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Section 306 falls under Chapter 17 of the Bharatiya Nyaya Sanhita (BNS). Chapter 17 covers offences against property. Each section under this chapter deals with different offences related to various property related crimes. The section specifically deals with theft by employee. Let us take a closer look at its provisions.

Definition of BNS Section 306

Section 306 of the Bharatiya Nyaya Sanhita (BNS), 2023 states:

Whoever, being a clerk or servant, or being employed in the capacity of a clerk or servant, commits theft in respect of any property in the possession of his master or employer, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Explanation and Illustration of Section 306

This section is applicable to any person within the sovereign borders of India, whether citizen, resident or otherwise. It deals with the offence of theft by employee. Let us break down the section to get a better understanding of it.

Offence

While Section 303 deals with theft in general, certain kinds of thefts are considered slightly more serious due to the nature and context and hence have a slightly harsher punitive tone. This section deals with theft by a clerk, servant or employee of an item belonging to their employer. The reason why this specific form of theft has been made to stand out from general theft is because apart from dispossessing the owner of their property, the act also involves a criminal breach of trust, where a person, in good faith, had employed a person to care for the items in their possession. When a person who has been hired for a specific task maliciously performs the opposite of that task, it amounts to criminal breach of trust. And hence, theft by a clerk or a servant is considered more serious than theft by a stranger who otherwise bears no moral obligation to the owner of such property.

Punishment

Any person found guilty of stealing property in possession of their employer shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

The above actions may not be an offence under this section if:

1. The offender is forced or coerced into performing the offence

2. The offender is a minor or not of sane mind.

However, there may be other sections under the BNS under which the above actions can be prosecuted and while they may be disqualified under the provisions of this section, such actions will still be punishable under the provisions of those respective sections of the BNS.

Illustration

X is hired by Y to take care of his guest house. Y, noticing that X hardly uses the guest house, starts selling items from the house, assuming that the owner won’t notice. X is an offender under the provisions of section 306.

Disclaimer: The examples provided are for educational purposes only and do not constitute legal advice. They should not be used for legal proceedings or decision-making. For specific legal matters, please consult a qualified legal professional.

Key Points in BNS Section 306

This section deals with: Theft by clerk or servant of property in possession of master.

Description of offence:

  • Any person employed as a clerk or servant at a property commits theft at such property or the owner of such property shall be considered an offender under this section.

  • Punishment for offence:
  • Any person found guilty of stealing property in possession of their employer shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

  • Exceptions to offence:
  • The offender has been coerced into committing the offence
  • The person is a minor or not of sane mind
    1. Differences Between Section 306 of BNS and its Equivalent IPC Section

      The BNS came into force on July 1, 2024, effectively replacing the Indian Penal Code. Section 306 of BNS replaces IPC Section 381. Let us look at the changes that have been made in the provisions of the new section in comparison to the old one.

      BNS Sections/Subsections Subject IPC Sections Summary of Comparison
      306Theft by clerk or servant of property in possession of master. 381No change in provision for offence

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      FAQs about Section 306 of the Bharatiya Nyaya Sanhita (BNS)

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      What does BNS 307 address regarding theft?

      Section 306 addresses theft committed on a property by employees of such property.

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        What are the penalties for violating BNS 307?

        Any person found guilty of stealing property in possession of their employer shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

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          Does the section apply to thefts committed without the intention to cause harm?

          Yes. If harm is caused during the course of theft, it amounts to robbery and not theft. Section 306 only deals with theft, which is dishonest taking of a property without committing any act of harm.

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            What are some examples of actions that fall under this section?

            A servant stealing an artefact from the property is a simple example for offence under this section.

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              What should victims of planned theft do to seek justice?

              Any such person should immediately report the matter to the police.

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                Can BNS 307 be invoked for theft attempts even if the theft was unsuccessful?

                Yes. Attempt or intent to commit theft is actually central to the offence under Section 306, irrespective of the success or failure of such action.

                   Section 306 of BNS