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Can Sections 406 & 420 IPC Be Tried Together?
In Indian criminal law, disputes often arise when complainants file cases under Section 406 (criminal breach of trust) and Section 420 (cheating) of the Indian Penal Code (IPC) simultaneously. But can these offenses be tried together? This question frequently surfaces in commercial and contractual disputes, where civil matters risk being criminalized. This post examines judicial precedents, essential ingredients, and when courts intervene to quash such proceedings.
Disclaimer: This article provides general information based on judicial decisions. It is not legal advice. Consult a qualified lawyer for case-specific guidance, as outcomes depend on facts.
Understanding the Offenses
Section 406 IPC: Criminal Breach of Trust
To establish Section 406, three key ingredients must be proven:
- Entrustment of property to the accused.
- Dishonest misappropriation or conversion to the accused's own use.
- Violation of legal or contractual directions regarding the property.
As noted in a Supreme Court ruling, the very first requirement of section 405, that is the person accused of criminal breach of trust must have been 'entrusted with ... the property' is absent in hypothecation without possession transfer. Indian Oil Corporation VS NEPC India LTD. - 2006 6 Supreme 66
Section 420 IPC: Cheating
Section 420 requires:
- Deception by the accused.
- Dishonest inducement to deliver property or consent to its retention.
- Harm or potential harm to the victim.
The Supreme Court clarified: The essential ingredients of the offence of cheating are: (i) deception... (ii) fraudulent or dishonest inducement... which act or omission causes or is likely to cause damage. Indian Oil Corporation VS NEPC India LTD. - 2006 6 Supreme 66
Can Trial of Section 406 and 420 Offenses Proceed Simultaneously?
Courts have repeatedly held that Sections 406 and 420 cannot coexist in many scenarios, especially contractual disputes. Here's why:
Mutually Exclusive Nature: Section 406 demands entrustment, while Section 420 involves obtaining property through deception without entrustment. In 406 entrustment of property is essential, while in 420, property is obtained by dishonest inducement and cheating, which is otherwise than entrustment. Kishore Singh Mertiya vs State of Rajasthan - 2024 Supreme(Online)(RAJ) 27051
Judicial Precedents on Incompatibility:
- In a Karnataka High Court case, charges under Sections 406, 420, and 120B were examined. The court ruled: the offences of cheating and criminal breach of trust cannot coexist; only the charge under Section 406 is sustained while the charge under Section 420 is quashed. Kola Thirumalaraju Vs State Of Karnataka - 2025 Supreme(Online)(KAR) 7588
- Similarly, in another matter: the offences 406 and 420 IPC cannot co-exist and quashed proceedings for Section 420 while sustaining the charge under Section 406. MR.KOLA THIRUMALARAJU vs STATE OF KARNATAKA DEPARTMENT OF HOME - 2025 Supreme(Online)(Kar) 27308
A Madras High Court decision affirmed: for the offences of cheating and criminal breach of trust, the necessary elements were absent. B.Murugeshan vs K.Prabhu - 2025 Supreme(Online)(Mad) 68892
Supreme Court Guidance: In IOC vs. NEPC India, the court analyzed complaints under multiple sections, quashing some but upholding others. It emphasized: A given set of facts may make out: (a) purely a civil wrong; or (b) purely a criminal offence; or (c) a civil wrong as also a criminal offence. However, mere breach of contract does not automatically trigger criminal liability. Indian Oil Corporation VS NEPC India LTD. - 2006 6 Supreme 66
When Courts Quash Simultaneous Proceedings
High Courts frequently quash FIRs or proceedings under Section 482 CrPC when:
- No Prima Facie Case: Allegations lack specifics on entrustment or initial dishonest intent. E.g., no criminal offences under IPC Sections 406 or 420 were established. Maya Rani W/O Late Vijay Kumar vs State of Jharkhand - 2025 Supreme(Jhk) 1926
- Civil Dispute Masquerading as Criminal: Criminal law cannot be used to resolve civil disputes, and vague allegations without clear evidence of criminal intent do not sustain charges. Kishore Singh Mertiya vs State of Rajasthan - 2024 Supreme(Online)(RAJ) 27051
- Abuse of Process: In hire-purchase cases, absence of mens rea leads to discharge. SANJAY CHAUDHARY VS SANGHI BROTHERS (INDORE) LTD - 2006 Supreme(MP) 1122
Key Takeaways from Cases:
- Quashed: Proceedings where no deception from inception or no entrustment (e.g., land sale breaches Maya Rani W/O Late Vijay Kumar vs State of Jharkhand - 2025 Supreme(Jhk) 1926, lease agreements Prem Chand Goyal VS M/s Monika India - 1997 Supreme(P&H) 1273).
- Sustained: Where entrustment is clear, but 420 dropped (e.g., shrimp delivery failure Kola Thirumalaraju Vs State Of Karnataka - 2025 Supreme(Online)(KAR) 7588).
Principles for Quashing Under Section 482 CrPC
The Supreme Court in Indian Oil Corporation v. NEPC India outlined:
- Quash if allegations, taken at face value, do not constitute an offense.
- Quash if abuse of process, like malice or converting civil disputes to criminal cases.
- Do not quash legitimate prosecutions sparingly.
A complaint can be quashed where the allegations... do not prima facie constitute any offence. Indian Oil Corporation VS NEPC India LTD. - 2006 6 Supreme 66
In another ruling: invoking the jurisdiction of criminal court... is certainly an abuse of the process of law. G. Sagar Suri VS State Of U. P - 2000 1 Supreme 322
Practical Implications for Accused and Complainants
- For Accused: Argue lack of entrustment/mens rea early. File for quashing if civil in nature.
- For Complainants: Prove dishonest intent from the start; avoid shotgun approaches.
- Trial Courts: Examine merits without detailed inquiry at quashing stage.
Recent cases show courts leaning towards quashing frivolous dual charges to prevent harassment.
Conclusion: Key Takeaways
- Sections 406 and 420 are generally incompatible; courts often sustain one and quash the other.
- Civil disputes rarely qualify without clear criminal intent.
- Quashing is common under Section 482 CrPC to prevent abuse.
| Offense | Key Ingredient | Compatibility Issue |
|---------|---------------|---------------------|
| S.406 | Entrustment | Requires property handover |
| S.420 | Deception | No entrustment needed |
In most cases, simultaneous trials falter on these distinctions. Always seek professional advice.
References: Judgments from Supreme Court and High Courts including Indian Oil Corporation VS NEPC India LTD. - 2006 6 Supreme 66, Kola Thirumalaraju Vs State Of Karnataka - 2025 Supreme(Online)(KAR) 7588, Maya Rani W/O Late Vijay Kumar vs State of Jharkhand - 2025 Supreme(Jhk) 1926, Kishore Singh Mertiya vs State of Rajasthan - 2024 Supreme(Online)(RAJ) 27051, B.Murugeshan vs K.Prabhu - 2025 Supreme(Online)(Mad) 68892, G. Sagar Suri VS State Of U. P - 2000 1 Supreme 322.
Search Results for "Can Sections 406 & 420 IPC Be Tried Together?"
2006 6 Supreme 66 • India - Supreme Court
H.K.SEMA, R.V.RAVEENDRAN
The very first requirement of section 405, that is the person accused of criminal breach of trust must have been "entrusted with ... the process of the court, as when the criminal proceeding is found to have been initiated with malafides/malice for wreaking vengeance ... in possession of NEPC India at all relevant times — Section 403 IPC is not....
1992 0 Supreme(SC) 581 • India - Supreme Court
K.JAYACHANDRA REDDY, S.R.PANDIAN
,1860 - Sections 161, 162, 163, 164, 409,420,468, 471 and 165 – Criminal Procedure Code,1973 - Sections 340, 482 , 119, 397, 401 ... Constitution of India,1950 - Articles 21, 51 -A , 77 , 73 , 118 , 32 , 226 and 300-A - Indian Penal Code ... feel that any further deliberation on this matter may affect the merits of case at any later point of time – Court refrain from ... unknown persons, involved in a series of criminal offences #HL....
1988 0 Supreme(SC) 337 • India - Supreme Court
B.C.RAY, G.L.OZA, M.N.VENKATACHALIAH, RANGANATH MISRA, S.NATARAJAN, S.RANGANATHAN, SABYASACHI MUKHARJEE
The first sub-section deals with a sine qua non for the trial of certain offences, whereas the second sub-section is only of a procedural ... cases from one court to another are to be found in Article 139-A of the Constitution and section 406 of the Cr. ... Section 406 of the Code could perhaps be applied on the principle that the Special Judge....
2000 1 Supreme 322 • India - Supreme Court
D.P.WADHWA, S.SAGHIR AHMAD
482-Inherent powers of High Court-Quashing of FIR/Criminal proceedings-Complaint under Sections 406/420 ... appellant in criminal proceedings-Complaint to prosecute u/s 406/420 is an abuse of process of law-Prosecution quashed. ... High Court-Quashing of Criminal ....
2004 3 Supreme 210 • India - Supreme Court
DORAISWAMY RAJU, ARIJIT PASAYAT
Section 311 and Section 391 of the Code and Section 165 of the of truth, fraud on legal process and the resultant decisions of Courts - coram non judis and ... is found by having recourse to Section 311 or at a later stage also resorting to Section 391 instead of throwing hands in the air ... While dealing with the claims ....
2006 0 Supreme(MP) 1122 • India - Madhya Pradesh
S.S.DWIVEDI
Criminal Breach of Trust - Indian Penal Code - Section 420, Section 406, Section 34Fact of the Case: The applicants ... The court held that the applicants did not have criminal intent to deceive the complainant and that no charge under Sections 420 ... The trial#H....
2025 Supreme(Online)(Mad) 68892 • India - IN THE HIGH COURT OF JUDICATURE AT MADRAS
L.VICTORIA GOWRI, J
... ... Ratio Decidendi: The court confirmed that for the offences of cheating and criminal breach of trust, the necessary elements ... (A) Code of Criminal Procedure, 1973 - Sections 239, 397, 401 - Indian Penal Code, 1860 - Sections 294(b), 406, 420 - Criminal Revision ... Petition - Allegations of cheating#HL_END....
2020 Supreme(Online)(KER) 11582 • India - High Court of Kerala
M.R.ANITHA, J
406 IPC, while acquitting on Section 468 IPC due to lack of evidence of forgery with intent to cheat. ... Crime - Conviction for Criminal Breach of Trust - Indian Penal Code - Sections 406, 468 - The court examined the elements of entrustment ... and dishonest mis....
1997 0 Supreme(P&H) 1273 • India - Punjab and Haryana
S.C.MALTE
CRIMINAL BREACH OF TRUST - SECTION 405 IPC - SECTION 420 IPC - CHEATING - INGREDIENTS - INTERPRETATION - AGREEMENT - TERMS - LIABILITY ... Finding of the Court: The court held that the ingredients of the offenses under Sections 405 and 420 IPC were not satisfied ... criminal breach....
2025 0 Supreme(Jhk) 1926 • India - IN THE HIGH COURT OF JHARKHAND AT RANCHI
ANIL KUMAR CHOUDHARY
(A) Code of Criminal Procedure, 1973 - Section 482 - Indian Penal Code - Sections 406 and 420 - Criminal proceedings quashed due ... , no criminal offences under IPC Sections 406 or 420 were established. ... criminal breach of trust or cheating; clear case of entrustment #H....
2025 Supreme(Online)(MP) 6731 • India - High Court of Madhya Pradesh
RAJESH KUMAR GUPTA, J
/law/412">IPC ) cannot be proceeded with simultaneously, particularly in sale-related matters, as they represent different offenses. The Supreme Court clarified that in a sale context, Section 406 ORDER This is first application filed by the applicant under Section 482 of B.N.S.S. for grant of anticipatory bail relating to Crime No. 292/2025 registered at Ambah, District - Morena (M.P.) for the offence under Sections 420 and 409 of the 6.
2025 Supreme(Online)(Cal) 5462 • India - Calcutta High Court
He argued that this would not attract the essential ingredients for offenses under Section 406 and 420 of IPC, as it lacks the dishonest intention (mens rea) at the very inception of the transaction. ... In view of the aforesaid detailed analysis of the facts, the relevant legal provisions, and the arguments advanced by the Learned Counsels, this Court finds that the FIR and the subsequent charge-sheet prima facie disclose cognizable offenses punishable under Sections 406 and #HL_STAR....
2026 Supreme(Online)(Mad) 7369 • India - IN THE HIGH COURT OF JUDICATURE AT MADRAS
HONOURABLE MRS. JUSTICE L. VICTORIA GOWRI
The final report has been laid for the offenses under sections406, 420, 120B and 34 of IPC as against the accused therein. A careful reading of the charge sheet would make it clear that the offenses under Section 406, 420, 120B and 34 of IPC, are clearly made out. ... Learned counsel for the petitioner submitted that the petitioner is the second accused in the case registered in Crime No.10 of 2018 registered for the offences under Sections 406, #HL_....
2022 Supreme(Online)(MAD) 13209 • India - High Court of Madras
HON`BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY
guilty of the offenses under Sections 408, 468, 420 of Indian Penal Code, and to undergo Rigorous Imprisonment for a period of three years each, in respect of each of the offenses and to pay a fine of Rs 2,000/- each, in respect of each of the offenses and in default of payment of fine to undergo two ... Therefore, I find that the first and second are guilty of the offense under Section 406 of IPC and the third and fourth accused are guilty of the offense under Section#HL_END....
2022 0 Supreme(Mad) 2995 • India - Madras
D. BHARATHA CHAKRAVARTHY
guilty of the offenses under Sections 408, 468, 420 of Indian Penal Code, and to undergo Rigorous Imprisonment for a period of three years each, in respect of each of the offenses and to pay a fine of Rs 2,000/- each, in respect of each of the offenses and in default of payment of fine to undergo two ... So, the complaint does not make out a case under any of the three sections, namely, 420, 465 and 468. It may be pointed out that Section 468 is intimately connected with Sections #HL_S....
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