an accidental mistake or honest business loss without any dishonest intention.

Section 409 IPC in the BNS

Section 409 IPC is now covered under Section 316(5) BNS.

Section 409 IPC corresponds to Section 316(5) BNS. Section 316(5) BNS reproduces the text and penalties of Section 409 IPC without substantive change, providing imprisonment for life, or imprisonment of either description for a term which may extend to ten years, and liability to fine. The provision is consolidated into Section 316(5) BNS as its fifth sub-section, retaining all the specified professional and public capacities.

View detailed comparison (IPC 409 vs BNS 316(5)) →

FAQs on Section 409 IPC

What does Section 409 IPC punish?▼

Section 409 IPC punishes criminal breach of trust committed by a public servant in that capacity, or by any person in the way of business as a banker, merchant, factor, broker, attorney, or agent.

What is the punishment under Section 409 IPC?▼

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

Is Section 409 IPC bailable and cognizable?▼

Under the First Schedule to the Code of Criminal Procedure, 1973, an offence under Section 409 IPC is cognizable and non-bailable, and is triable by a Magistrate of the first class.

Can an offence under Section 409 IPC be compounded?▼

No. Section 409 IPC is not listed in Section 320 CrPC, so it cannot be compounded.

Which capacities are covered by Section 409 IPC?▼

Section 409 IPC covers persons entrusted with property in the capacity of a public servant, or in the way of business as a banker, merchant, factor, broker, attorney, or agent.

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