# ~?-1 ~;---:-'.·~ :'.w· '-"-, _.< MOHD. SULAil\IAN v. MOHD. AYUB & ANR

- **Citation:** [1965] 2 S.C.R. 398
- **Court:** Supreme Court of India
- **Decided:** 1964-12-09
- **Case number:** Criminal Appeal No. 128 of 1962
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/1-w-mohd-sulail-ian-v-mohd-ayub-anr-3416
- **Pages:** 5

## Headnote

......
-~?-1 ~;---:-'.·~
:'.w·
'-"-,
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MOHD. SULAil\IAN
Y.
MOHD. AYUB & ANR.
December 9, 1964
[P. B. GAJENDRAGADKAR, C.J., K. N. WANCHOO, I. c. SHAH,
. N. RAJAGOPALA AYYANGAR and S. M. SIKRI, iJ.] .
Civil dispute--Person hiring article for own use lat~~ claiming ownership by purchase-Dispute about nature of agreement-Hirer whether guilty
of breach of trust-Indian Penal Code ss. 405 and 406.
A
B
·
The appellant tool:: an electric motor from an electrical Works in
which the respondent was employed. Dispute arose about the terms on . C .
v•hich the motor had been taken. The appellant wrote a Jetter to the
Works that he had purchased the motor after paying its full price; on
behalf of the works it was said that it had only been given on hire. The
Works. through the respondent, filed a complaint against the appellant
alleging breach of trust. The complaint was dismissed by the trying magistrate but in appeal under s. 417 ( 3) Criminal Procedure Code the High
Court held that the claim of ownership made by the appellant in his
' letter was not bona fide and that by writing the said letter he had sought
D
to cause wrongful gain to himself and wrongful loss to the works in \iolation of the entrustment, which made him guilty under s. 406 of the
•
Indian Perta! Code. In appeal to the Supreme Court by special leave,
HEID : The appeal must succeed.
Clearly s. 405 contemplates something being done with respect to the
property which would indicate either misappropriation or conversion to the
T
offender's own use, or its use or disposal m violation of the contract
E.
express or implied.
But when as in the present case nothing was done
with respect to the use of the property which was not in accordance with
the hiring agreement between the parties it cannot be said there was mis-·
appropriation or conversion of the property or its use or disposal in vioation of the contract. The appellant did not part with the possession· of
the motor to any body else; he put it to his own use-the purpose for
which he had tal::en it. The use of the motor remained the same after the
letter in question as before it. The said letter merely raised a dispute of
F
a civil nature bera·een the parties and there was no question of any criminal
breach of trt1,5t punishable under s. 406 with respect· to the matter on the
basis of that letter. [401 D-F; 402 E]
·

## Text

......
-~?-1 ~;---:-'.·~
:'.w·
'-"-,
_.<
MOHD. SULAil\IAN
Y.
MOHD. AYUB & ANR.
December 9, 1964
[P. B. GAJENDRAGADKAR, C.J., K. N. WANCHOO, I. c. SHAH,
. N. RAJAGOPALA AYYANGAR and S. M. SIKRI, iJ.] .
Civil dispute--Person hiring article for own use lat~~ claiming ownership by purchase-Dispute about nature of agreement-Hirer whether guilty
of breach of trust-Indian Penal Code ss. 405 and 406.
A
B
·
The appellant tool:: an electric motor from an electrical Works in
which the respondent was employed. Dispute arose about the terms on . C .
v•hich the motor had been taken. The appellant wrote a Jetter to the
Works that he had purchased the motor after paying its full price; on
behalf of the works it was said that it had only been given on hire. The
Works. through the respondent, filed a complaint against the appellant
alleging breach of trust. The complaint was dismissed by the trying magistrate but in appeal under s. 417 ( 3) Criminal Procedure Code the High
Court held that the claim of ownership made by the appellant in his
' letter was not bona fide and that by writing the said letter he had sought
D
to cause wrongful gain to himself and wrongful loss to the works in \iolation of the entrustment, which made him guilty under s. 406 of the
•
Indian Perta! Code. In appeal to the Supreme Court by special leave,
HEID : The appeal must succeed.
Clearly s. 405 contemplates something being done with respect to the
property which would indicate either misappropriation or conversion to the
T
offender's own use, or its use or disposal m violation of the contract
E.
express or implied.
But when as in the present case nothing was done
with respect to the use of the property which was not in accordance with
the hiring agreement between the parties it cannot be said there was mis-·
appropriation or conversion of the property or its use or disposal in vioation of the contract. The appellant did not part with the possession· of
the motor to any body else; he put it to his own use-the purpose for
which he had tal::en it. The use of the motor remained the same after the
letter in question as before it. The said letter merely raised a dispute of
F
a civil nature bera·een the parties and there was no question of any criminal
breach of trt1,5t punishable under s. 406 with respect· to the matter on the
basis of that letter. [401 D-F; 402 E]
·
CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No.
128 of 1962.
Appeal from the judgment and order dated January 30, 1962,
of the Calcutta High Court in Criminal Appeal No. 429 of 1960.
S. C. Mazumdar, for the appellant.
P. K. Chakravarti and P. K. Bose, for.the respondent no. 2.
The Judgment of the court was delivered by
Wanchoo, J.
This is an appeal on a certificate granted by
th~ Calcutta High Court. The appellant hired a westing house,
R
•
\
SULAIMAN v. AYUB (Wanchoo, J.)
399
A D. C. motor from the Modern Electrical Works (hereinafter referred to as the Works) on April 4, 1958 on a rent of Rs. 40 per
month.
The hiring period was to last for at least three months
and it was agreed that if the motor or parts thereof were lost or
damaged by the appellant, he would be bound to pay the whole
cost of the motor and the parts.
The motor remained in the use
B of the appellant and hir.e-charges were paid by him from April
1958 to January 1959. Therefater it is said that no hire-charges
were paid.
On June 8, 1959, the appellant wrote a letter to the
Works in which he said that he had purchased the motor in
question for Rs. 600 on condition that ihe same would be tried
C for three months, and if it was found satisfactory the money would
be paid and the purchase completed.
The letter also stated that
the agreement was that if the motor was not found satisfactory,
the appellant would pay three months' hire at Rs. 40 per month
and the motor would be returned th.ereafter.
Finally, the appellant said in the letter that the Works had been paid Rs. 620 in all
D
and thus the purchase had been completed.
The appellant therefore requested the Works to give him a slip saying that the motor
had been sold to the appellant, as no further money was due to
the Works.
On June 15, 1959, the Works sent a reply to the
appellant denying that any such agreement as was alleged by the
appellant had been made.
It was also denied that Rs. 620 had
E
been paid, and therefore the purchase was complete.
Finally it
was said that the appellant had only paid Rs. 400 and Rs. 200
were still due from him for the months of February to June 1959.
The appellant replied to this letter in which he reiterated his stand
taken in the earlier letter and gave details of how the payment of
Rs. 620 had been made.
Thereafter the Works filed a complaint
F
through its servant Mohd. Ayub on July l, 1959 in which after
stating its case it urged that the appellant had committed criminal
breach of trust and was therefore guilty under s. 406 of
the
Indian Penal Code.
On this complaint the appellant was summoned by the PresiG
dency Magistrate 9th Court, Calcutta and after taking
some
evidence for the prosecution, the Magistrate discharged the appellant holding that there was no satisfactory. evidence of dishonest
misappropriation or conversion of the motor by the appellant to
his own use and that the dispute between the parties was essentially
of a civil nature.
Mohd. Ayub then went in revision to the High
H Court. The High Court set aside the order of discharge and
directed further enquiry in the matter by another Magistrate. The
case then went back to the Third Presidency Magistrate, Calcutta,
400
SUPllll!ME COURT llBPORTS
I
(1965] 2 S.C.R.
who eventually found the appellant not guilty and ordered his
A
acquittal on the ground that there was dispute between the parties
as to the actual nature of the transaction and it could not be said
that there was any dishonest intention oh the part of the appellant
to misappropriate the motor.
Mohd. Ayub then filed an appeal
before the High Court iunder s. 417 ( 3 j of the Code of Criminal
Procedure.
Eventually the matter was heard by a Division Bench
JS
of the High Court, and it came to the cionclusion that it was clear
(rom the letter of June 8, 1959 (to which we have -already referred) that the same could not have been written unless the appellant dishonestly in violation of the entrustment wanted to cause
wrongful loss to the complainant and 1 wrongful gain to himself.
It was further held that the letter did not show that there was a
C
bona fide claim of owmmhip over the property and the claim was
merely a pretence whic:h could not exonerate the appellant from
being punished under s. 406 of the lndian Penal Code.
The
appellant then applied for a certificate to enable him to file an
appeal to this Court, which was grai;ited; and that is how the 0
matter has come up before us.
We are of the opilrion that this appeal must succeed.
It ia
not in dispute between. the parties that the motor was entrusted
to the appellant by the Works for bis use. The dispute was whether
this entrustment was merely by way of hire (which was the case
Qf the Works) or, as was the c~ of, the appellant, was on the I:
basis of an agreement between the parties that the appellant would
purchase the motor if he found it satisfactory after trying it for
three months and pay Rs. 600 as the price and that he would
return it if he found it unsatisfactory ,during this period of three
months and. pay Rs. 40 each month as hire for that period. The
real dispute between the parties therefore was as to the nature of
P'
the agreement betwee11 them when the motor was entrusted to
the appellant in April 1958. That di~pute was clearly of a civil
nature.
The Works however contended that by writing the letter
of June 8, 1959 the appellant committed breach of trust and was
guilty under s. 406 of the .Indian Penal Code.
Now in that letter G
the appellant put forward his side of .the case as to the terms of
the agreement when hi: took delivery 6f the motor in April 1958.
The question is whether by writing that letter the appellant could
bC said to have committed the offence defined in s. 405 of the
Indian Penal Code and punishable under s. 406 thereof.
Now
s. 405 runs as follows :-
'
H
"Whoever, being in any manner entrusted with property,
or with any do:minion over proiierty, dishonestly mis-
'..
'•
/
A
B
SULAIMAN v. AYUB (Wanchoo, /.)
appropriates or converts to his own use that property,
or dishonestly uses or disposes of that property in violation of any direction of Jaw prescribing the mode in
which such trust is to be discharged, or of any legal
contract, express or implied, which he has maue touching the discharge of such trust, or wilfully suffers any
other person so to do, commits criminal breach of trust."
It may be accepted that the appellant was entrusted with the motor
by virtue of the agreement between him and the Works, the terms
of which are seriously in dispute.
The question however is whether the appellant dishonestly misappropriated or converted to
C his own use that motor.
On the facts in the present case the
motor was handed over to the appellant for his n~e even according to the case of the Works. Unless therefore it can be shown
that the appellant by doing something to the motor which he wa~
not entitled to do dishonestly misappropriated or converted the
D motor to his own use, he cannot be guilty of breach c>f trust under
this part of s. 405.
Now the case of the Works i~ that the appellant must be deemed to have misappropriated or converted to his
own use the motor by writing the letter of June 8th.
It is clear
however that the letter shows no change in the use of the motor,
which, according to the Works, tl1e appellant had hired for his
E own use.
Therefore it cannot be said that merely by writing that
letter of June 8, the appellant dealt with the motor in such manner
as would amount to its misappropriation or conversion to his own
use by him.
Clear)y the appellant was using the motor for his
own purpose before that letter and continued to use it in the same
way after the letter.
That letter therefore cannot in our opinion
F
result in the misappropriation or conversion of the motor to his
own use by the appellant within the meaning of these words in
s. 405 in the circumstances of th.e present case.
It is however urged that even if that be so, the appellant must
be held to have dishonestly used or disposed of the motor in violaG tion of the legal contract, express or implied, whi~h he had made
touching the discharge of such trust, because of the letter of June
8.
Now it is clear from the receipt given by tl1e appellant to
the Works when he took the motor in April 1958 that he was
taking it for his own use on certain terms.
There is however
H
nothing to show that by writing the letter of June 8 the appellant
used the motor in violation of any legal contract, exprc~s or
implied, which he had made with respect to it for use of the motor
was the same before the letter as well as after it.
Nor can it be
402
·-,-· _,,,., '•_
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i
SUPREME COURT llBPORTS
i
[1965] 2 S.C.R.
said that the appellant had disposed of the motor in violation of A
any legal contract .which he had ·made with respect thereto for it
is not the case of the Works that the appellant had parted with
the possession of the motor to somebody else. H, for example,
the appellant had sold that motor, there, might have been some,
thing to be said for the view that he had disposed of the motor
in violation of the contrac:t with respect to it even if it was a hireB
purchase contract.
But on the facts of this case all that the letter
of June 8 does is to put forward the case of the appellant with
respect to the transaction of April 4, 1958.
So far as the use of
the motor is concerned there has not been any change in it to
indicate either misappropriation or conversion or disposal of it C
in any manner against the terms of the contract, express
or
implied.
Clearly s. 405 contemplates something being done with
respect to the property which would indicate either misappropriation or conversion or its use or disposal in violation of the contract,
express or implied.
But where, as in the present case, nothing
was done with respect to the use of the property which was not in D
accordance with the hiring agreement , between the parties, it
cannot be said that thern was misappropriation or conversion of
the property or its use or disposal in violation of the contract. We
are not expressing any opinion as to the correctness of the case
either of the appellant or of the Works, in this behalf.
All that
we emphasise is that the letter of June 8 merely raises a dispute E
of civil nature between the parties and there is no question of any
criminal breach of trust with respect to the motor on the basis of
that letter. In this view of the matter ,we allow the appeal, set
aside the conviction of the appellant and order his acquittal. The
fine, if paid, will be refunded to him.
1
F
Appeal allowed.