Under section 406, P.P.C., essential ing redients for the offence of criminal breach of trust are as follows:

a)Entrustment.

b) Dishonest misappropriation or conversion to his own use by the person in whom the confidence reposed.
c) Dishonest use or disposal of property in violation of any direction of law .
d) Dishonest use or disposal of property in violation of any legal contract.
In view of above ingredients of criminal breach of trust, breach of any term of agreement to sell does not fall within the above mentioned criteria as the agreement to sell has been created under Contract Act, 1872 where one party signifies his willingness to do or not to do anything against a consideration and if the same has been accepted by the other party it becomes a promise whereas the said promise enforceable by law cre ates if the term "contract". Hence it is manifestly clear that any agreement requires an offer/proposal, acceptance, promise, consideration and enforceability then the same creates the reciprocal obligati parties. I ons agreed between the t is agreed to perform the obligation whereas payment of money does not fall within the preview of "entrustment" of property in terms of section 406, P.P.C., even otherwise, there is no misappropriation if the seller after receiving the sale consideration or part of sale consid eration refused to transfer the property or failed to abide the terms of agreement as the said failure or breach of terms could not be equated with dishonest use, disposal of the property, violation of any legal contract, however, any breach of such agreem ent has a remedy under Specific Relief Act, 1877 where one can seek specific performance of a contract if the same is enforceable by law and the court of law has to see which party is responsible for refusal or failure to abide by the terms of the contract . As a result of said evaluation by the court of law either the defendant has been directed to perform the contract or pay the damages under the said law.
The above referred scheme of law under Specific Relief Act, mechanism which cove 1877 provides a rs all those contracts between the parties which have been executed in terms of Contract Act, 1872 and their remedies are only provided in Specific Relief Act, 1877 where the ingredients of criminal breach of trust have no space as the concept of mens rea could only be assessed by the criminal court whereas the agreement does not fulfill the requirement of criminal breach of trust.

Criminal Misc. No.787-BC of 2022
Muhammad Musawar Abbasi Versus The State and another.
20-06-2023












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