IPC Section 403 - Dishonest misappropriation of property

403. Dishonest misappropriation of property. Whoever dishonestly misappropriates or converts

to his own use any movable property, shall be punished with imprisonment of either description for a

term which may extend to two years, or with fine, or with both.

Illustration s

(a) A takes property belonging to Z out o f 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 sell s 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 with the meaning

of this section.

Illustration

A finds a Government promissory note belonging to Z, bearing a blank endorsement. A, knowing that the note belongs to Z,

pledges it with a banker as a security or a loan, intending at a future time to restore it to Z. A has committed an offence under this

section.

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, is a question of fact.

It is not necessary that the finder should know who is the owner of the property, or that any parti cular

person is the owner of it; it is sufficient 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.

Illustration s

(a) A finds a rupee on the high road, not knowing to whom the rupee belong s, A picks up the rupee. Here A has not

committed the offence defined in this section.

(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 pick s up the purse with th e intention of restoring it to Z, bu t 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.