Dishonest Misappropriation of Property - Section 403

Dishonest Misappropriation of Property is referred to as the conversion of the movable property to one’s own use where it should be done with the wrongful intention. The punishment for this can extend up to 2 years or a fine or both.

Section 403 and 404, IPC relates to the criminal misappropriation of property. Section 403 defines criminal misappropriation and prescribes the punishment for the offense and Section 404 deals with the misappropriation of the deceased person's property. The word misappropriation means a dishonest appropriation, and use of another's property for the sole purpose of capitalizing it for one's own use.

Criminal misappropriation takes place when the possession has come innocently but is continued due to a subsequent change of intention or after knowledge of some new fact with which the party was not previously acquainted. The retaining of property becomes wrongful and fraudulent when the fact is known. The major difference between theft and the criminal misappropriation of the property is that in the case of the theft the property is being taken without the permission of the owner whereas in the case of the misappropriation of the movable property the owner knows about the possession of the property and the person who has the property, misappropriates the property.

The term Dishonestly has been defined under section 24 of the IPC which states that the act was done by a wrongful intention with the intention to cause the wrongful gain or loss can be referred to as the ‘Dishonestly’

The wrongful gain and the wrongful loss have been described under section 23 of the IPC which states that if any gain or loss has been incurred by the unlawful means then the person gaining or losing shall be not entitled to that gain or the loss. As the gain or loss is illegal in nature.

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Nature of Offence: The punishment for this offense is imprisonment for 2 years or a fine or both. It is a non-cognizable offense. It is a bailable offense. But as this offense is bailable in nature the bail can be granted by the police and the court on the bail bonds. This offense is triable by any magistrate. This offense is compoundable by the owner of the property misappropriated.

Ingredients of the Offence 

1. The property must be misappropriated or there must be the conversion of the property.

2. The misappropriation must be done with wrongful intention.

3. Complaints can be made by the owner of the misappropriated property.

4. There is no requirement of entrustment for the offense to occur. This ingredient was held in the case of the Pramode Mategaonkar,(1965) 2CrLJ 562.

5. In the case of the Mahabir Prasad Garodia v. the State of Assam, AIR 1961 Assam 132 it was held that the dishonest Misappropriation of Property is referred to as the conversion of the movable property to one’s own use where it should be done with the wrongful intention. There must be the misappropriation of the property. When an accused found a thing and retained it in his possession then he will not be charged under this offense.

6. Finder of Goods - The intention of the accused at the time of the offense is taken into the consideration. The dishonest trait shall be considered and at that the time of the offense it must be made sure that the possession was done with the intention of the dishonesty. So the men’s rea shall be matching with the actus rea.