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Saturday 25 August 2012

Law Against Dishonest Misappropriation Of Property


Ever wondered what legal consequences could follow if you, for example,  pick up an unclaimed  hundred rupee note lying on the road and happily use it for your own gains. 

Well, your action could be labelled as criminal misappropriation. 







As per Section 403 of IPC criminal misappropriation means dishonestly misappropriating or converting to one's own use any movable property. The term "dishonestly" under law means doing anything with the intention of unlawfully gaining a property to which the person gaining is not legally entitled or unlawfully causing loss of such property to any person to which the person losing is entitled. 

The prescribed punishment for this offence is imprisonment for a term which may extend to two years, or with fine, or with both.

Illustrations

(a) A takes property belonging to Z out of Z’s possession, in good faith believing, at the time when he takes it, that the property belongs to himself. A is not guilty of theft; but if A, after discovering his mistake, dishonestly appropriates the property to his own use, he is guilty of an offence under this section.

(b) A, being on friendly terms with Z, goes into Z’s library in Z’s absence, and takes away a book without Z’s express consent. Here, if A was under the impression that he had Z’s implied consent to take the book for the purpose of reading it, A has not committed theft. But, if A afterwards sells the book for his own benefit, he is guilty of an offence under this section.

(c) A and B, being joint owners of a horse, A takes the horse out of B’s possession, intending to use it. Here, as A has a right to use the horse, he does not dishonestly misappropriate it. But, if A sells the horse and appropriates the whole proceeds to his own use, he is guilty of an offence under this section.

Explanation 1.—A dishonest misappropriation for a time only is a misappropriation within the meaning of this section.

Illustration

A finds an ornament belonging to Z. A, knowing that it belongs to Z, pledges it with a banker as a security for a loan, intending at a future time to restore it to Z. A has committed an offence under this section. Even though he may intend to return the money and the ornament. The offence is complete the moment A pledges it and takes the money.

Explanation 2.—A person who finds property not in the possession of any other person, and takes such property for the purpose of protecting it for, or of restoring it to, the owner, does not take or misappropriate it dishonestly and is not guilty of an offence ; but he is guilty of the offence above defined, if he appropriates it to his own use, when he knows or has the means of discovering the owner, or before he has used reasonable means to discover and give notice to the owner and has kept the property a reasonable time to enable the owner to claim it.

What are reasonable means or what is a reasonable time in such a case will vary from circumstances in one case to another.

It is not necessary that the finder should know who is the owner of the property, or that any particular person is the owner of it ;  the offence is committed if, at the time of appropriating it, he does not believe it to be his own property, or in good faith believe that the real owner cannot be found.

Illustrations

(a) A finds a rupee on the high road, not knowing to whom the rupee belongs. A picks up the rupee. Here A has not committed the offence defined in this section. Only picking up an abandoned note is not an offence. The offence is committed when the person picking it up nurtures a bona fide belief that it's real owner can be found but still uses the money without attempting to search for him.

(b) A finds a letter on the road, containing a bank note. From the direction and contents of the letter he learns to whom the note belongs. He appropriates the note. He is guilty of an offence under this section.

(c) A finds a cheque payable to bearer. He can form no conjecture as to the person who has lost the cheque. But the name of the person, who has drawn the cheque, appears. A knows that this person can direct him to the person in whose favour the cheque was drawn. A appropriates the cheque without attempting to discover the owner. He is guilty of an offence under this section.

(d) A sees Z drop his purse with money in it. A picks up the purse with the intention of restoring it to Z, but afterwards appropriates it to his own use. A has committed an offence under this section.

(e) A finds a purse with money, not knowing to whom it belongs ; he afterwards discovers that it belongs to Z, and appropriates it to his own use. A is guilty of an offence under this section.

(f) A finds a valuable ring, not knowing to whom it belongs. A sells it immediately without attempting to discover the owner. A is guilty of an offence under this section.







4 comments:

  1. nice information,We should never use other's property without their proper consent in that regard.Truly amazed to read,someone is guilty of an offence if he picks up an abandoned note.
    Nice one.

    ReplyDelete
    Replies
    1. Thanks for reading, Gunjan. But only picking up an abandoned note is not an offence. The offence is committed when the person picking it up nurtures a bona fide belief that it's real owner can be found but still uses the money without attempting to search for him.

      Delete
  2. I am sure more than 50% of the country's population can be charged with this offence if picking up an abandoned note is a crime in this regard :D Some laws are just broken without anybody bothering about it rt?

    ReplyDelete
    Replies
    1. I am repeating for the second time (after saying it to Gunjan).

      Only picking up an abandoned note is not an offence. The offence is committed when the person picking it up has a reason to belief that it's real owner can be found but still uses the money without attempting to search for him.

      Thanks for reading Jayashree.

      Delete