Hoso Transport Company (HTC), is a transport corporation which is exempted under Section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. During the current year, the corporation deducted the

Section 405 of the Indian Penal Code, 1860 (IPC) provides the definition of Criminal Breach of Trust. Explanation 1 to section 405 of IPC provides that a person, being an employer of an establishment whether exempted under section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 or not who deducts the employee's contribution from the wages payable to the employee for the credit to a Provident Fund or Family Pension Fund established by any law for the time being in force, shall be deemed to have been entrusted with the amount of contribution so deducted by him and if he makes default in the payment of such contribution to the said Fund in violation of the said law, shall be deemed to have dishonestly used the amount of the said contribution in violation of a direction of law as aforesaid. Moreover, acute financial crunch is not made a valid reason for non-remittance of the employees' contribution. In view of the above, it can be concluded that there is a Criminal Breach of Trust on the part of Haso Transport Company.