THE STATE OF GUJARAT vs JASWANTLAL NATHALAL

The Supreme Court held that the prosecution failed to establish 'entrustment' under Section 409 IPC, as the transaction between the State and the contractor was a sale, not a fiduciary relationship. The Court emphasized that mere delivery of property does not imply entrustment unless the owner retains control and confidence over it. Consequently, the acquittal by the High Court was upheld, as there was no breach of trust committed by the respondent.