Yes, IPC Section 406 is compoundable, but only with the permission of the court. Under the Code of Criminal Procedure, 1973 (CrPC), an offence under IPC Section 406 (criminal breach of trust) could be compounded by the person affected with the court’s permission. After the implementation of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), the same legal position continues under the corresponding provisions relating to compounding of offences.
Detailed Explanation
If you are searching for the answer to “Is IPC 406 compoundable or not?”, the answer is Yes, but not automatically. The parties cannot settle the case on their own. They must obtain the permission of the court before the offence can be legally compounded.
What is IPC Section 406?
IPC Section 406 deals with criminal breach of trust.
Criminal breach of trust occurs when a person is entrusted with property or money but dishonestly misappropriates it or uses it for a purpose other than the one for which it was entrusted.
For example, if a person receives money to keep safely but later refuses to return it and dishonestly uses it for personal benefit, the act may amount to criminal breach of trust.
Is IPC 406 Compoundable?
Yes. IPC Section 406 is a compoundable offence with the permission of the court.
This means that if the complainant and the accused settle their dispute, the criminal case can be closed only after the court is satisfied that the settlement is voluntary and lawful.
The court examines whether:
- The settlement is genuine.
- There is no force, pressure or fraud.
- Compounding will not adversely affect the interests of justice.
Only after the court grants permission does the criminal case come to an end.
Why is Court Permission Required?
Criminal offences affect not only the victim but also society.
Therefore, in certain offences, the law allows settlement only after judicial scrutiny.
Court permission ensures that:
- The victim has agreed voluntarily.
- No undue influence has been exercised.
- The compromise is fair.
- Public interest is not harmed.
Who Can Compound IPC Section 406?
Generally, the person whose property or money was dishonestly misused is entitled to request compounding before the court.
If the court is satisfied with the compromise, it may permit compounding and dispose of the criminal proceedings.
What Happens After Compounding?
Once the court allows compounding:
- The accused is treated as acquitted for that offence.
- The criminal proceedings come to an end.
- No further trial is conducted for the compounded offence.
Difference Between Compoundable and Non-Compoundable Offences
| Basis | Compoundable Offence | Non-Compoundable Offence |
|---|---|---|
| Settlement allowed | Yes | No |
| Court permission | Sometimes required | Settlement generally not allowed |
| Case can end through compromise | Yes | Normally No |
| Example | IPC Section 406 | Serious offences like murder or rape |
Practical Example
A businessman entrusts ₹5 lakh to his employee for business purposes. Later, the employee dishonestly uses the money for personal expenses. An FIR is registered under IPC Section 406.
During the case, both parties settle the dispute, and the employee returns the money. They jointly apply before the court for compounding. If the court finds the compromise genuine, it may permit compounding, and the case will be closed.
Key Points / Important Facts
- IPC Section 406 deals with criminal breach of trust.
- It is a compoundable offence.
- Court permission is mandatory before compounding.
- Private settlement alone does not automatically close the criminal case.
- After court approval, the accused is treated as acquitted.
- The court checks whether the compromise is voluntary and genuine.
- If other non-compoundable offences are also involved, IPC Section 406 alone may not end the entire criminal case.
Legal Provision or Section
Indian Penal Code, 1860 – Section 406
Section 406 prescribes punishment for criminal breach of trust. The punishment may extend to three years’ imprisonment, or fine, or both.
Bharatiya Nagarik Suraksha Sanhita, 2023
The provisions relating to compounding of offences are now contained in the Bharatiya Nagarik Suraksha Sanhita, 2023, which has replaced the Code of Criminal Procedure, 1973.
The legal position remains that criminal breach of trust punishable under IPC Section 406 can be compounded with the permission of the court by the person affected.
Important Supreme Court / High Court Judgments
Gian Singh v. State of Punjab (2012)
The Supreme Court held that criminal proceedings involving private disputes may be quashed in appropriate cases if the parties have genuinely settled the matter, provided the offence is not of a serious nature affecting society at large.
Narinder Singh v. State of Punjab (2014)
The Supreme Court laid down principles for quashing criminal proceedings after settlement and clarified that courts should consider the nature of the offence and the interests of justice before granting relief.
State of Madhya Pradesh v. Laxmi Narayan (2019)
The Supreme Court explained that compromise cannot be accepted in serious offences affecting society, but disputes having a predominantly private or personal nature may be considered depending on the facts of the case.
Frequently Asked Questions (FAQs)
Can IPC Section 406 be settled outside the court?
The parties may reach a private settlement, but the criminal case will not end unless the competent court grants permission for compounding or passes an appropriate order based on the applicable law.
Is court permission compulsory for compounding IPC Section 406?
Yes. IPC Section 406 is compoundable only with the permission of the court. A private agreement between the parties is not sufficient.
Can the police close an IPC 406 case after compromise?
No. Once an FIR has been registered and the matter is before the court, the police cannot close the case solely because the parties have settled. Judicial approval is required.
What if IPC Section 406 is filed along with non-compoundable offences?
In such cases, the settlement of IPC Section 406 alone may not end the entire criminal case. The court will examine each offence separately and decide according to law.
Does compounding amount to acquittal?
Yes. Once the court permits compounding, the accused is treated as acquitted of the compounded offence under the applicable criminal procedure law.
Conclusion
The answer to “Is IPC 406 compoundable or not?” is Yes. IPC Section 406 is a compoundable offence with the permission of the court. A compromise between the parties does not automatically end the criminal proceedings. The court must be satisfied that the settlement is voluntary, genuine and lawful before allowing compounding. If IPC Section 406 is accompanied by other serious or non-compoundable offences, separate legal consideration may be required.
Sources & References
- The Bharatiya Nagarik Suraksha Sanhita, 2023 – https://www.indiacode.nic.in
- eCommittee, Supreme Court of India – https://main.sci.gov.in
- India Code – https://www.indiacode.nic.in
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Prabh Kalsi provides global legal information and educational content to help readers understand legal concepts, rights, and processes across different countries. With experience in researching legal topics and simplifying complex legal information, he creates easy-to-understand content based on publicly available and trusted sources. This content is intended for informational purposes only.