Section 306 BNS: Theft by Clerk or Servant of Property in Possession of Master (Formerly Section 381 IPC)

Section 306 of Bharatiya Nyaya Sanhita: Theft by Clerk or Servant of Property in Possession of Master

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

Whoever, being a clerk or servant, or being employed in the capacity of a clerk or servant, commits theft in respect of any property in the possession of his master or employer, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Legal Commentary & Landmark Judgments: Section 306

Section 306 punishes theft committed by a clerk or servant of property in the possession of their master or employer.

Fiduciary Capacity: The accused is employed as a clerk or servant at the material time.
Master's Property: The property stolen is in the possession or custody of the master/employer.
Dishonest Conversion: Taking the property dishonestly without employer consent.

Key Landmark Precedents:

Ram Narain v. State of U.P. (1973) 2 SCC 86: The Supreme Court noted that servants and clerks occupy positions of trust; dishonest misappropriation of employer cash or stock constitutes breach of fiduciary custody.
G.V. Rao v. L.H.V. Prasad (2000) 3 SCC 693: Emphasised that employment contracts and job attendance rosters must be proved to sustain the aggravated charge under this section.

Courtroom Practice & Strategic Litigation Guidance:

Prove the master-servant relationship via appointment letters, attendance registers, and salary slips. Defence should examine audit discrepancies showing that the shortfall was due to administrative book losses.

Section 306: Theft by Clerk or Servant of Property in Possession of Master

Section 306 of Bharatiya Nyaya Sanhita: Theft by Clerk or Servant of Property in Possession of Master

Legal Commentary & Landmark Judgments: Section 306