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Indian Penal Code,1860

Act No : 45


Section : Dishonest misappropriation of property.

403. Dishonest misappropriation of property.--Whoever dishonestlymisappropriates or converts to his own use any movable property, shallbe punished with imprisonment of either description for a term whichmay extend to two years, or with fine, or with both.----------------------------------------------------------------------1. Subs. by Act 26 of 1955, s. 117 and Sch., for "transportation for life."----------------------------------------------------------------------192 Illustrations (a) A takes property belonging to Z out of Z's possession in goodfaith, believing, at the time when he takes it, that the propertybelongs to himself. A is not guilty of theft; but if A, afterdiscovering his mistake, dishonestly appropriates the property to hisown use, he is guilty of an offence under this section. (b) A, being on friendly terms with Z, goes into Z's library inZ'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 takethe 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 guiltyof an offence under this section. (c) A and B being joint owners of a horse, A takes the horse outof B's possession, intending to use it. Here as A has a right to usethe horse, he does not dishonestly misappropriate it. But, if A sellsthe horse and appropriates the whole proceeds to his own use, he isguilty of an offence under this section. Explanation 1.-A dishonest misappropriation for a time only is amisappropriation with the meaning of this section. Illustration A finds a Government promissory note belonging to Z, bearing ablank endorsement. A, knowing that the note belongs to Z, pledges itwith a banker as a security or a loan, intending at a future time torestore it to Z. A has committed an offence under this section. Explanation 2.-A person who finds property not in the possessionof any other person, and such property for the purpose of protectingit for, or of restoring it to, the owner, does not take ormisappropriate it dishonestly, and is not guilty of an offence; but heis guilty of the offence above defined, if he appropriates it to hisown use, when he knows or has the means of discovering the owner, orbefore he has used reasonable means to discover and give notice to theowner and has kept the property a reasonable time to enable the ownerto claim it. What are reasonable means or what is a reasonable time in such acase, is a question of fact. It is not necessary that the finder should know who is the ownerof the property, or that any particular person is the owner of it: itis sufficient if, at the time of appropriating it, he does not believeit to be his own property, or in good faith believe that the realowner cannot be found. Illustrations (a) A finds a rupee on the high-road, not knowing to whom therupee belong, A picks up the rupee. Here A has not committed theoffence defined in this section. (b) A finds a letter on the road, containing a bank note. Fromthe direction and contents of the letter he learns to whom the notebelongs. He appropriates the note. He is guilty of an offence underthis section. (c) A finds a cheque payable to bearer. He can form no conjectureas 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 directhim to the person in whose favour the cheque was drawn. A appropriatesthe cheque without attempting to discover the owner. He is guilty ofan offence under this section.193 (d) A sees Z drop his purse with money in it. A pick up the pursewith the intention of restoring it to Z, bu afterwards appropriates itto 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 tohis own use. A is guilty of an offence under this section. (f) A finds a valuable ring, not knowing to whom it belongs. Asells it immediately without attempting to discover the owner. A isguilty of an offence under this section.


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