Roy, proprietor of Roy & Co., approached Fast Rider Private Ltd, a transport carrier to deliver cotton bales from Mumbai to Delhi. The truck driver of the Company misappropriated the goods during transportation and a

According to section 405 of the Indian Penal Code, 1860 , Whoever, being in any manner entrusted with property, or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, or wilfully suffers any other person so to do, commits "criminal breach of trust". In the given situation, the transport carrier company being the Principal can be held responsible for civil wrong. However, the driver of truck can be held responsible for criminal breach of trust as the following essential ingredients of the offence of Criminal Breach of Trust: The accused must be entrusted with the property or with any dominion over property. There is a dishonest misappropriation uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract. In view of the given facts and above provision, it can be said that the Liability of the Company can be Civil Liability and the Liability of driver can be Criminal Liability. Alternate Answer to above paragraph In view of the fact that the contract for transportation of goods was between Roy & Co. and the Transport carrier company and goods were entrusted to the company and the Driver was an agent of the Transport company and therefore the misappropriation of goods by the Driver leads to (1) breach of trust by the Driver against the Transport company under the employment/ engagement contract between them inter se; and (2) a consequent breach of trust by the Transport Company against Roy & Co. under the contract for transportation of goods. Accordingly, subject to reliance upon the Principal - Agent relationship between the Driver and the Transport company the contention of the Transport company can be challenged if the elements of mens rea is proved against the concerned employees or directors of the Company and their Criminal Liability may arise.