P.UDAY KUMAR vs STATE OF JHARKHAND

The Supreme Court held that the ingredients of Section 406 IPC were not satisfied as the amount given by the complainant to the appellant was characterized as a loan for executing contract work, not as an entrustment. The Court found that since the complainant himself stated the nature of the transaction, the allegations did not constitute an offence under Section 406 IPC. Consequently, the Court set aside the order of the High Court dismissing the revision application and allowed the discharge of the appellant from the charges under Section 406 IPC.