STATE OF PUNJAB vs PRITAM CHAND .

The Supreme Court held that the acquittal under Section 406 IPC for criminal breach of trust was erroneous as the trial court failed to adequately examine the ingredients of the offence, particularly the requirement of entrustment and misappropriation. The Court emphasized that a breach of contract does not preclude criminal prosecution if the elements of criminal breach of trust are established. The High Court's endorsement of the acquittal was also deemed unreasoned, leading to the conclusion that the matter warranted further examination of the criminal charges against the accused.