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2025 SCMR 1117
In order to establish the offence of criminal breach of trust as defined under section 405 PPC and punishable under section 406 PPC two requisite elements must be present, namely entrustment of property and dishonest misappropriation of (naeem)entrusted property. The scope of term ‘entrustment’ has been defined in multiple judgments of the Supreme Court. An ‘entrustment’ is said to exist when possession of a property is temporarily given to a recipient who holds that property as trust for the giver because the same property must be returned to the giver. Therefore, a fiduciary relationship exists between the giver and recipient regarding the entrusted property.
A loan does not qualify as an entrustment. Where entrustment is made a fiduciary relationship arises between the giver and recipient, and the specific property entrusted is expected to be returned in (naeem)its original form to the giver. However, such elements are absent in a loan where the relationship between the lender and borrower is purely contractual and there is no expectation of return of the same exact property, but rather something of the same value is returned.
C.P.L.A.1575/2024
AYESHA TAYYAB ---Petitioner
Versus
STATION HOUSE OFFICER, POLICE STATION CANTT. DISTRICT
SIALKOT