There were two contracts-one between the principal and contractor and another between contractor and sub-contractor. On completition of work, the sub-contractor demanded money for the completion of work and on non-paymen

Section 403 and 404 of the Indian Penal Code, 1860 (IPC) provides the provisions related to criminal misappropriation of property. The provision relevant to the given situation is section 403. According to section 403, whoever dishonestly misappropriates or converts to his own use any movable property, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both. The facts of the given situation are similar to the case of U. Dhar v. State of Jharkhand, (2003) 2 SCC 219 , where the Supreme Court observed that the matter was of a civil nature and the criminal complaint was not maintainable and was liable to be quashed. The Supreme Court also observed that money paid by the principal to the contractor was not money belonging to the complainant, sub-contractor, hence there was no question of misappropriation. In view of the provision and case law discussed above, it can be said that no offense has been committed. Essential Ingredients of Criminal Misappropriation of Property Dishonestly is an essential ingredient of the offense of Dishonest Misappropriation of Property and IPC provides that whoever does anything with the intention of causing wrongful gain to one person or wrongful loss to another person, is said to do that 'dishonestly'. Misappropriation means the intentional, illegal use of the property or funds of another person for one's own use or other unauthorized purpose. There are two things necessary before an offence under section 403 can be established. Firstly, that the property must be misappropriated or converted to the use of the accused, and, secondly, that he must misappropriate or convert it dishonestly.