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Report No. 60

14.11. Supreme Court case & section 405, Penal Code & section 105, Insurance Act.-

In this connection, we may also refer to the important Supreme Court case of State of Bombay v. S.L. Apte, AIR 1961 SC 578 (581), para. 13.. The charge in that case was under section 405, I.P.C.1 and section 105, Insurance Act. The Court regarded the two offences as distinct. The analysis by the Court may be quoted-

"(1) Whereas under section 405 of the Indian Penal Code the accused must be 'entrusted' with property, or with "dominion over that property", under section, 105 of the Insurance Act the entrustment of dominion over property is unnecessary; it is sufficient if the manager, director etc. "obtains possession" of the property.

(2) The offence of criminal breach of trust (section 405 of the Indian Penal Code) is not committed unless the act of misappropriation or conversion or "the disposition in violation of the law or contract", is done with a dishonest intention; but section 105 of the Insurance Act postulates no intention, and punishes as an offence the more withholding of the property-whatever be the intent with which the same is done; and the act of application of the property of an insurer to purposes other than those authorised by the Act is similarly punishable without reference to any intent with which application or misapplication is made. In these circumstances, it does not seem possible to say that the offence of criminal breach of trust under the Indian Penal Code is the "same offence" for which the respondents were prosecuted on the complaint of the company charging them with an offence under section 105 of the Insurance Act."

1. Section 405, IPC-Criminal breach of trust.

General Clauses Act, 1897 Back

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