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Indian Penal CodeSection 406

Section 406: Punishment for criminal breach of trust

Bailable OffenseCognizableNon-compoundable

In Simple Words

This section applies when you trust someone with your money or property (e.g. giving gold to a jeweler, or handing money to a business partner), and they dishonestly misuse or keep it for themselves instead of returning it.

Punishment & Penalties

Up to 3 years in prison, or fine, or both. Bailable (varies), Cognizable.

Real-Life Case Example

Meera leaves her diamond necklace with a trusted friend for safekeeping while she is traveling abroad. When she returns, the friend refuses to return it, claiming she never received it. This is a criminal breach of trust.

Frequently Asked Questions (FAQs)

What is Section 406 of IPC?

Punishment for criminal breach of trust. In simple terms: This section applies when you trust someone with your money or property (e.g. giving gold to a jeweler, or handing money to a business partner), and they dishonestly misuse or keep it for themselves instead of returning it.

Is Section 406 of IPC a bailable offense?

Section 406 is classified as a Bailable offense. This means the accused can obtain bail as a matter of right from the police station.

What is the punishment for Section 406 of IPC?

Up to 3 years in prison, or fine, or both. Bailable (varies), Cognizable.

Can Section 406 of IPC be quashed by the High Court?

Section 406 is Non-compoundable (cannot be settled out of court). However, the High Court has inherent powers under Section 482 of CrPC / Section 528 of BNSS to quash FIRs in certain categories of disputes if the parties reach a compromise.

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Act: Indian Penal Code (1860)
Jurisdiction: Supreme Court & State Courts of India
Last Updated: May 2026