Difference Between Section 406 IPC and Section 420 IPC
Many people get confused between Section 406 IPC and Section 420 IPC because both deal with wrong actions. But they are different in their meaning and use.
Section 406 IPC – Criminal Breach of Trust
Section 406 is used when a person is trusted with something – like money, goods, or responsibility – and then that person breaks the trust and misuses it. For example, if you give someone money to keep safe, and they use it for their personal work without your permission, it is called a criminal breach of trust. This is a crime under Section 406 IPC. It is not just cheating; it is breaking someone’s trust. The punishment under this section can be jail up to 3 years, or fine, or both.
Section 420 IPC – Cheating and Dishonestly Inducing Delivery of Property
Section 420 IPC is applied when a person cheats someone and tricks them into giving money, property, or anything else valuable. In this case, the intention to cheat is present from the beginning. For example, if a person promises to sell a car but takes money and never gives the car because that car never exists, and from the start had no intention of selling it, it is cheating under Section 420. This section is more serious and the punishment can go up to 7 years in jail, with fine.
Main Difference Between Section 406 and 420 IPC
The key difference is in the intention. In Section 406, there is trust given by one person, and the other person misuses that trust. But in Section 420, the person plans to cheat from the beginning. One is about misuse of trust, and the other is about lying and cheating.
Section 406 Example:
- A jewellery shop gives diamonds worth ₹10 lakh to a salesperson for delivery. He sells them and keeps the money. This is criminal breach of trust.
- A shop owner gives ₹50,000 to his cashier to deposit in the bank. The cashier keeps the money for himself. This is criminal breach of trust.
- You give your employee ₹1 lakh to deposit in your company’s bank account. Instead, he uses that money for personal expenses. That is criminal breach of trust, and punishable under Section 406 IPC.
Section 420 Example:
- A man pretends to be an officer from LIC and collects ₹2 lakh from a family promising an insurance plan. He disappears. This is cheating.
- A man claims he’s a builder and takes ₹5 lakhs from a buyer for a flat, even though no such building exists. This is cheating.
- A person pretends to be a supplier and takes ₹5 lakhs as advance to supply goods but never intended to deliver anything. This is cheating, and punishable under Section 420 IPC.
Comparison Table
| Factor | Section 406 IPC | Section 420 IPC |
|---|---|---|
| Offence Type | Breach of Trust | Cheating |
| Nature | Dishonest use after trust | Dishonest intention from beginning |
| Trust involved? | Yes | No |
| Property Given | Based on trust | Based on lie |
| Punishment | Up to 3 years or fine or both | Up to 7 years + fine |
MCQs for AIBE Preparation
Q1. What is the maximum punishment under Section 406 IPC?
A) 5 years imprisonment
B) 3 years imprisonment or fine or both ✅
C) 7 years imprisonment
D) Life imprisonment
✔️ Correct Answer: B
Q2. Under Section 420 IPC, the dishonest intention must be present:
A) After taking the property
B) While using the property
C) From the very beginning ✅
D) After six months
✔️ Correct Answer: C
Q3. “Entrustment” of property is a key ingredient in which section?
A) Section 420
B) Section 406 ✅
C) Section 499
D) Section 379
✔️ Correct Answer: B
Q4. Cheating is defined under which section of IPC?
A) Section 420
B) Section 405
C) Section 415 ✅
D) Section 418
✔️ Correct Answer: C